I need about $20k to get us through a layoff-home equity loan?

[Anonymous]

Anonymous wrote:

Anonymous wrote:^ not OP, but that is such a helpful post. Thanks for writing that up, appreciate it. This is why I read DCUM!

I wrote that. Thank you! I have benefitted in the past from DCUM and wanted to pay back, so to speak.

Op here. I really appreciate it too! Thank you!!

[Anonymous]

To all the people suggesting side gigs — how much are you thinking OP will clear with these gigs? Not a lot. She needs $20k. Earning $1k per month isn’t going to make much of a dent in that.

[Anonymous]

Anonymous wrote:To all the people suggesting side gigs — how much are you thinking OP will clear with these gigs? Not a lot. She needs $20k. Earning $1k per month isn’t going to make much of a dent in that.

Yup which is why she should drop the childcare. It costs more than she could possibly make in side hustles.

[Anonymous]

Anonymous wrote:OP, here are your options:

1) HELOC. That will take 30 days or so to close on. That will give you a comfortable financial cushion since you have so much equity. You will likely miss your mortgage payment for November if you take this route. Your rate will probably be 8-10%. The nice thing about this option is that your payment will likely be interest only so the payment amount will be lower than principal and interest. Also, you can use your proceeds from your home equity line to pay your monthly bill, which reduces your need for actual cash.

2) Credit cards. This is the easiest option and immediate. You should call every one of your credit cards and ask them to increase your limit. Then, just pay the minimum. You can use your husband's salary to pay your mortgage and put whatever else on your credit cards. Your rate will probably be 25%+.

3) Personal loan through the bank. Should be able to close in days (inside of a week or less). Interest rate should be 5-10%.

You can combine these options together. For instance, you can start out with the credit card option and then when your HELOC closes, you can pay off your credit cards. You can do a combo of #2 and #3 together if you don't want to tap home equity.

Sorry to hear about your job loss and hope the above options help you get started in your thinking on how to address your cash crunch.

Amazing. A helpful post that answers the question that was asked without crapping on OP or giving her options that require a time machine to go back in time and make completely different decisions.

[Anonymous]

Job or no job, OP bought too much house. If she has as much equity as she claims, I would sell the house and take the cash and buy a townhome. Don’t know if you can buy townhome outright, but you can surely get a mortgage, even with today’s higher rates, that is more manageable.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:My choice would be to get a part -time job and apply for jobs with the rest of the time. Keep the house and childcare.

If fast food/target feels below her, there are lots of hourly jobs filled with college grads, like bookstores and coffee shops. Tutoring is also a fantastic suggestion and I know tons of people who did this in between jobs, in order to pay their mortgages.

Also, depending on her profession, can she consult somehow?

Getting a loan right now is an extremely risky move that will make them even more house poor, and will negate the "screaming deal" thing.

Years ago, we got th advice to always buy a house that we can afford on one income. Makes life way, way less stressful.

That’s because years ago it was possible. For most worker bees you need two incomes for decent house/schools/commute or one BIG income.

No, you don't, you have to choose your housing wisely. We got a sh@t shack that is 1000square feet as we wanted to make sure with job loss or another emergency we could afford the house.

That’s just BS. The cost of housing is tied to location, schools, and somewhat lot size.

[Anonymous]

DH and I were in a pinch several years ago and took out a 401k loan for 15k. If you know for a fact you will be back on your feet soon, I’d have your husband do that. The first payment can be deferred and you will pay yourself back. We had it paid within 6 months.

[Anonymous]

Put your home on Airbnb and rent out rooms. Sell your jewelry, car, any other assets. Seek out a private hard money loan (interest and terms will not be favorable). Amazon hires anyone with a pulse. You’ll make 1200 a week.

[Anonymous]

If you took out a Home Equity loan after the job loss, will the bank qualify you and your DH based on one income?

A HELOC is a decent safety net to set up before you need it.

