Equity borrowing - Your real estate as cash.

2007-08-09 11:55:54

( Financial )



Opportunities and emergencies can come unexpectedly. If any of them passes by, it is always better to have some cash on hand.

These days, having a savings plan is almost hard to do since your salary may not allow you to do so.

Luckily, there are available options to get fresh funds.

You can start by getting cash advance from your office. This can only happen if you are a regular employee. The cash advance will depend on your salary and length of service.

You can also cash in on your insurance coverage. Insurance companies are willing to give you cash after surrendering your policy. The only downside of this is that you will only get a portion of the true value of your coverage.

Selling used items can also help. Disposing some of your old things will not only generate funds but will also lessen the clutter in your house. Nevertheless, proceeds from such undertakings may not be sufficient and selling old items may take longer with no guarantees whatsoever.

Other valuable things such as jewelries can also be sold or pawned. They are easier to convert to cash. The only problem with this scheme is that oftentimes jewelries have some sort of sentimental value attached to them.

These said options can give you additional cash but if you needs are much bigger, then equity borrowing may just be the thing for you.

Equity borrowing is simply getting a loan from any financial institution using your real estate as collateral.

Equity borrowing is almost a done deal since there is a tangible asset involved.

Although debt and equity financing may look viable, redemption of your real estate property may take awhile. This is because lenders tend to extend the payment period to make the deal more attractive. Under close scrutiny, you will find out that you are paying much more than what you actually borrowed. Approval of any debt equity will also depend on your credit records.

So before applying for an equity loan ask yourself if you are willing to let go of your home.


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