House Poor? What's The Meaning Of This?
Troy needs Dave's help in defining "house poor" and how you determine if it's happening to you.
QUESTION: Troy asks what it means to be house poor. Dave’s explanation is pretty simple.
ANSWER: It simply means that your house payment is so high, it breaks you and makes you poor. For example, someone who has a house payment that is 50% of their take-home pay, they cannot mathematically prosper because of their house payment. They bought their house at a level that shouldn’t be done.