Financial advisors recommend that every family has a savings account or some other financial account that is sufficiently funded to cover a few months of household expenses in case of an unexpected situation. If you own a home and have built equity in it, you have that safety net available to you. You just need to get it set up ahead of time with a home equity line of credit. If you wait until you’re facing unemployment or another financial setback, you could find it more difficult to obtain this, so now is the time to act.
The good news is that obtaining a home equity line of credit doesn’t mean you have to use the funds right away. This makes it a good option if you want to be prepared for the unexpected. There are also other situations where you could consider applying for this type of loan. For example, if your children will soon graduate high school and plan to go to a university but the money you have set aside for that isn’t quite enough, a home equity line of credit could be a better solution than an educational loan.
Another reason to get a home equity line of credit is to consolidate other debts. If you have credit card balances, you’ll save money because this type of loan has a lower interest rate than what you probably have on your credit cards. A home equity line of credit can also be used to improve your home, pay off medical bills, or anything else you have in mind.
If you would like to know more about a home equity line of credit, reach out to us at the BRM Lending Team. As a mortgage broker, we can help you get the best terms possible and walk you through the application process. Give us a call today to learn about various personal borrowing solutions and how they could be the solution you are looking for to meet today’s expenses and tomorrow’s.