They say that money makes the world go around, and you know what, they couldn’t be more right. It’s nice to think that the world is centered around something other than money – love, perhaps, but the truth is it’s not. The fact is that money makes the world go around, and so, is at the center of most of our lives, whether we like it or not.
Of course, for a lot of people money isn’t something that needs to be thought about. The reason for this? If you’ve got money, you don’t see money (or a lack of money) as being a problem. It’s only when you don’t have the money that you need to get by, that money becomes an issue. For some people, money will never be an issue, for others of us, money will always be a problem.
The world isn’t a fair place, not in terms of wealth anyway. While some people are born into money and get a fantastic start in life, others of us are born into families that struggle to get by, and so, we end up on the same financial path as them, struggling to make ends meet, it can feel like financial hardship is genetic. If you’re struggling to make ends meets, the good news is that your home could act as a financial buffer, here’s how:
How can your home help with your financial problems?
When it comes to how your home can act as a financial buffer, there are various options. These include creating a greener home and saving money on energy use, selling up and downsizing, or swapping to a refinance mortgage, for instance. A refinance mortgage is a popular choice, as if you look at current VA refinance mortgage rates today, you will see that you can get a great amount of money via this loan type, helping you to get back on track financially. Another popular choice for using your home as a financial buffer is to offer it as collateral for a loan – if you can’t take out a loan without putting some up against it, your home can come in handy.
Is it risky?
One reason that a lot of people aren’t happy to use their homes as a financial buffer when times are tough is because they don’t want to risk losing their homes. The fact is that if you refinance your home or use it as collateral to support a loan application if things go pear-shaped, you could lose your home. However, you would have to miss a lot of loan payments for that happen, it’s not just a case of missing one repayment and bam your home is repossessed. Using your home as a financial buffer could potentially be risky, but if you’re smart about how you use it, you can limit the element of risk.
What are your other options?
The good news is that if times are tough, you most probably have some other options to consider. These could include borrowing money from a friend or relative, taking out a small loan from the bank or another lender, or perhaps asking your boss for an advance on your pay. If you’re not able to use your home as a financial buffer, that doesn’t mean that you can’t get your hands on the funds you need to get things back on track, it’s just a case of being willing to exhaust all avenues open to you.
There you have it, a guide to using your home as a financial buffer.
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