Do You Own Too Much House?

Most everyone can appreciate the beauty of a large home – especially one that offers numerous features and amenities like storage, guest rooms, and a Do You Own Too Much House?big yard that outlines the home in a picture perfect setting. But although having an ample sized abode can provide you with the space that you need (and then some), in certain cases, it is possible to own “too much” house.

So, how do you know if you have “too much” house?

While many people think that the physical size of a home (and yard) are the primary criteria in whether or not you have too much, the reality is that financial benchmarks can also play a big part.

There are a few key factors that can help you with determining this, such as:

  • You don’t have any equity in the property. Many experts agree that if you have less than 5 percent equity in your home, then the home (or at least the mortgage) is too much.
  • You have rooms without any furniture in them. Although it’s nice to have the additional space, if you have rooms that are unfurnished – especially with no plans to do so – then the house may be too big for your current needs.
  • Your mortgage payment exceeds 40 percent of your monthly income. If your mortgage payment is creeping up on 40 percent of your monthly income, it’s likely that you won’t have much left over to pay for other needs. In many instances, experts actually feel that only about 25 percent of your monthly income should be dedicated to your home loan.
  • You aren’t able to keep up with the required maintenance. While many people enjoy tidying up their home and yard, if the maintenance is too much, it is possible that you’ve got too much home. In addition, if a home’s needs are neglected for too long, it is likely that it will also lose value.

If the size of your current home and / or mortgage are getting to be too much, give us a call. We can help you to find the perfect sized residence for your needs that may also fit much better into your budget – in turn, allowing you to do more of the things that you enjoy.

By |2017-07-17T21:10:01+00:00July 18th, 2017|Advice|

About the Author:

I grew up in the Bowie-Crofton area with my 3 other siblings. As the middle child, I have a natural talent for negotiating! I moved to the Annapolis area for several years after I graduated college, and I currently reside in Arnold with my wife, son, and daughter.