In spite of the economic flavor, now is the time to consider borrowing money

Online, June 15, 2010 (Newswire.com) - With interest rates just about as low as they can go, many financial experts are saying that now is the time to borrow money, despite record numbers of home foreclosures and feeble job growth - and the additional funds can be used to buy financial assets or boost cash reserves.

One of the ways to work borrowed money in a smart way is by putting your mortgage to work for you. Moving out on a risk curve can yield big savings, but be sure that you find a mortgage that will limit your interest rate risk.

If you have considerable equity built up in your home, you may want to consider cash-out refinance. If you use the money as an investment, you could come out ahead. The risk would be that the investment returns are lower than the new mortgage interest rate. Experts recommend using the money in a well-diversified equity portfolio, split among U.S. and international markets.

Investors should also take a look at margin loans. These are loans in which investors buy stocks by borrowing up to 50 percent of the value of the securities in their brokerage portfolio. Be beware: margin calls are subject to market values, and if there is a dip, your brokerage firm could sell your shares to raise capital in the account, or require you to deposit money immediately.

Credit card companies are trying to attract new customers following reform legislation that reins in abusive lending practices by forcing them to limit their interest rate increases in existing balances. In an effort to gain new customers, the companies have created 0 percent financing offers, and offering longer terms and lower introductory rates for balance transfers.

Another area in which investors are looking is auto loans, where rates are at an all-time low. Big banks are offering rates below 5 percent on both new and used automobiles. Car makers are offering 0 percent and low annual percentage rate loans instead of cash back incentives.

Another area from which investors are drawing needed funds are short-term unsecured loans. Personal loans or small business loans, from a few hundred dollars to a few thousand dollars, can be used to assist you with your financial goals. Click here to learn more.