As the name implies, an emergency mortgage is a short-term loan designed to provide quick financial aid to people in the event of unexpected emergency situations. In recent times, the number of people taking out emergency mortgages to get through difficult times has significantly increased. One of the key benefits of obtaining this type of loan is that you can use the borrowed amount for any purpose, including medical bills, car payments, rent, mortgage payments,credit card debt, student loan debt, etc.
You can obtain an emergency loan from a lender in various ways, including –
- A home equity line of credit
- A home equity loan
- A charge on the credit card
- An unsecured loan
One of your key considerations when applying for an emergency mortgages should be the “Collateral” you pledge for the loan. For instance, pledging your home (if you’re using a home equity loan or line of credit) may not be the right decision for you because of certain reasons. In this case, you can consider taking out an unsecured personal loan and reduce the risk factor.