Life is unpredictable. From illness to divorce to job loss, many factors can take a toll on your income that can leave you struggling to pay your monthly mortgage payments on time. If you have lost your job and are unable to make your monthly mortgage payments, job loss mortgage insurance can help cover those […]
5 Strategies to Safeguard Your Mortgage in Missouri
If you recently got a mortgage in Missouri, you may want to consider preparing for any potential financial disasters in the future. It is a good idea to start developing financial habits before you get in trouble. You want to be able to keep track of your finances and make sure you are spending less than what you are earning. While living in an unstable economy, the responsibility of owning a home can raise some concerns. It is smart to create a backup plan if anything should arise. For instance, a person could lose their job, which would prevent that person from making payments. Another situation might be an illness or an accident, which might prevent you from working. Even though it is difficult to believe that these situations could happen, it is always good to know your options. Setting up an emergency plan will give you some wiggle room if something unforeseeable and unfortunate were to happen. This will lessen the fear of losing your home.
There are 5 ways that you can help safeguard your mortgage in Missouri.
The first strategy is to start an emergency fund. This will give you some time to figure things out in case you run into financial difficulty. Experts have varied opinions on how much you should save. The minimum amount should be 3 to 6 months of pay, which will allow you to pay for your expenses and live comfortably. You want to make sure this fund is not easily accessible. It is tempting to burn the money on a new car or a last-minute trip. Even people in high debt should have an emergency fund.
Buy Less Than You Can Afford:
Another option to protect your home is to get a mortgage in Missouri that is less than what you can afford. This will give you the flexibility to make your payment on tight months or make an extra payment in a really good month.
Refinance Existing Mortgage:
The third strategy is to refinance your mortgage in Missouri, which may bring down your payments. If you are considering this option, it is better to refinance now and not wait until you get laid off.
Job Loss Mortgage Insurance:
The fourth strategy is to get “job loss mortgage insurance.” However, keep in mind that there is a gap between getting your policy and when it actually pays out. This gap prevents people who know they are going to lose their job from taking advantage of the insurance. Another thing to be aware of is that this policy will only cover the minimum amount to keep your home from going into foreclosure. It is still a good idea to have an emergency fund.
Late Payment Options
The final strategy is to do some online research on your lender’s policy for late payments. Some lenders may let you alter your payment schedule if you are not able to meet the deadline. Other lenders don’t charge late fees or report the late payment to the credit bureau.
Finding a lender that is able to work with your financial situation is important. Contact a Cornerstone professional and let us help you get your finances on track.