[Anonymous]

Anonymous wrote:Put your home on Airbnb and rent out rooms. Sell your jewelry, car, any other assets. Seek out a private hard money loan (interest and terms will not be favorable). Amazon hires anyone with a pulse. You’ll make 1200 a week.

Not OP, but when I look at the Amazon jobs site, the nearest place that is hiring is over 60 miles away. I live in a far out exurb (close to Jiffy Lube Live concert venue) and there are at least two warehouses very close to me, but apparently they aren't hiring.
OP said she doesn't live in the DC area so who knows if her local warehouse is hiring.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Put your home on Airbnb and rent out rooms. Sell your jewelry, car, any other assets. Seek out a private hard money loan (interest and terms will not be favorable). Amazon hires anyone with a pulse. You’ll make 1200 a week.

Not OP, but when I look at the Amazon jobs site, the nearest place that is hiring is over 60 miles away. I live in a far out exurb (close to Jiffy Lube Live concert venue) and there are at least two warehouses very close to me, but apparently they aren't hiring.
OP said she doesn't live in the DC area so who knows if her local warehouse is hiring.

pp who lives near jiffy lube live here
And $1200/week working for Amazon? No. OP lives in a low cost of living area--the Amazon jobs near her are probably paying around $17/hr. She'd have to work 40 hours per week plus 20 over time (at time and a half) which Amazon is not going to allow, to get to $1200/week.

[Anonymous]

OP will probably quality for a HELOC. They paid 800K and presumably put down 20% so they have some equity (they do not have 700K equity just because their house appreciated -- that isn't realized until it actually sells for that much).

OP, I would not sell the house.

I would call the bank and see if you can pause payments for a few months.

I would also try to get small jobs if you can (tutoring etc...). I am also a professor - can your husband teach an overload in the Spring? Are there any short semester courses now he can do that for?

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:My choice would be to get a part -time job and apply for jobs with the rest of the time. Keep the house and childcare.

If fast food/target feels below her, there are lots of hourly jobs filled with college grads, like bookstores and coffee shops. Tutoring is also a fantastic suggestion and I know tons of people who did this in between jobs, in order to pay their mortgages.

Also, depending on her profession, can she consult somehow?

Getting a loan right now is an extremely risky move that will make them even more house poor, and will negate the "screaming deal" thing.

Years ago, we got th advice to always buy a house that we can afford on one income. Makes life way, way less stressful.

That’s because years ago it was possible. For most worker bees you need two incomes for decent house/schools/commute or one BIG income.

No, you don't, you have to choose your housing wisely. We got a sh@t shack that is 1000square feet as we wanted to make sure with job loss or another emergency we could afford the house.

We did that too, and it does seem like OP got a bit over their head, but sh$tshack houses in our neighborhood are going for way more than they did a few years ago due to the low supply, and interest rates are much higher now. Our new neighbors are essentially paying DOUBLE the mortgage we are for the same small, mediocre house. I feel for new homebuyers these days.

[Anonymous]

Maybe OP already responded to this, but can your professor husband tutor to at least bring in a little extra $$? I think the PP upthread provided a good summary on the best loan options, but do what you can to bring in some income too. And I get wanting to devote time to applying for jobs, but see if you can pick up something part time at Target or something like that.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Put your home on Airbnb and rent out rooms. Sell your jewelry, car, any other assets. Seek out a private hard money loan (interest and terms will not be favorable). Amazon hires anyone with a pulse. You’ll make 1200 a week.

Not OP, but when I look at the Amazon jobs site, the nearest place that is hiring is over 60 miles away. I live in a far out exurb (close to Jiffy Lube Live concert venue) and there are at least two warehouses very close to me, but apparently they aren't hiring.
OP said she doesn't live in the DC area so who knows if her local warehouse is hiring.

pp who lives near jiffy lube live here
And $1200/week working for Amazon? No. OP lives in a low cost of living area--the Amazon jobs near her are probably paying around $17/hr. She'd have to work 40 hours per week plus 20 over time (at time and a half) which Amazon is not going to allow, to get to $1200/week.

Her DH can work on the side too.