One common problem that people run into is that they become house poor. What does this mean? You are house poor if you have no extra money to pay for emergencies, cover your expenses and save for the future, because your house payment is too large. Your house payment should be about twenty-five percent of your take home pay. Some people think it is okay to go up to about thirty percent if you have no other outstanding debt, and do not plan on going into debt. You may end up house poor if your circumstances change and you begin to struggle to make your payments. For instance if one of you decides to stay home after you have children. If you are house poor you need to fix the problem.
Ask yourself these questions:
How permanent or temporary is my current situation?
What are you willing to sacrifice?
Are you thinking you need to sell your home?
Is the word “foreclosure” coming up?
If so, be sure to give Doug a call today!
Are You Living House Poor Audio: Segment 3
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