Buying a house is exciting, but let’s be honest, the idea of taking on a mortgage can be terrifying, especially if you're someone like me who thinks What if I lose my job? What if I can’t make the payments?
Even with a stable income, I constantly worry about waking up every month with that heavy feeling of debt. So, instead of spiraling, I decided to change my mindset and create a mortgage "backup plan":
Plan A: Pay mortgage with ROI from your investments like Bonds, Stocks, Etc.
Plan B: If above is not possible, Pay the mortgage with your main job (The default. If this is working, great, but I needed to be ready in case it stops)
Plan C: If above is not possible, Rent out a room in your home (If you have the space, rent it, even short-term on Airbnb or monthly to a student/remote worker. It’s passive(ish) income that can help cover part or all of your mortgage)
Plan D: If above is not possible, Use income from a side hustle (Freelance work, online gigs, a weekend job, even a small extra income stream can act as a cushion if your main job disappears)
Plan E: If above is not possible, Tap into unemployment benefits (Where I live, government unemployment plan can cover up to 70% of your previous income for up to 12 months)
Plan F: Contact your bank to pause/renegotiate the mortgage (Many banks offer temporary hardship programs, they may allow you to reduce or pause payments for a set period)
Plan G: If above is not possible, Use emergency savings (Having a six month COL emergency fund as a safety net to keep you afloat temporarily)
Plan H: If above is not possible, Sell high-value non-essentials (Car, Jewlery, etc)
Plan I (Last Resort): Sell the house (Not ideal, but it's better than going into foreclosure.)
[link] [comments]
source https://www.reddit.com/r/RealEstate/comments/1ls5qoz/mortgage_backup_plan/
Comments
Post a Comment