Emergency funds are absolutely necessary whether you are employed or you are in business. If you apply for a loan, it may take long for the loan to be approved and by the time it does get approved you are already in deep financial trouble.
The easiest way to get a financial lifeline is to do home lending/ credit services. It works on the premise that you can get funds by using your primary residence as security for your debt. You can apply, have it approved but then use it only when you need it. The interest rates vary and with many service providers competing in this segment, the rates are on the way down.
You never know when you will need emergency funds
It is a fact of life that emergency situations just pop up out of nowhere. Yes, you prepare of this but on a limited scale. You may have a few bills hidden on the shoe box inside your room, or a few hundred dollars in your savings account. But that’s all you have.
If a major financial need suddenly pops up, that is usually the time that you apply for a loan or mortgage. By that time, you will have lost valuable time and opportunities. Your best option might be to get in touch with a financial service provider. There are many who operate online and you can make your initial transactions, like having an estimated home valuation in the channel.
You get many options with this type of facility. The amazing thing about this financial market that use service providers is that fact that you get to have an assortment of options. If one option does not fit you, then you move to the next option. First, it is a variable line of credit.
This means that the interest rates vary every day. If you believe the rates are high today and will go down tomorrow then do not use your line of credit today but wait for tomorrow. It is fairly simple. The amount of your variable line of credit will depend on your home current market value minus any mortgage that you have. If your home is clean from any debt then you can get the whole amount of the current market value as your valuable line of credit. This is how your service provider will explain it.
You can use it to finance major expenses
There are many uses of home lending/ credit services. The most visible though is to finance major expenses. The list can be long. You can purchase another home that you can rent out from the proceeds, you can do remodeling thereby increasing the value of your present home or you can use it as capital for a new business venture.
Your service provider can help you get a good market valuation so that you canincrease the total amount of your credit line. Other uses that you can think of are also applicable. Your service provider can also give you tips on how to maximize usage of your credit line. Since you will be paying interest, it would be wise to use it for something whose value will increase.
You can use it to start or expand your business
If you are currently doing a home business or you have an existing venture, the proceeds of the credit line can be very useful for business expansion. Your service provider can assist you in making the calculations needed to come to an informed decision. Home lending/ credit services can be very useful if you do it right.