Data from the Bureau of Economic Analysis (BEA) shows that despite our personal income increasing, our personal savings has decreased. On average, the typical American family is spending more than it earns.

So without a savings emergency fund where do people turn on a rainy day? A mortgage can sometimes allow you to have an emergency fund available and ready for you. As in the case of unemployment, if you do not have the funds, you may not be able to pay your mortgage monthly and will end up in foreclosure, likely resulting in complete loss of all equity, no matter how much you had. Theres countless other reasons to need these funds such as medical emergencies, natural disasters, or even major life events such as a child's college tuition.

If you do not have an emergency fund, and you have some equity in your home, you need to look into your mortgage options now, before it is too late. To do this, get with your financial planner or a Certified Mortgage Planning Specialist who can help you decide which strategy is best for you.  Often you can take out an equity line that has draws available so the balance is $0 until you decide to use the credit line.