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5 Signs You Are Buying a Too Much House

For anyone working through their career, one of the main objectives is to build or buy a house. It is more than just knowing the right time to buy a house. However, in their eagerness, many people end up spending their money getting “too much house.” Unfortunately, buying a too much home is a common issue that plagues Americans across the country. 

People that own too much house will suffer from significant utility and maintenance costs. Pile on top of that low housing liquidity and high foreclosure risk, and the result is massive amounts of stress. Here are a few sure-shot signs that will let people identify whether they own too much house. 

1. Not Enough Equity 

A primary indication of whether a consumer is in a situation where they have too much house is the level of equity. If there’s less than 5% equity in the housing contract, then it’s a clear indication that the homeowner is in too much house.

One of the most significant issues that come with low equity is low housing liquidity. If the market is in a bad place, the consumer has no option to sell and is bound to too much house.

2. Maintenance is Out of Hand

Another sure shot indication of too much house is a maintenance bill that’s too difficult to manage. Homeowners that consistently can’t afford to paint their home or get it mulched are suffering from too much house. 

When homeowners struggle to keep up with their maintenance, they compound the issues by putting themselves in debt to maintain their appearance. Additionally, by failing to keep up with maintenance, the housing problem will continue to get worse.

As more issues start to appear in the house, the value will deteriorate and add to the housing liquidity issues. 

3. Loads of Unfurnished Rooms

Perhaps the most unambiguous indication that there’s a case of too much house is that there are loads of unfurnished rooms in the house. Sure, everyone can make for having a cause for guest rooms that don’t see a lot of use, but is it worth the cost?

It’s prevalent for people to live in massive houses that barely have enough furniture. Unfortunately, most people fail to consider the cost of furniture and end up buying houses that they can’t afford to furnish. 

4. High Housing Payment 

A housing payment that amounts to around 40% of the monthly income indicates that there is too much house problem. Experts suggest that the maximum housing payment percentage should not exceed 25%. 

There are some real consequences to a high housing payment. The more the homeowner spends on a household, the less they can spend on everything else. That means that the homeowners won’t be able to spend money on maintenance or won’t be able to build up savings. 

5. Downsize Retirement

If an individual needs to downsize their retirement savings to pay for the house, it’s another indication that they’re buying too much home. Downsizing retirement savings is never a good idea, and there’s no need to buy into more houses than one can afford.


It’s difficult for homeowners to get out of a situation where they’re guilty of buying a too much house. It would be difficult to reach financial stability if there are unnecessary expenses such as this. Most of the time, homeowners are unaware if they’re even in a position where it’s too much house. If homeowners are guilty of three of the five indicators, they’re in too much house situation.

If you’re running behind on mortgage or credit payments, consider Loyal Lending to help you with debt consolidation.


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