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Unlocking your home's equity


Jan 20, 2023



What is a HELOC and how do you get one?

A HELOC, or Home Equity Line of Credit, is a loan that uses the equity in your home as collateral. It is essentially a second mortgage, but with some key differences. A HELOC typically has a much lower interest rate than other loans because the lender knows they have your home as collateral.  

Another key difference is that a HELOC is a revolving line of credit. This means that you can borrow the money, pay it back, and then borrow again up to your credit limit. This flexibility can be helpful if you have an ongoing project or need access to cash on a regular basis.  

Accessing your home equity with a HELOC is generally quicker and easier than refinancing your mortgage. And, unlike a personal loan or credit card, the interest you pay on a HELOC may be tax deductible.  

Unlocking your home's equity

To get a HELOC, you will need to apply with a lender. Because home equity loans are collateralized by your home, they tend to have lower interest rates than other types of loans.  

Online lenders typically have less overhead and can pass those savings on to you in the form of lower interest rates. So, if you’re considering a HELOC, it’s worth checking rates with an online lender who specialize in HELOCs and can therefore give lower rates.  

There are a few things to keep in mind when shopping for a HELOC:

  • How much equity do you have in your home?
  • What is the value of your home?
  • How much can you afford to borrow?
  • What is the interest rate and how does it compare to other loans?
  • What are the fees associated with the loan?

HELOCs can be used for a variety of purposes, including home improvements, debt consolidation, or major expenses like tuition or medical bills.  

Eligibility for a HELOC generally depends on three things:  

  • How much equity you have in your home  
  • The value of your home  
  • Your credit score  

If you have good credit and enough equity in your home, a HELOC may be a great option to consider. Fill out our online pre-qualification to find out how much you may be able to borrow.

Before you apply for a HELOC, it’s important to understand how they work and compare them to other types of loans. This will help you choose the right loan for your needs and avoid any unwanted surprises down the road.

Do you have any questions about HELOCs or home equity loans? Email us at support@usehitch.com and we are happy to connect you with a loan officer who can answer any questions you might have.

Also read:

7 reasons you should get a HELOC

Hitch, Inc. Mortgage State Licensing Details


Hitch: The fastest way to access your home equity

Is a HELOC Right For You?

Home Equity Line of Credit (HELOC) Payment Calculator

10 things you can do with a HELOC

Bank: 2023 Home Equity Review

A Comprehensive Guide to Getting a HELOC on an Investment Property

Unlocking Your Home's Equity: Are HELOC Rates the Same as Mortgage Rates?

HELOC Soft Pull: What It Is and Why It Matters

Maximize Your Returns: How a Home Equity Loan or HELOC Can Boost Your Investment or Rental Property

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Equal Housing Lender
Hitch, Inc. 23833672158 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 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.