Life tends to deliver surprises along the way, like unexpected illness, job loss, relocation (for work, or to care for a relative), and major bills for which you’re not prepared. Whatever the case, you may find yourself in a situation where you need money now. This can be a very stressful feeling, not knowing how you’re going to get the funds you need or how you’re going to pay the money back.
There are a few options for obtaining a large sum of money in a fairly short period of time. You can take out a personal loan, however interest rates for these can be as high as 6% or more, and you must have decent credit. The terms generally require repayment within one to five years, and you could end up with a monthly payment of $200-300.
If you have some equity in your home, you could take out a HELOC (Home Equity Line of Credit). Interest rates for this type of loan vary, and are currently around 5%. The payback period can be up to 20 years, however you may have a significant balloon payment due at the end, depending upon the terms of the loan. If you need cash fast, this may not be the quickest route as processing can take over a month.
You may also consider selling your home to a real estate investor like me. This is a fast, painless way to get money into your hands for those unexpected emergencies.