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When is a HELOC a Good Idea? Discover the Advantages of Hitch's HELOC


Apr 27, 2023



Homeowners looking for a flexible financing solution often wonder, "when is a HELOC a good idea?" A Home Equity Line of Credit (HELOC) is a valuable financial tool that allows you to tap into your home's equity for various purposes. In this article, we'll explore the situations when a HELOC can be beneficial and the advantages of choosing Hitch's HELOC product for your borrowing needs.

Key Situations When a HELOC is a Good Idea

1. Home Improvements and Renovations

A HELOC is an excellent choice when you need funds for home improvement projects or renovations. By investing in your property, you can increase its value and potentially build more equity over time. Hitch's HELOC provides you with the flexibility to borrow only the amount you need, giving you better control over your expenses.

2. Debt Consolidation

If you have high-interest debts, such as credit card balances or personal loans, a HELOC can be an effective solution for debt consolidation. With Hitch's competitive rates, you can save on interest costs and streamline your finances by combining multiple debts into a single monthly payment.

4. Emergency Funds

Life can be unpredictable, and having access to emergency funds is essential for financial stability. A HELOC can serve as a financial safety net, allowing you to access funds quickly during unexpected events, such as medical emergencies or job loss.

5. Education Expenses

A HELOC can be a valuable resource for financing education expenses, such as tuition, textbooks, and living expenses. By using your home's equity, you can invest in your or your children's education without incurring high-interest student loans.

Benefits of Hitch's HELOC

Choosing Hitch's HELOC product comes with numerous advantages, including:

1. Competitive Rates

Hitch offers competitive interest rates based on your credit score and other factors, ensuring you receive the best possible rate for your home equity line of credit.

2. Flexible Repayment Options

Our HELOC features flexible repayment options, allowing you to make interest-only payments during the draw period and principal-plus-interest payments during the repayment period. This flexibility helps you manage your monthly budget effectively.

3. Easy Access to Funds

Accessing funds through Hitch's HELOC is convenient and straightforward. You can withdraw money using online banking, our mobile app, or a dedicated credit card, making it easy to manage your home equity borrowing.

4. No Prepayment Penalties

Hitch's HELOC comes with no prepayment penalties, meaning you can pay off your balance early without incurring additional fees. This feature provides you the freedom to manage your debt as you see fit.


A HELOC can be a good idea in various situations, such as home improvements, debt consolidation, emergency funds, and education expenses. By choosing Hitch's HELOC, you'll benefit from competitive rates, flexible repayment options, easy access to funds, and no prepayment penalties. To learn more about our HELOC product and how it can help you achieve your financial goals, contact our team of experts at Hitch today.

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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.