Are You House Poor?

Are you struggling to pay your rent or mortgage?

LendingTree recently reported that 20% of owner-occupied households in the U.S. are house-poor. Many are spending more than half their monthly income on housing. 30% is considered the recommended limit for housing costs which include rent or mortgage, plus utilities, insurance, and property taxes. Monthly rents have been rising faster than wages for years. If payments are too high, look for something cheaper or find a roommate. The study also showed that median mortgage payments reached $2,200 a month due to high prices and rising interest rates. On a positive note, equity increased on the average home more than $100,000 just in the last 4 years.

So if you’re struggling to pay your mortgage, here are some tips. Shop around for a lower rate or ask your lender for a mortgage modification. If you put less than 20% down towards your home purchase, you’re probably paying for private mortgage insurance. If you’ve built up at least 20% equity in your home, you can ask your lender to remove the insurance. You may qualify simply because of the increased real estate value, and if you want to buy a home, work on strengthening your credit score, reducing your debt, and building your emergency fund. Set a housing goal by strategically saving for a down payment. Determine what you can realistically afford without putting stress on yourself or your family. Calculate your total housing costs at 30% of your income and only look at homes within that window.

And if inflation has led you to credit card debt, Christian Credit Counselors will help. They’ll create a debt management plan specifically for you. For more information visit crown.org/ccc.