I was talking to a mortgage broker who was very excited to tell me about a program that could get my clients approved for a mortgage with a payment as high as 45% of their income and how great that is to be able to get more people into a home. Half of every dollar made going to a mortgage payment! So I thought to myself “I am in trouble.” How am I ever going to convince someone they should not do that! I recommend no more than 15% of your gross income going to your principal and interest payments. (This does not include escrow payments such as taxes and insurance). Think about all the other things pulling at your income like taxes, monthly bills and expenses. What would happen if your home mortgage payment was too big? You would still have to eat, and get clothing, and spend some money, but what would be lacking is any significant savings for your future, protection against unexpected events. What would follow is that financial dilemma of where should every dollar go? Generally savings and protection get reduced and financial stress, worry and anxiety go up. This is the concept of being house poor, where you can’t do anything else but stay in your home. I have to be honest, this happened to me at one time. I bought the home of my dreams and I thought I would be so happy, that this house would make my life complete. But I was house poor, able to afford the house and the necessities, but little else. It brought on depression. It is not the house that brings happiness and fulfillment, but family, relationships, the things that matter most to you. Don’t allow your house payment to take over your life!
Registered Representative and Financial Advisor of Park Avenue Securities LLC (PAS). OSJ: 800 Westchester Avenue 4th Floor Suite N409, Rye Brook, NY 10573, 914-288-8800. Securities products and advisory services offered through PAS, member FINRA, SIPC. Financial Representative of The Guardian Life Insurance Company of America® (Guardian), New York, NY. PAS is a wholly owned subsidiary of Guardian. TrueView Financial LLC is not an affiliate or subsidiary of PAS or Guardian.
Material discussed is meant for general informational purposes only and is not to be construed as tax, legal, or investment advice. Although the information has been gathered from sources believed to be reliable, please note that individual situations can vary. Therefore, the information should be relied upon only when coordinated with individual professional advice.
2020-96036 Exp. 03/2022