Home Equity For Hard Times
A looming layoff, a business breakdown, a black hole of bills, at some point, the initial shock of a financial dilemma turns to more rational thoughts of how to manage your monetary misfortune.
If you happen to be a homeowner, tapping into your home equity is on the list as an option, but that includes the pain of having to get a loan and making payments, so you may put it off while contemplating another solution.
Tick tock, as the game clock winds down, your home equity loan option may be in jeopardy of a penalty flag. Consider the following procrastination penalties:
If you are anticipating a potential loss of income from a job layoff or business slowdown, there is a possibility of not qualifying for a home equity loan if lenders are not able to verify a stable source of income to meet the debt ratio requirement. The best time to apply for a loan is before the loss, otherwise, you have to find a no income qualifier loan, which is limited to borrowers with substantial home equity and very good credit.
If your credit takes a hit because of recent late payments, you can expect higher rates and closing costs. Creditors report late payments that are over 30 days past due, which drops Read more…
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