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How to Not be House Poor

We’ve all heard the term “house poor,” but what does it truly mean? Being “house poor” refers to a situation where the majority of your income is consumed by housing expenses, limiting your financial freedom.
 
Picture yourself basking in the glow of your new home, sipping coffee in that beautiful kitchen. Sounds dreamy, right? Now, imagine your bank account gasping for air as you struggle to keep up with mortgage payments, utility bills, and those surprise repair costs. This scenario is surprisingly common, and many homeowners find themselves in it.
 
A common mistake among first-time homebuyers is overextending themselves with homeownership.

What Makes Us Different

In 2024, 47% of SNMC borrowers were first-time homebuyers, which is almost twice the industry average of 24%, as reported by NAR. We prioritize building trust with you by taking the time to educate you about the various options available. Our goal is to help you understand what’s best for your unique financial situation, ensuring you can confidently navigate your homeownership journey and afford your dream home.

Tips to Avoid the House Poor Trap

  • Understand Your Debt-to-Income Ratio: Keep your debt-to-income ratio below 40%. This ratio is crucial for lenders and helps you assess your financial health. If it’s above 40%, consider reducing your debts before buying a home.
  • Start with a Solid Budget: Create a detailed budget that includes all housing costs, such as mortgage payments, property taxes, utilities, and maintenance. Ensure that your mortgage payment is less than 30% of your income to maintain financial comfort.
  • Explore Down Payment Options: Don’t feel pressured to make a 20% down payment. Many lenders offer options as low as 0%. However, if you can afford a larger down payment, it may lead to better interest rates and lower monthly payments.
  • Maintain Good Credit Health: A strong credit score is vital for securing favorable mortgage terms. Regularly check your credit report for errors and work on improving your score before applying for a mortgage.
  • Tackle That Debt: Before making another big move, chip away at any current debts. Not only will it lighten your load, but it can also improve your credit score. Lenders love a high score, which could mean a lower interest rate.
Try our free affordability mortgage calculator.

What If You’re Already House Poor?

  • Identify and Reduce Unnecessary Monthly Expenses: Review your monthly expenses to identify small, unnecessary costs that can be trimmed, such as daily coffee runs or unused subscriptions. Even cutting back on just a few items can free up significant cash, allowing you to allocate funds toward your mortgage or savings.
  • Evaluate Mortgage Refinancing Options: If interest rates have dropped since you secured your mortgage, refinancing could lower your monthly payments and save you money in the long run. By refinancing, you may also be able to eliminate PMI if you’ve built enough equity in your home, further easing your financial burden.
  • Explore the Possibility of a Home Equity Loan: If you have built up equity in your home, consider a home equity loan or line of credit. This can provide you with additional funds to manage expenses or consolidate debt.
  • Pay Down Your Mortgage with Extra Cash: Throwing extra cash at your mortgage principal can significantly reduce the amount of interest you pay over time, leading to greater financial freedom. By paying down your mortgage faster, you can also eliminate private mortgage insurance (PMI) sooner, saving you even more money each month. Reach out to one of our loan officers to see if you can remove PMI.

Contact us to explore your options.

Finding Financial Comfort

Managing your home finances doesn’t need to be an uphill battle. Whether it’s throwing extra cash at your mortgage after scoring an unexpected bonus, there’s always a way back to financial comfort. You don’t necessarily have to become a minimalist or sacrifice all comforts; just be smart and stay flexible. Make it a habit to check your bank statements each month or even each week! You’ll be amazed at how quickly those small purchases add up.

Start Today

A knowledgeable Loan Officer will guide you through the essential steps to prepare for your home purchase or help you navigate your current situation. Starting these conversations now can set you on the path to achieving the stability you desire. Focus on establishing realistic and attainable goals for your homeownership dreams.
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Unlocking the Potential of Your Home Equity

In today’s financial landscape, understanding the equity in your home can be a game-changer. With rising credit card debt and the cost of education, leveraging your home equity might be the key to achieving financial stability.

What is Home Equity 

Home equity is the difference between your home’s market value and the outstanding balance on your mortgage. As you pay down your mortgage or as your home’s value increases, your equity grows.

