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Home Buyer's Recession Survival Guide - How To Pay Less Than $500 A Month

Updated on May 26, 2009

A mortgage is usually the single greatest monthly expense any family will ever face. At a time when a 7% mortgage on an "average" $290,000 hypothetical Chicagoland house with 20% down costs $1,544, the thought of paying under $500 a month is nothing more than a pleasant dream for the vast majority of home owners.

Yet, there are many ways to bring that mortgage payment down. All of them are a bit strange and would require some definite rethinking on the part of the home owner as it would likely severely change their lifestyles, but as the old saying goes "change is good!"

1) Sell everything you have and drop it into the mortgage. There are many people who are saddled with enormous mortgage payments that they struggle to make every month, yet have $50,000 in family heirloom jewels in the safety deposit box, two new SUVs, a boat and an RV in the driveway. It may sound like an overwhelming amount of money, but that Chicagoland family could make a one time payment of $157,000, their resultant mortgage payment would drop to $499. Some lucky people have comic book or action figure or fine china collections that would easily fetch that much on an online auction site! What do you have hidden away that might help to blow away much of your mortgage?

2) Move. We no longer live in a world where you have to punch in and punch out in order to make your paycheck. There are millions of Americans who work right out of their spare bedrooms or basements. They either work for a company that allows them to telecommute, or they are independent contractors offering a vast variety of online services, or they are online auction sellers who find a market for a particular niche merchandise and manage to fill it. If you are a work-at-homer, it makes no difference if you are 10 miles or 1,000 miles from the Chicago Loop. So our hypothetical family could easily move far from the city into a location with lots of fresh air, open countryside for the kids to play in and very little crime to worry about, and end up with phenomenal savings. Within 1,000 miles west of Chicago you can find thousands of perfectly acceptable, three and four bedroom houses on huge lots, maybe some are a little older but they are charming and well maintained for well under $50,000 cash! That's not the amount you have to pay for the down payment. That's the full asking price! You can finance that house with $10,000 down and a 7% mortgage payment of $266 a month! And pay monthly property taxes equivalent to a Chicago lunch! If you start scouring areas like western North Dakota and eastern Montana, you will actually be surprised at what just $25,000 will buy you. And if you want to take a further step (visas permitting) to just a smidgen north of the border you can find even greater bargains: such as a perfectly maintained, fully refurbished, three bed one bath home with new central air and heating, on a decent sized corner lot in a lovely little community exactly 30 miles north of the Montana/Saskatchewan border for $9,000! That's less than our Chicagoland family would pay in mortgage payments in just six months: And they would own it outright! Furthermore, they'd find that the climate is nearly identical to the one they left behind on the Lake Michigan shores, so it's not like they're moving to an igloo in Nunavut!

Read The Entire Survival Guide

Home Buyer's Recession Survival Guide - The Subprime Meltdown
Home Buyer's Recession Survival Guide - The Advantage Of Renting Over Buying
Home Buyer's Recession Survival Guide - Why Rent? Why Not?
Home Buyer's Recession Survival Guide - Five Common Mistakes House Buyers Make
Home Buyer's Recession Survival Guide - Get Your Home Sold Quickly & At Your Asking Price
Home Buyer's Recession Survival Guide - Improve Your Home's Value And Sell It For More!
Home Buyer's Recession Survival Guide - Learn The Value Of Curb Appeal
Home Buyer's Recession Survival Guide - Home Staging: Valid Selling Technique Or Fraud?
Home Buyer's Recession Survival Guide - Before You Go House Shopping
Home Buyer's Recession Survival Guide - The Home Condition Checklist
Home Buyer's Recession Survival Guide - Getting A Mortgage From Different Types Of Lenders
Home Buyer's Recession Survival Guide - What To Do After You're Turned Down
Home Buyer's Recession Survival Guide - New Initiatives To Help Get You Approved
Home Buyer's Recession Survival Guide - Isn't HUD An Old Paul Newman Movie?
Home Buyer's Recession Survival Guide - Jumbo Isn't As Huge As He Once Was
Home Buyer's Recession Survival Guide - FHA Q&A
Home Buyer's Recession Survival Guide - The FHA's Credit Requirements Vs. The Bank's
Home Buyer's Recession Survival Guide - Your Credit Score And Your Mortgage
Home Buyer's Recession Survival Guide - Credit Score Confusion
Home Buyer's Recession Survival Guide - Keeping That Credit Score Nice & High
Home Buyer's Recession Survival Guide - Minimize The Interest Payable
Home Buyer's Recession Survival Guide - What Is PMI & Why Do I Care?
Home Buyer's Recession Survival Guide - The LIBOR-COFI-COSI Alphabet Soup
Home Buyer's Recession Survival Guide - REO: Get Rich Quick Or Just Waste Time?
Home Buyer's Recession Survival Guide - Obtaining Flipping Money
Home Buyer's Recession Survival Guide - Consider The Additional Costs
Home Buyer's Recession Survival Guide - What Is Escrow?
Home Buyer's Recession Survival Guide - Tips To Avoid Foreclosure
Home Buyer's Recession Survival Guide - The Changing Value Of Your Mortgage Dollar
Home Buyer's Recession Survival Guide - How To Ride The Interest Rate Spikes
Home Buyer's Recession Survival Guide - Can't Get A Mortgage? What A PITI!
Home Buyer's Recession Survival Guide - Calculating Your Closing Costs
Home Buyer's Recession Survival Guide - Mortgage Broker or Mortgage Banker?
Home Buyer's Recession Survival Guide - The Magic Of A Down Payment
Home Buyer's Recession Survival Guide - A Refinance Checklist
Home Buyer's Recession Survival Guide - Refinancing With Bad Credit
Home Buyer's Recession Survival Guide - The Self-Employed Mortgage Maze
Home Buyer's Recession Survival Guide - VA Loans
Home Buyer's Recession Survival Guide - Offset & Reverse Mortgages
Home Buyer's Recession Survival Guide - The Reasons To Not Buy An Offshore Retirement House
Home Buyer's Recession Survival Guide - How To Pay Less Than $500 A Month
Home Buyer's Recession Survival Guide - Five Easy And Cheap Tips To Save Big $ On Energy

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