[The following is a guest post]
When you are a homeowner, you will inevitably need a large sum of cash. This could be to do work on the house, to consolidate your debts, to take a much needed holiday, or a variety of other reasons. Borrowing money always seems like it will be a complicated and stressful process, but it does not have to be.
Options
You may think that turning to your friends or family members will be a good solution, but this probably is not a great idea. Borrowing money from those close to you can drastically change the dynamic of your relationship, and until you are able to pay them back it can be quite an awkward situation.
A route that you can take instead could be something called a secured loan (also known as a homeowner loan). This is a type of loan that is secured against your house. This means that as long as you are a homeowner with an existing mortgage then you should be able to get the money you need for home improvements, buying a new car, etc.
Most secured loans are capped out at 85% of the available equity in a home. For example, if you have a $250,000 house and owe $150,000 more on the mortgage, then you have $100,000 of equity. Most likely, a loan would be limited to $85,000 or less. Repayments for this loan will vary based on the reason for the loan.
Finding the Right Home Loan Provider
It is important though that you find the right home loan provider so that you can quickly get the money you need at terms that you can accept. Some loan providers, like 1st Stop, allow you to fill out applications online, and will get back to you as soon as possible. Providers like this make the process as simple and stress free as possible. You can also visit the main branches of any credit unions or banks in your area or call ahead.
Overall, a homeowner loan is a way better way to handle a money issue than depending on those you love.