The Growing Trend of Home Equity Loans

According to the MBA’s 2025 Home Equity Lending Study, there has been a significant increase in home equity loans and lines of credit. In 2024, originations rose by 7.2%, with a 10.3% growth in total debt outstanding. This trend is expected to continue, with projections of nearly 10% growth in HELOC debt and 7% in home equity loan debt in 2025.

The image above shows that in 2024, borrowers utilized their home equity for various purposes.

  • Approximately 39% of borrowers used it for debt consolidation, reflecting a growing need to manage rising non-housing debt.
  • Home renovations accounted for 46% of the usage.
  • While 6% of borrowers tapped into their equity for emergency cash management and other big-ticket financing, such as education and down payments.

Types of HELOCs

  • Variable Rate: Offers flexibility with interest rates that can change over time.
  • Fixed Rate: Provides stability with a consistent interest rate throughout the term.
  • Interest Only: Allows for lower initial payments by paying only the interest for a set period.

Why Tap into Your Home Equity?

  1. Debt Consolidation: With non-housing debt, such as credit cards and car loans, increasing by 56% over the past decade many homeowners are using their equity to consolidate debt. This can lead to lower interest rates and simplified payments.
  2. Education Expenses: As a new school year approaches, many families face the financial burden of college tuition. Using home equity can be a strategic way to fund education without resorting to high-interest loans.
  3. Financial Flexibility: Whether it’s for emergency cash management or big-ticket financing, such as a second home, your home equity can provide the financial flexibility you need.

Start by connecting with one of our loan officers to discuss which type of HELOC best suits your personal goals.

Explore Your Options
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Back to School Season: Smart Mortgage Moves for Every Stage of Life

As summer winds down and the back-to-school season kicks in, many families are thinking about education, new beginnings, and financial planning. Whether you’re a parent preparing to send your child off to college, an empty nester looking to downsize, or a college student planning for the future, this time of year presents unique opportunities in the mortgage market. Let’s explore how mortgages can play a vital role in your back-to-school plans.

 

1. Cash-Out Refinancing for College Tuition
For parents of college-bound students, financing education can be a significant concern. One option to consider is a cash-out refinance. By tapping into your home’s equity, you can access funds to cover college tuition and related expenses. This approach often comes with lower interest rates compared to student loans, making it a financially savvy choice. Plus, you can consolidate your debt into one manageable monthly payment.

 

2. Buying a Home in a Good School District
If you’re considering a move, back-to-school season is an excellent time to buy a home, especially in a neighborhood with a reputable school district. Investing in a home in a good school area not only benefits your children’s education but can also enhance your property’s value over time. Families often prioritize homes in desirable school districts, making them a smart investment for your future.

 

3. Empty Nesters: Downsizing and Investing
As children head off to college, many empty nesters find themselves with extra space. This is a perfect opportunity to downsize to a more manageable home. The proceeds from selling your larger home can be used for various purposes, such as funding your child’s tuition or purchasing an investment property. An investment home near the college can provide your child with a place to live while also generating rental income.

 

4. College Students: Start Saving for Your Future Home
For college students, now is the time to start thinking about your financial future. As you focus on your studies, consider setting aside a portion of your income or financial aid for a future home purchase. By saving early, you’ll be better prepared to enter the housing market after graduation. Understanding the mortgage process and saving for a down payment can set you up for success in homeownership.

 

5. Refinancing for Better Financial Health
Back-to-school season is also a great time to evaluate your current mortgage. If you haven’t refinanced in a while, you may be able to secure a lower interest rate, reduce your monthly payments, or shorten your loan term. This can free up funds for school supplies, extracurricular activities, or even a family vacation.

 

6. Home Equity Lines of Credit (HELOCs)
If you’re not ready for a cash-out refinance, consider a Home Equity Line of Credit (HELOC). This flexible option allows you to borrow against your home’s equity as needed, making it a great way to cover unexpected expenses during the school year, such as tuition increases or additional fees.

 

Conclusion
As the back-to-school season approaches, it’s essential to consider how mortgages can fit into your financial plans. Whether you’re looking to finance your child’s education, buy a new home in a great school district, downsize as an empty nester, or prepare for future homeownership as a college student, there are numerous opportunities to explore.

