Tips On Finding The Best HELOC With A Fixed Rate
Apr 26, 2023
Share
Are you interested in tapping into your home equity? Homeowners looking to access their homes may benefit from a Home Equity Line of Credit (HELOC).
With a HELOC, you can quickly access funds using your home’s equity as collateral. There are two main types of HELOCs: adjustable-rate and fixed-rate. While an adjustable-rate HELOC may offer more flexibility, a fixed-rate option can provide greater financial security.
If you’re looking for the best fixed-rate HELOC, read on to learn tips and insights to help you make the best decision.
What Is A HELOC?
With a Home Equity Line of Credit (HELOC) loan, you can use the equity in your home as collateral to borrow money. This financing option is attractive to homeowners for several reasons:
- Interest rates on HELOCs are usually lower compared to other loans
- The funds can be used for a variety of purposes, such as home improvement projects, debt consolidation, or significant expenses
- Repayment can be flexible based on the borrower's needs
What Is A Fixed-Rate HELOC?
You may be offered adjustable and fixed-rate options when shopping for a HELOC. A fixed-rate HELOC has a set interest rate for the loan's life, making it easier to budget for your monthly payments.
Compared to an adjustable-rate HELOC, a fixed-rate option offers more financial security as you will know how much the monthly payments will be.
This can be especially attractive to those who want to ensure their payments remain constant and want to avoid potential rate increases during the loan term. Plus, if interest rates fall, you can still keep the same rate and enjoy lower payments.
Tips For Finding The Best Fixed-Rate HELOC
Now that you know more about fixed-rate HELOCs, here are some tips to help you find the best one for your needs:
- Compare Interest Rates
Compare various lenders' annual percentage rates (APRs) to find the most competitive rate. This is a crucial factor in determining the overall cost of your loan - and will help you save money over the life of your loan.
- Shop Around
Don’t just settle for the first offer that comes your way - be sure to shop around and compare rates from multiple lenders to ensure you’re getting the best deal. The more informed you are about the offers available, the better position you’ll be in to negotiate a better rate.
- Look at Fees and Other Costs
In addition to interest rates, look at any other costs associated with the loan, such as closing costs, origination fees, and annual maintenance fees. Be sure to factor these into your decision so you can get an accurate comparison of the overall cost of the loan.
- Read the Fine Print
Be sure to read all of the details and terms of your fixed-rate HELOC. Pay close attention to any penalties or fees for paying off the loan early, as these can vary greatly from one lender to another.
- Pay Attention to Your Credit Score
Your credit score is an essential factor in determining the interest rate you qualify for. Check your credit score before shopping for a fixed-rate HELOC to compare offers accurately.
Introducing Hitch: Your Fixed-Rate HELOC Solution
Locking in a fixed-rate HELOC can give you peace of mind, as you'll know exactly how much you pay monthly. And when you know how to find the best HELOC with a fixed rate, you'll have the financial security you need.
At Hitch, we make it easy to find and secure a fixed-rate HELOC with competitive rates. With 10, 15, 20. 25 and 30-year fixed rate options, you can choose the best term for your needs.
And that's not all - here's why borrowers are partnering with Hitch for their fixed-rate HELOC:
- Apply in minutes, and get your funds in days: Hitch makes the application process quick and hassle-free so you can access your funds promptly. You can even find your rate online with a few clicks.
- Access up to 90% of your home equity: This can be valuable for those needing a substantial amount of money for various financial needs.
- Borrow up to $500,000: Hitch offers a generous maximum borrowing amount, which makes it suitable for diverse purposes.
Find Your Best HELOC Fixed-Rate Option Today
Researching, comparing, and evaluating various fixed-rate HELOC lenders is essential for making the best decision for your financial needs. By considering factors like interest rates, fees, eligibility requirements, and available loan terms, you can feel confident in selecting a lender that aligns with your goals.
And with Hitch on your radar, you have a trustworthy option for accessing the home equity you need with a fixed interest rate that provides predictability for the future. Want to learn more and apply? Get started with a click today.
We’re here to help you find the perfect HELOC for your needs - and make sure it’s a decision you won’t regret! Get started with Hitch today.
Borrow from yourself, not the bank!
See your equity and HELOC rate in seconds
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.