Released on: July 22, 2008, 3:58 am

Press Release Author: David R. Newby

Industry:

Press Release Summary: As David Newby, ex-loan officer and author of Why Didn\'t Anyone Teach Me This sees it, \"It\'s saddening how under informed people are about the financial risks they are taking by following traditional advice when it comes to protecting their #1 asset- their homes.\"

Press Release Body:
The recent flooding along the Mississippi River and the current fires in California highlight a growing trend in America- more and more natural disasters are destroying Americans\' homes, and many are needlessly losing their home equity. A few simple strategies can help you avoid needlessly risking your own home equity.
As David Newby, ex-loan officer and author of Why Didn\'t Anyone Teach Me This sees it, \"It\'s saddening how under informed people are about the financial risks they are taking by following traditional advice when it comes to protecting their #1 asset- their homes.\"
\"Traditional thinking limits us in many ways. For example, most of us are taught to pay our house off. It\'s good advice as far as paying less interest, but at what risk? Home equity is a large chunk of most Americans\' total wealth, and for most people it\'s needlessly at risk of being lost due to a natural disaster or reduced income due to injury or job loss.\" says Newby.
It is a given that you can\'t control the weather or if you might be out of work for awhile, but you can control how liquid your home equity is. Have access to it while everything is fine. refinance it to 100% LTV or have a Home Equity Line of Credit (HELOC) open on it. Just make sure you get one that is convertible to a fixed rate second mortgage if you have to use more than 50% of it.
If a natural disaster swings through your area, deposit your entire HELOC in your bank account as part of your preparation plans. That way the bank is risking not getting paid by the insurance company instead of you, and you\'ll have extra cash on hand to pay your bills as you recover. A HELOC can come in very handy if you\'re out of work temporarily as well.
\"I tell the story in my book of a gentleman who called me to refinance his home when I was a loan officer. He had been laid off and had depleted his savings. Unfortunately I couldn\'t help him because he had a recent late payment on his mortgage, and he ended up losing all $100,000 of equity he had in his home because he didn\'t have access to it BEFORE he needed it\" Newby recounts. \"Every American that should avoid this potential danger with a little preparation.\"
When the storms of life come, either through financial emergency or natural disaster, having access to your home equity will put you in a much better position to weather the storm.
Newby -- author of \"Why Didn\'t Anyone Teach Me This?\" -- is a very outspoken financial strategist who helps Americans avoid 4 key million dollar mistakes and retire in comfort by more effectively and safely positioning their existing wealth. You can download a FREE sample of his book at www.FinancialPlanning202.com.


Web Site: http://www.YourProsperityPower.com

Contact Details: Name: David R. Newby

Address: 3319 Greenfield Rd #369

City/State/Zip: Dearborn MI 48120

Country: United States

Phone: 248-663-4026

Fax: 248-927-0770

Email: DavidNewby@FinancialPlanning202.com