Unlocking the Benefits of Home Equity and Applying Appliance Financing
Apr 11, 2023
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On this article:
- What is Appliance Financing?
- Who Uses It?
- How To Take Advantage Of It
- Pros and Cons of Appliance Financing for Home Upgrades
Introduction to Appliance Financing
With appliance financing, you can unlock the benefits of home equity and make improvements to your home without sacrificing your budget. Whether it's replacing an old washing machine or a fridge, Hitch makes it easy for you to spread out payments over time so you can upgrade your home appliances without going into debt.
What is Appliance Financing?
Appliance financing is a form of loan used to fund key household purchases such as refrigerators, ovens, washers and dryers. It allows homeowners to spread out payments on large-ticket items over time according to a predetermined schedule – helping them budget for future expenses in an organized manner.
It is important to note that unlike other forms of loans such as mortgages or personal loans, appliances are typically not used as collateral when securing an appliance financing loan – making them less risky than traditional loans since they do not become a part of one’s financial obligations in cases where default occurs.
Who Uses It?
Appliance financing is used by both individuals and businesses alike – particularly small business owners who want to purchase expensive equipment but cannot afford the large outlays that come with it. Other common users include those who may be undergoing remodeling projects in their homes, want new kitchen appliances for upgrades or simply need quick access to cash in order to meet short-term needs like car repairs or medical bills.
How To Take Advantage Of It
The best way to secure an affordable appliance financing loan is by shopping around and comparing various deals offered by different lenders. Sites like USAA and LendingTree make it easy for borrowers looking for financing options without having to visit multiple banks or credit unions. Once you have determined what your budget range is, take some time researching lenders and reading reviews from past customers in order to find the best option for you. Additionally, you should also factor in things like interest rates, repayment terms and any applicable fees when making your decision.
At the end of the day appliance financing can be a great tool for those looking for added flexibility when purchasing big-ticket items such as kitchen appliances without having the hassle of immediate payment up front. By taking advantage of today’s competitive lending environment homeowners can get access to quality appliances while still managing their budget – allowing them more opportunities down the road while still living comfortably now!
Pros and Cons of Appliance Financing for Home Upgrades
Appliance financing is a great option for those who need to upgrade their home appliances but don't have the funds upfront. With appliance financing, you can get the appliances you want and need with manageable monthly payments. Some of the advantages of appliance financing include:
• Flexibility – You can choose a repayment plan that works for your budget
• Fast approval times – When you apply online, you can usually get an answer within minutes
• Peace of mind – Knowing that you only need to make one payment instead of paying out-of-pocket upfront
However, there are a few downsides to consider when applying for appliance financing such as:
• Credit checks – Depending on the lender, you may need to undergo credit checks
• Higher interest rates – Financing options typically come with higher interest rates than outright purchasing
• Limited options – While some lenders offer multiple financing options, others will have limited choices
Upgrade your home appliances without worry and enjoy the peace of mind that comes with using Hitch's appliance financing options. Get the latest appliances you want and need without breaking the bank – it's a win-win situation!
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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.