Upgrade Your Home: A Guide to Smartly Using Your Home Equity for Remodeling
Mar 31, 2023
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Are you considering a home renovation project but not sure how to pay for it? One smart way to fund your home upgrades is by using your home equity. By tapping into the equity you have built up in your home, you can finance your renovation project at a lower interest rate than other types of loans. In this guide, we will show you how to smartly use your home equity for remodeling with the help of Hitch.
What is Home Equity?
Home equity is the value of your home that you actually own. It is the difference between your home's current market value and the outstanding balance of your mortgage. As you make mortgage payments over time, your equity increases. You can use your home equity to finance home renovations, consolidate debt, or cover unexpected expenses.
What is Hitch?
Hitch is a platform that connects homeowners with lenders who offer home equity loans and lines of credit. Hitch makes it easy to compare loan offers from multiple lenders and find the best option for your needs.
Smart Ways to Use Your Home Equity for Remodeling Here are some smart ways to use your home equity for remodeling:
1. Kitchen Renovation: Kitchen renovations can be expensive, but they can also add significant value to your home. Use your home equity to finance a kitchen renovation and enjoy the benefits of a modern and functional kitchen.
2. Bathroom Remodel: A bathroom remodel can also be a great investment in your home. Use your home equity to fund your bathroom renovation project and create a spa-like oasis in your home.
3. Outdoor Upgrades: Enhance your outdoor living space with a deck or patio. Use your home equity to finance outdoor upgrades that will allow you to enjoy your backyard to the fullest.
4. Energy-Efficient Upgrades: Make your home more energy-efficient by installing new windows, upgrading your insulation, or replacing your HVAC system. Use your home equity to finance these upgrades and save money on your energy bills.
5. Add a Room: If you need more space in your home, consider adding a room. Use your home equity to finance the construction and create a new living space for your family.
The Hitch Way to Upgrade Your Home
Hitch makes it easy to finance your home renovation project with a home equity loan or line of credit. Here's how it works:
1. Apply for a loan: Apply for a home equity loan or line of credit through Hitch's online platform. You'll be asked to provide some basic information about your home and your financial situation.
2. Compare offers: Hitch will match you with lenders who offer home equity loans and lines of credit. You can compare loan offers from multiple lenders and choose the best option for your needs.
3. Close the loan: Once you've chosen a lender, you'll work with them to close the loan. The funds will be disbursed to you, and you can start your home renovation project.
Upgrade Your Home Today
Using your home equity to finance your home renovation project can be a smart financial decision. With Hitch, you can easily compare loan offers and find the best option for your needs. Upgrade your home today and enjoy the benefits of a modern and functional living space.
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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.