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A Guide to Preparing for Unexpected Home Repairs with a Rainy-Day

A Guide to Preparing for Unexpected Home Repairs with a Rainy-Day Repair Fund

Few things can send your finances into turmoil like an unexpected home repair. With projects that can cost tens of thousands of dollars just to get things functional and with nearly every home experiencing an emergency sometimes, it’s important to prepare your finances by creating a rainy-day home repair fund and using it wisely when the time comes.

1. Determine How Much Your Rainy-Day Fund Should Be

Although a rainy-day repair fund is universally important, how much that repair fund should be can vary widely between areas and homes. While replacing a hot water heater may be comparable in cost regardless of where you live, the cost of replacing a roof will depend on the square footage of your roof, the materials appropriate for your climate, and the length of time the workers will have to spend putting the roof on. The average roof replacement costs between $5,000 and $22,000.

Assess your home for the issues that are most likely to arise based on its history and usage. Common home emergencies include burst pipes needing cleaned up and replaced, a flooded basement, and a damaged roof, all of which can cost you a pretty penny to remedy.

2. Get Your Rainy-Day Fund Funded

Part of the rainy-day fund’s appeal is that it is accessible to you when you need it without a waiting period, so getting it funded ahead of time is of utmost importance. While it’s possible to save for your fund by putting away a bit of spare cash each month or paycheck until you get it to the amount you’ve decided on, for others, refinancing their home might be a better option.

Particularly for those who are planning on staying in their homes long-term, refinancing can be a wonderful way to take advantage of a lower rate and possibly even negotiate better terms than the ones of your current mortgage. If you’re considering refinancing your home, keep an eye on the market and note when interest rates are low, as that is the