How to Be Ready When Faced with an Emergency Home Repair

Emergency home repairs come for every homeowner. It may be a failed water heater, a crack in your foundation, or a sinking roof, but whatever it is, you will eventually need to fork out the money for costly fixes. Though unexpected repairs never come at a good time, doing a little preparation can keep your stress levels down when the day does come. If you’re a homeowner, these tips can help you plan for the major repairs you will need to pay for.

Build your savings

The ideal financial situation is to be able to pay for major home repairs on the spot. That way, you’re not piling up debt through high-interest credit card payments. The best way to achieve this is by starting an emergency repair fund, or building your fund up if you already have one. 

A good starting point is to set aside at least one percent of your home’s value for repairs every year. For example, if your home is valued at $500,000, you should save at least $5,000 in your repair fund each year. Some experts suggest building an emergency fund until you can cover three to eight months of monthly expenses. However, since you can always count on big-ticket components of your home (e.g., foundation, roof, siding, sewer line) eventually needing to be fixed or replaced, planning to contribute to your fund indefinitely may keep you in the best financial position. 

Use your home equity 

Sometimes, an emergency repair is needed before someone has their fund built up enough to cover the cost. If this happens to you, consider using your home equity to access the cash you need. For relatively low out-of-pocket costs, look to a cash-out refinance to pay for home improvements or repairs. How much equity you have in your home will determine whether you need a conventional or FHA cash-out, so do your homework to learn more about your options. Cash out refinancing will not only supply the money you need for repairs, it can even result in better terms than your current loan. 

Explore personal loans 

Another option for paying for emergency repairs is to take out a personal or home improvement loan. There are many loans available that begin with an interest rate below 5 percent. While it’s not ideal, it’s still much cheaper than swiping your credit card. Search online for the various home improvement and personal loans and compare so that you can choose the best one for your situation. For many loans, you can easily apply online. 

Be picky with your contractors

Lastly, the contractor you pick for each home improvement or repair can make a significant difference in how much you pay. Choosing a qualified contractor that fits within your budget is the best way to go. It’s important to remember that just because a contractor charges higher fees doesn’t mean they do the best work. On the other side of the coin, if you hire a contractor because they charge the least, you could end up with more to fix than you started with. For example, there’s a reason mold removal costs most homeowners an average of $2,000 - $6,000; if you suddenly find your basement covered in fungus or discover growths in your HVAC system, a true pro will not only do heavy cleaning, but likely drywall replacement and appliance repair, respectively. If a prospective contractor gives you a bid well under that national average, they may not be doing the quality work you need to remediate and keep the problem away.

Make a point to get referrals from friends and neighbors, interview three or more candidates, check each candidate’s licensing and insurance, and research their previous work. Ask each contractor for an estimate, and consider your options before committing to and signing the contract. 

Being financially prepared for emergency home repairs can save you a lot of stress and money. Start contributing to a repair fund as soon as possible, and look into cash-out refinancing and personal or home improvement loans as other options. Last but not least, be especially selective when hiring a contractor. The sooner you start planning for the inevitable, the sooner you will gain the peace of mind of knowing you’re covered. 

Photo Credit: Pexels

Fishing in the Open Ocean

Every fisherman dreams of deep sea fishing! The rush to get out past the continental shelf into the deep ocean water where pelagic fish swim. Catching giant meals like marlin, dorado, and wahoo!

We are way beyond where they dream of going, so we do take up the opportunity to catch something amazing.

We fished from Florida to Bermuda, and from Bermuda to the Azores, and hooked a whopping two small fish! Thanks to viewers on our YouTube channel, we were able to get the fish identified as Almoco Jacks. They were delicious, but provided nowhere near the satisfaction and meal capacity of a large game fish.

Obviously, we suck at fishing1 While in the Azores, I spoke with local fishermen and talked with other cruisers who have made successful catches while out at sea to figure out how I could do this better. 

When we left the Azores, we were equipped with new gear and new tactics, but so far, 700 miles later, we still have not hooked a single fish. 

Azores to Portugal: Day 9

High latitude Cruising is famous for bringing you sights few see. Why don’t many see these sights? Because it’s cold and rains all the time!

When we sailed to the Azores in 2018, it was warm and sunny. By day we would wear short sleeves and on night watch, a simple jacket was plenty to keep warm. We were sailing below latitude 40N. 

In 2019 when we left the Azores, we headed straight north to go around the eastern limit of the Azores High. This has taken us as far north as Latitude 46N. By day, it will be 61F, by night 50F. 

To make it even worse, you never see the sun because of all the cloud cover. All this cloud cover leads to perpetual rain!

Cold and rainy. That pretty much sums up our experience with higher latitude cruising in June.

Azores to Portugal: Day 8

We are making progress! The winds are out of the ESE once again and we are rocketing north on a beam reach! We are about a hundred miles from our first waypoint and that is making Maddie feel better about progress. 

I view the journey as 1/3 complete because we have 3 turns to make. Maddie views the journey as 1/2 complete because of the number of miles covered and miles remaining. 

It’s interesting how both of these perspectives are correct and yet paint very different pictures about the situation.

Azores to Portugal: Day 7

The winds have shifted once again and are now blowing out of the South East. We set our sails for a beam reach and make our way North East. Maddie feels that we are making miles towards our destination and I am pleased that we are making miles along our planned track.

We have been sailing for a week now and our route is very simple. There are two waypoints and a destination. In the past week, we have been sailing towards our first waypoint and are still so far from it. The ocean feels like it could extend for an eternity without ever showing us land again. Sailing on endlessly over this visible disk of water with no other signs of human life on the horizon. 

It’s a big ocean out here!