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10 things you can do with a HELOC


Jan 19, 2023



Are you a homeowner with major life goals that require access to capital? Perhaps a HELOC is exactly what you need. 

A home equity line of credit, commonly referred to as a HELOC, is a home loan that’s backed against your home’s equity. 

Technically a second mortgage taken out on your home, a HELOC is a popular tool leveraged by homeowners with strong credit and qualifying equity to provide access to funds — at a competitively low interest rate. 

10 Use Cases for a HELOC 

You’ve heard that HELOCs give you the financial power to take care of high-cost needs in your life, but what does that really look like? 

To help you better understand how a HELOC puts your accumulated equity to work for you, here is a list of things you can do with a home equity line of credit. 

#1. Renovate Your Home 

One of the most popular ways to use a HELOC is to fund the renovation of your home. 

If you’ve been dreaming about creating your dream house, a HELOC can help you fund the projects — covering the contractor service fees, cost of materials, and other expenses related to the construction, such as storage or hotel fees if you need to clear the rooms in your home that are being worked on. 

The total cost of a renovation project varies depending on the scope of work, but a HELOC can make it possible for you to finally move forward with the real estate upgrades you’ve been waiting for. 

#2. Add Amenities to Your Home 

Perhaps you don’t want to renovate, and instead are interested in adding more amenities to your home. As more homeowners are looking to make their homes the one-stop-shop for all of their lifestyle needs, perhaps you’re interested in adding the following features to your home: 

  • Home office
  • Sauna 
  • Pool 
  • Fitness area
  • Game room
  • Outdoor deck 
  • Home theater 
  • Smart home technologies 

If these upgrades appeal to you, a HELOC can provide you with the money you need to make it happen. 

#3. Redecorate Your Home 

You don’t need to invest in large-scale renovation work to make your home feel rejuvenated. You can refresh your home by conducting cosmetic improvements across the property. Interior upgrades can include: 

  • Artworks 
  • Curtains 
  • Rugs
  • Furniture
  • Hardware 
  • Linens 
  • Storage 

Whether you want to hire a professional interior designer or conduct a DIY redecoration project, a HELOC can provide you with the money you need to cover the costs. 

#4. Pay Off Longstanding Debts 

Are you saddled with debt on a high-interest line that you’d like to pay off in one go? You can leverage a HELOC to settle inconvenient and costly debts. By using the money drawn from your HELOC, you can pay off the debt from its original line. 

That debt will now contribute to your HELOC principal balance, so it would not necessarily get rid of the debt completely. However, you could improve your credit score and reduce interest costs by consolidating the debt with your HELOC.

#5. Finance a Wedding  

Is there a big wedding in the family coming up? Homeowners often seek out HELOCs to pay off large-ticket items and events, such as weddings and other celebrations. 

The average cost of a wedding in the United States is $29,000, as of May 2023. To prevent one of the biggest moments in life from becoming unmanageable financial stress, a HELOC can help cover the upfront costs. 

#6. Pay Tuition Costs 

Planning to send your children off to school, or are you returning to school for higher education? 

Whatever the circumstances, tuition is expensive. Anyone who has funded tuition also knows that, even after you pay for the semester, each class incurs additional costs for books and other required supplies. 

A HELOC is a great solution to help you cover these necessary expenses. 

#7. Build Up Cash Savings 

Do you want to build up a savings account? Perhaps you want to put away cash for a specific purpose like retirement, or maybe you just want to have an emergency fund that you can tap into when circumstances require it. Whatever your motivations are, it never hurts to have savings put away. 

If you’re searching for a source of quick savings, a HELOC can give you access to the money you need to feel secure. 

#8. Plan the Vacation of a Lifetime

Another popular reason why qualifying homeowners take out a HELOC is to pay for big vacations. If you’ve been wanting to take your loved ones on a dream vacation to make memories that will last forever, a HELOC can give you the financial power to finally stop daydreaming and actually book the reservations. 

#9. Fund Investments 

Are you looking to invest? Maybe you’re looking to put cash in the stock market, or maybe you are thinking about investing in a new business. Regardless of asset class, a HELOC can give you the cash you need to fund your investments. 

#10. Take Out a Down Payment on a Car Purchase

If you will be making a big purchase soon that requires a down payment, a HELOC can provide you with the cash you need to put money down as collateral on the new purchase. Maybe you’re buying a car, boat, motorcycle, jet-ski, RV… the list goes on, but the need to put money down remains consistent. 

Did these ten ways that you can use a HELOC inspire you to look into a home equity line of credit of your own? If so, get in touch with Hitch to learn more about our frictionless HELOC. Click here to check your HELOC offer from Hitch!

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Equal Housing Lender

Hitch, Inc. NMLS #2383367 #2383367

2158 NW Toussaint Drive. Bend, Oregon 97703

1. Qualified applicants may borrow up to 95% of their home’s value. This does not apply to investment properties.

2. HELOCs have a 10-year draw period. During the draw period, the borrower is required to make monthly minimum payments, which will equal the greater of (a) $100; or (b) the total of all accrued finance charges and other charges for the monthly billing cycle. During the draw period, the monthly minimum payments may not reduce the outstanding principal balance. During the repayment period, the borrower is required to make monthly minimum payments, which will equal the greater of (a) $100; or (b) 1/240th of the outstanding balance at the end of the draw period, plus all accrued finance charges and other fees, charges, and costs.The lender will calculate this amount by taking the outstanding Account Balance on the last day of the draw period and dividing it by 240 months and then adding any finance charge that accrues but remains unpaid during the monthly billing cycle plus any other fees, charges and costs to the fixed principal payment that is due. During the repayment period, the monthly minimum payments may not, to the extent permitted by law, fully repay the principal balance outstanding on the HELOC. At the end of the repayment period, the borrower must pay any remaining outstanding balance in one full payment.

3. The time it takes to get cash is measured from the time the Lending Partner receives all documents requested from the applicant and assumes the applicant’s stated income, property and title information provided in the loan application matches the requested documents and any supporting information. Most borrowers get their cash on average in 21 days. The time period calculation to get cash is based on the first 4 months of 2024 loan funding's, assumes the funds are wired, excludes weekends, and excludes the government-mandated disclosure waiting period. The amount of time it takes to get cash will vary depending on the applicant’s respective financial circumstances and the Lending Partner’s current volume of applications. Closing costs can vary from 3.0 - 5.0%. An appraisal may be required to be completed on the property in some instances.

4. Not all borrowers will meet the requirements necessary to qualify. Rates and terms are subject to change based on market conditions and borrower eligibility. This offer is subject to verification of borrower qualifications, property evaluations, income verification and credit approval. This is not a commitment to lend.

5. The content provided is presented for information purposes only. This is not a commitment to lend or extend credit. Information and/or dates are subject to change without notice. All loans are subject to credit approval. Other restrictions may apply.