HOW TO AVOID BEING HOUSE POOR AND ACTIONS TO TAKE IF YOU ARE

Have you ever heard the term “house poor?”

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It’s a term used to describe people who cannot afford their monthly mortgage payments, even though they may have a good income.

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House poor is purchasing a house that exceeds the owner’s budget.

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Proper planning can help someone avoid becoming house poor, but even the best planners can find themselves in a situation where their income changes and they become house poor.

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The 30-percent rule, which states that a household should spend no more than 30 percent of its income on housing costs, has been widely accepted by academics.

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How Do People Become House Poor

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HOW TO AVOID BEING HOUSE POOR AND ACTIONS TO TAKE IF YOU ARE

Have you ever heard the term “house poor?”

It’s a term used to describe people who cannot afford their monthly mortgage payments, even though they may have a good income.

House poor is purchasing a house that exceeds the owner’s budget.

What Is “House Poor”

Proper planning can help someone avoid becoming house poor, but even the best planners can find themselves in a situation where their income changes and they become house poor.

The 30-percent rule, which states that a household should spend no more than 30 percent of its income on housing costs, has been widely accepted by academics.

How Do People Become House Poor

First, there may be a massive change in an individual’s income, such as jobs or unemployment.

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