Why Hitch?
Jan 19, 2023
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Table Of Constance
- #1. Introduction
- #2. HELOCs, a Secured Borrowing Solution for Homeowners
- #3. What Is The Solution?
- #4. Enjoy a Convenient, Easy, Secure Digital HELOC Process with Hitch
- #5. Access Your HELOC and Cash Bundle Quickly with Hitch
- #6. Competitively Low Interest Rates on Hitch HELOCs
For any consumer who has some sort of asset that they can borrow against, unsecured borrowing is not a great financial solution. However, unsecured borrowing has dominated traditional consumer lending because innovation has made it easy to access.
#1.Introduction
An example of unsecured borrowing is credit cards, which we have seen growing use in recent years. Not being backed by any assets, unsecured borrowing comes with very high interest rates that we’ve all gotten used to as the market norm.
Unsecured borrowing lenders do a great job at hiding the amount of interest you’re really paying on your principal balance. That means, when you have a balance that rolls over on your credit card, the company is not transparent about the 20% interest being applied to your balance.
By opting for secured borrowing, you can access lower interest rates without putting anything up because you have the asset to back your position as a borrower.
#2.HELOCs, a Secured Borrowing Solution for Homeowners
If you are a homeowner seeking a secure, low-interest form of borrowing, a great option is to leverage a home equity line of credit (HELOC). A HELOC is a loan backed by your home with average rates ranging between 5% and 10%, or lower if you have strong credit.
#3. The Downfalls of Traditional HELOCs
However, many homeowners do not take advantage of a HELOC because they are traditionally more difficult to access — the approval criteria are strict, and there is friction in the application process. When you go to a bank for a HELOC, you’ll face a turnaround time of about 40 days. The process is filled with loops to jump through, and the in-person application requirements and paper processes make for a slow and tedious experience.
Because of these setbacks and the general lack of access to HELOCs, many homeowners opt for those high-interest, unsecured credit cards — even though they introduce many downfalls of their own.
#4.What Is The Solution?
Hitch understands the needs of consumers, and views HELOCs as the best and most secure way to access capital. In order to make this extremely valuable financial product more accessible, hitch is streamlining the HELOC process by offering a fast, easy, and safe fully-digital process.
Below is a closer look at how Hitch address the pain points typically associated with traditional HELOCs, along with the other benefits we’ve created to provide borrowers with the best experience and overall outcome.
#4. Enjoy a Convenient, Easy, Secure Digital HELOC Process with Hitch
To make it easier for you to access your HELOC, Hitch has digitized the entire process — from shopping online, to submitting your application, to actually receiving your funding. That means there are no long waiting periods.
Our HELOC product is also incredibly flexible. When you apply for a HELOC with Hitch, you don’t need to have perfect credit. We’re looking for everyday credit scores, and we offer a quick and easy pre-qualification process.
The best part is you can complete the digital borrowing application in minutes from any web or mobile device using our fast and easy digital app. After you’ve taken your first steps, you can continue your HELOC journey on the app — from managing your application to accessing your HELOC.
To provide the highest level of security, our online app gives you a digital notary to assist with document verifications. If you have any questions throughout the process, you will be able to speak with your dedicated loan officer who can provide guidance at any time.
#5.Access Your HELOC and Cash Bundle Quickly with Hitch
Hitch offers 10x faster approval and funding than banks by leveraging our direct-to-consumer digital app; we’re able to streamline loan underwriting and the process of deploying funds once the HELOC has been approved.
With low upfront fees, Hitch provides you with extremely fast access to cash, with little to no out-of-pocket expenses. To put you in greater control of your financial future, Hitch HELOCs offers an interest-only payment period for ten years — helping you to lower your monthly expenses.
#6. Competitively Low Interest Rates on Hitch HELOCs
With a HELOC from Hitch, you will be able to borrow up to 95% of your home’s value minus your current mortgage balance. Hitch HELOC rates start at competitively low variable APR, giving you the lowest cost of capital by leveraging the asset you already own — your home.
At Hitch, we’re dedicated to providing you with the tools you need to spend your money knowledgeably. Not only do we offer low rates, but we’ve also built out financial tools to help you use your capital in a way that can help enhance your standard of living.
If you’re interested in learning more about how Hitch is making HELOCs fast, frictionless, accessible, and easy, click here!.
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Hitch, Inc. #2363780
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 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.