Steve Chen, founder of CALLTOLEAP, offers a refreshingly different perspective on a standard financial dilemma. A homeowner with a $2,090 monthly mortgage payment and $4,200 monthly take-home pay was advised to sell their house because the payment consumed 50% of their income. Chen boldly disagreed with this conventional wisdom.
While most financial advisors recommend housing costs stay below 30% of your income, Chen’s contrarian view caught my attention. He argued that in today’s market, a $2,000 mortgage is “extremely rare” and worth fighting to keep.
The Value of Affordable Housing in Today’s Market
Let’s be honest – finding affordable housing has become increasingly complex. With mortgage rates and home prices soaring in recent years, a $2,000 monthly payment is indeed becoming uncommon for new buyers. Chen recognized this reality when he stated, “I would not sell the house, especially with a $2,000 mortgage. That’s extremely rare nowadays.”
This perspective challenges the standard financial advice that often treats budget ratios as rigid rules rather than guidelines. Sometimes, holding onto an asset with long-term value justifies short-term financial strain.
Sometimes recognize that you have something good in your life and that you should do whatever you can to keep it, especially if it’s a $2,000 mortgage.
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A Three-Step Plan to Keep Your Home
Rather than selling, Chen offered a practical three-step approach that I find both realistic and actionable:
- Live humbly – Cut expenses wherever possible without sacrificing necessities
- Increase income – Focus energy on earning more through career advancement and skill development
- Track progress – Use budgeting tools to monitor improvement until the mortgage represents about 30% of take-home pay
What strikes me about this advice is its balance between financial discipline and practical reality. Chen isn’t suggesting ignoring financial principles but rather working toward them gradually while preserving a valuable asset.
The Humble Lifestyle Approach
The first part of Chen’s strategy involves embracing frugality. He specifically mentioned shopping at discount grocery stores, such as Aldi, avoiding luxury brands, and driving modest vehicles like Toyotas or Hondas.
This approach isn’t about deprivation but prioritization. By cutting discretionary spending, homeowners can direct more resources toward their housing costs while working to improve their financial situation. The beauty of this strategy is its immediate impact – every dollar saved is a dollar that can help maintain homeownership.
Income Growth as the Ultimate Solution
What I find most compelling about Chen’s advice is his emphasis on income growth as the sustainable solution. Rather than just cutting expenses (which has limits), he advocates actively pursuing higher earnings through:
- Seeking promotions by demonstrating additional value to employers
- Developing marketable skills in high-demand areas like sales, digital marketing, and data analytics
- Using free or affordable learning resources like YouTube, ChatGPT, Coursera, and edX
This growth mindset transforms the temporary financial strain of a high mortgage-to-income ratio into a motivating challenge rather than a reason to surrender a valuable asset.
The Long-Term Perspective
Financial decisions shouldn’t be made in isolation or based solely on current circumstances. Chen’s advice encourages taking the long view — recognizing that temporary sacrifices can preserve significant long-term benefits.
In a housing market where costs continue to rise, holding onto an affordable mortgage might prove wiser than selling and potentially facing higher housing costs later. This perspective values stability and recognizes that some financial rules need contextual application.
While conventional wisdom has its place, Chen’s contrarian advice reminds us that personal finance isn’t always about following textbook rules. Sometimes it’s about recognizing what you have, making temporary sacrifices, and working diligently to improve your situation without surrendering valuable assets. For homeowners facing similar challenges, this balanced approach offers both hope and a practical path forward.
