Lody and David Cooper - Cooper Fine Properties LLC | Phoenix, AZ Real Estate

Owning a house shouldn't be a burden. Buying a house shouldn't lead to sleepless nights or arguments with your mortgage co-signer. You also shouldn't feel pressured to work 10 or more extra hours a week to build enough overtime pay to cover your next mortgage payment.

Preparation can keep you ought of mortgage trouble and inside your home

You shouldn't have to feel burdened or lengthen your work day just because you bought a house. But, that's what could easily happen should an unexpected event occur. When it comes to unexpected events and personal finances, ask yourself if you have enough money to successfully deal with:

  • Automobile repair bills
  • Medical emergencies that require you to go deep into your wallet to cover the deductible that's associated with your particular type of health insurance
  • Household appliance repair costs - You might think that you can delay fixing appliances.But, let your refrigerator go out or your air conditioner shut off at the heart of summer and you might be tempted to pull out your credit card to get the appliances fixed.
  • Pregnancy that comes as a complete surprise, a blessed event that extends your family creating a need for more room at home, not to mention other expenses that come with the birth of a child
  • Increase in your or your child's college tuition
  • Job relocation that you have to pay the costs for

Employment changes like a job layoff or shorter work hours. You also could get promoted into a role that doesn't pay overtime, a change that could find you earning less at the end of the year.

What may hurt now could create mortgage breathing room later

The road to give yourself mortgage breathing room starts with the right preparation and planning. Because you probably won't know every event that's going to happen in the near or distant future, you have to start saving as if two to three unexpected events might occur simultaneously within the next few months.

As an example, to give yourself mortgage breathing room, you could deposit $100 or more per paycheck into an interest bearing account. You could also:

  • Double up on the amount of money that you pay on your auto loan. Keep this up and you could pay off your auto loan in half the time that you thought it would take you to clear the debt.
  • Pay off the total amount on your car insurance instead of making monthly payments. If an unexpected event occurs and your auto insurance is paid off, you may not have to think about making an auto insurance payments for months.
  • Delay taking another college class until you payoff debt on one or more classes that you currently owe
  • Switch service plans like cable television and cell phone to lower, reliable plans or service providers.
  • Pay off credit card debts at the end of the month. Avoid making new credit card bills until after existing credit card balances are paid off.

These are a few ways that you could give yourself mortgage breathing room. Just taking two of these actions could put several hundred dollars within reach should you need to pay for unexpected repairs or medical expenses.