Bad news- if you put your emergency funding for home repairs into a long-term savings portfolio, you’ll face hefty fees if you try to pull some cash out early.
Since you’re here, you probably already know that. The need for emergency home repairs always seem to come at the most inconvenient times and tend to be a lot pricier than you may have expected.
Don’t give up all hope just yet, we’ve come up with a complete list of ideas to start generating cash flow to help with home repairs.
1. Research Installment Loans
If you have a bad credit score, getting a loan through your bank isn’t going to be easy. Even if you did manage to get a loan through your bank, it may have not been enough money to cover the entire repair.
Installment loans allow you to borrow a set amount of money and make payments towards the amount you borrowed. The money that you borrowed for your mortgage is a type of installment loan, in which you knew how much money you were going to be paying towards the loan on a monthly basis.
2. Insurance Policies To Help With Home Repairs
Don’t forget about your insurance policy and don’t assume that your emergency isn’t covered. If your home emergency was caused by a storm or anything weather related, there’s a good chance that your insurance policy will at least cover some of the cost of the damages!
3. Ask About Your 401K
Depending if the company that you work for has benefits, you may be able to pull money from your 401K to pay for your emergency home repairs. This is a great option to go with if you have a poor credit score or aren’t interested in increasing your bills.
Since the money in your 401K is technically already yours, you don’t have to worry about a credit check, a ton of paperwork, and waiting around for approval.
The only downside to taking money out of your 401K is that your employer may require you to pay back the money into your 401K before you leave your employment with that said company.
4. Don’t Forget About Home Equity
Imagine a home equity loan like a credit card, where you have a credit loan, monthly payments towards your balance, and an open end term. The only thing is, is a home equity loan can only be used towards costs that are going towards your home.
While you can use a home equity loan to go towards repairing an emergency, you can also this type of loan for remodeling your home!
Wrapping It Up
Finding the money to help with home repairs shouldn’t stress you out. Hopefully, you’ve found some guidance in our recommended programs to help pay for home repairs!
Do you feel like we missed an idea to generate emergency funding for your home repair? Leave a comment down below sharing the best way you’ve found to come up with extra cash!