 

If you have questions about your mortgage options or need assistance navigating the process, don’t hesitate to find a loan officer near you!
It’s Better Here™

NPS Score: Q1 & Q2 2025

We are thrilled to announce that our Net Promoter Score (NPS) for the first half of 2025 is an outstanding 84! This achievement reflects our unwavering commitment to providing exceptional service to our customers. Here’s how our monthly scores have evolved during this period:

Jan 2025 Score

April 2025 Score

Feb 2025 Score

May 2025 Score

March 2025 Score

June 2025 Score

What is a Net Promoter Score?

Net Promoter Score (NPS) is a widely recognized metric that gauges customer loyalty and satisfaction. It is calculated based on responses to a single question: “How likely would you recommend SNMC to your friends or family or to use SNMC again yourself?” Customers are categorized into three groups:

  • Promoters (9-10): Loyal customers who are likely to recommend your services.
  • Passives (7-8): Satisfied but unenthusiastic customers who may switch to competitors.
  • Detractors (0-6): Unhappy customers who can damage your brand through negative word-of-mouth.

The NPS is calculated by subtracting the percentage of Detractors from the percentage of Promoters.

Benchmarking 

NPS averages for the mortgage lending industry typically hover around 60-70. Our score of 84 not only surpasses this benchmark but also highlights our dedication to excellence in customer service.

What Our Customers Are Saying

We are proud to share some testimonials from our valued customers:
“The company is very professional, friendly, and very dedicated to helping you qualify for the best program. They are the best. I really recommend to use the service they provide for your new Home purchase. ” – Belle Ghais
“Caitlan and Tina are exceptional, I haven’t worked with any other mortgage company in the past with anywhere close to the customer service and knowledge that they have.” – William J Carnell

“Very patient, very helpful ” – Chris Roch

“Super fast, friendly, and good service” – Guillermo Ruffino
“Excellent service, it was a very quick process, Bernie was very attentive, he gave us all the necessary information to carry out the dream of buying our house.” – Christian Crespo

A Commitment to Continuous Improvement

As our President and CEO, Andrew Quist, states, “We are constantly striving to make your borrowing experience better, and we want to make your next loan an even better experience.” This sentiment reflects our dedication to not only maintaining our high NPS score but also enhancing the customer experience with every interaction.
As we celebrate this achievement, we remain focused on maintaining and improving our NPS score. We invite our customers to share their feedback and experiences, as it is invaluable in helping us serve you better.
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The Bridge Loan Dilemma: What You Need to Know (And Why There’s a Better Option)

If you’ve found your dream home but haven’t sold your current one, you might have heard about bridge loans. Let’s demystify this financing option and explore why newer alternatives might better serve your needs.

Understanding Bridge Loans
A bridge loan is a short-term financing solution that helps homeowners purchase a new home before selling their existing one. Typically lasting 6-12 months, these loans literally “bridge” the gap between two transactions.

How Traditional Bridge Loans Work
• They’re short-term loans with higher interest rates
• Usually require excellent credit and significant equity
• Often come with substantial closing costs
• Typically involve complex approval processes
• Usually require payments on both properties

The Hidden Challenges
While bridge loans can provide a solution, they often come with drawbacks:
Higher Costs: Interest rates are typically several points above standard mortgage rates
Double Payments: You’re often required to make payments on both the bridge loan and your existing mortgage
Time Pressure: The short-term nature can create stress to sell quickly
Strict Requirements: Many lenders have stopped offering bridge loans due to their complexity

A Better Solution:
The SN Cross Collateral Loan* exclusive to SecurityNational Mortgage was developed as an innovative alternative that addresses these common pain points. Our exclusive Cross Collateral Loan offers several distinct advantages. Instead of juggling two mortgages or rushing to sell, you can access the equity from your current home to purchase your next one.

Unlike a bridge loan, this program excludes the mortgage payment on your departing residence, and removes the home sale contingency when buying your next home. You’ll have 6 months to sell your existing home and eliminate the stress of timing two transactions perfectly, giving you the confidence to move forward when the right opportunity comes along.

Making your move in today’s competitive real estate market, timing is everything. While bridge loans were once the only option for buyers in transition, our Cross Collateral Loan offers a more modern, flexible approach. You can make strong, non-contingent offers on your next home while selling your current one on your own timeline.

Ready to learn more about how our Cross Collateral program can help you make your next move with confidence? Contact your loan officer today to explore your options. It’s Better Here™.

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*Only available in certain states.