Protect your Home Today!!!!

Are you one of the millions of Americans who fear that company cutbacks may cause you to lose your job? With the national unemployment rate at the highest in 26 years, touching 9.4% as of early August 2009, it is expected that millions of more Americans will lose their jobs this year before the economy gets better. Though you may not be able to predict the stability of your job, what can you do now to protect your income and mortgage if a layoff occurs for you? Contribute to Savings.

Many individuals and families with good jobs and a mortgage do not have an emergency savings account set in place. To protect yourself and your family from a financial crisis, you should have a savings account set up with at least three, and ideally six, months of living expenses. The system I use will generally use 3 months of savings for a two income household and 6 months for an one income household. That means you should look at your monthly budget and determine what basic costs you will incur, such as your house payment, groceries, car payment, etc. If you have little or no savings at all, start now.

Open a savings account at your bank that you contribute money into each month. The more you can cut back now and put into savings, the better you will feel if you are suddenly laid off from work. Buy Mortgage InsuranceMortgage insurance is available that can help you pay your mortgage while you are unemployed. However, don't confuse mortgage insurance with Private Mortgage Insurance (PMI). PMI is a type of insurance you may be required to pay for each month with your regular mortgage payment. PMI protects your lender and pays them the balance of your loan in the event you default. This is for the sole benefit of your lender and doesn't help you prevent foreclosure.

Find an insurance agent that sells mortgage protection insurance. The type of policy you need is one that will take over all or a portion of your mortgage payment should you become disabled or find yourself unemployed due to layoffs. Premiums may be high, but the alternative could be a more expensive foreclosure if you are out of a job.

Remember, this is general information. Always seek sound financial and legal advice before making any financial decision.