The dimensions of this can change somewhat when dealing with long-term loans. If you have a mortgage on terms which allow this, then you're probably better off keeping several months of overpayments in your mortgage account, on the understanding that you're allowed to stop payments for that long in an emergency. Most lenders have some sort of terms like these, but check yours carefully before doing this.
This implies setting your mortgage repayment rate at a level which leaves you with sufficient income to overpay it. Having set things up this way, you can then size your emergency fund on the assumption that you won't have to pay your mortgage out of it.
Why do this? Simply put, the savings on interest are massive and this improves your financial stability a great deal over time.
Why not do this? It requires careful and diligent financial planning, and that sort of person probably doesn't need telling how to take advantage of the subtleties of mortgages.
This implies setting your mortgage repayment rate at a level which leaves you with sufficient income to overpay it. Having set things up this way, you can then size your emergency fund on the assumption that you won't have to pay your mortgage out of it.
Why do this? Simply put, the savings on interest are massive and this improves your financial stability a great deal over time.
Why not do this? It requires careful and diligent financial planning, and that sort of person probably doesn't need telling how to take advantage of the subtleties of mortgages.