Our Mortgage Is Half our Income!
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- Опубликовано: 20 мар 2024
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25% of your income with a 15 year mortgage is a pipe dream for most people these days.
As is home ownership in general.
Not happening in 2024 30 year is the way to go for the majority
True
@@amireallythatgrumpy6508 as would be if people actually applied and work to earn things.... it is NOT that hard..... excuses are like buttholes.... who cares...
Near Impossible with interest rates above 6.5
150 a week is CHEAP for daycare
Still adds up. $7,800 a year!
But if she’s at the house all day then why get rid of the kid ?
@@jo4285she works virtually, most employers require you to have alternative care for children. Maybe the 3 month old is an exception, but usually you can't have your kid home with you.
That was MY QUESTION ❓⁉️ too😂
Plus a 3 year old is like a little tornado.
10k a month, no cards, no debt. They can easily make it work.
For some people, pay 40% is OK for them.
Exactly what I was thinking. Why can't they cover expenses with the remaining $6000/month?? Unless they're drowning in commercial debt.
We paid 40% of our income on a mortgage. It was tight but it worked.
It isn't ideal to have 40% of your net monthly income tied up in your mortgage, however I agree. $10K take-home ($6K left over) is plenty to live on in a month in Texas. Plus, their incomes will increase over time (hopefully above inflation). So for the short-term, they just need to look at their budget and see what is going out, and figure ways they can tighten the belt. My guess is, they will find they really only need $2.5K - $4K for additional living expenses. That leaves $2K - $3.5K left over each month to save/invest.
A year from now, sure, look at possibly selling. But for the short-term, I'd stay put, adjust the budget, and re-evaluate in 12 months.
@@desireesalas5820 She said they have no other debt.
@@nathanielhenkel9178 40% of $4k yah it wouldn’t work but 40% of $10k it’s a different story.
I completely disagree with selling. It's a season. In 5 years, both kids will be in public school and your income will be slightly higher (hopefully). Be on a strict budget and in 5 years you'll be fine.
Living off $6k is hardly a strict budget. Their daycare is also cheap AF.
I think selling the house is bad advice. Either they are lying about their income or they spending money too much.
They still have 6000 per month from which to live! The heck. That's PLENTY of money.
First World Problems 🙄
Yeah wtf is the problem here lol 60 percent of that income is not bad 🙉
It’s relative compared to lifestyle.
Yeah they should've asked them where the 6k was going
That's what I thought.$6000 is a big chunk to live on each month.
For everyone that's curious why they can't make it work it's because they don't actually make 10 k take home. The husband is self employed. I work at a bank and 99% of self employed individuals have no clue what their real net income is. Most of them quote gross or are way off. They probably make less than they claim. Would put money on it that they bring in way less.
Exactly. Most of the people who call in lie about their income and it’s very obvious
I disagree with this. My wife and I have more than 10k left each month after mortgage and it all evaporates in bills, insurance, food, massive education costs for kids.
I’ve learned over the years the people at a lower income level never appreciate how people had a higher income level can spend their money, but it’s not very difficult.
We are not strict with a budget but it’s very easy to spend thousands a month on “whatever”.
If 10 Grand is evaporating after your mortgage payments then you are awful with money haha. Just admit it. That's the dumbest thing I've heard in while @@patty109109
@@patty109109 I'm curious what your massive education costs are?
I don’t understand how they can’t make it…they net $10,000 a month and mortgage is $4000 a month. So where does the $6000 go aside from child care? That’s a lot of extra money that should be sufficient enough to live off of each month.
That’s what I want to know too 🤔
She said they can make it.
Do people just listen to half of it only?
Shits expensive out her inflation 😅
@@jimmymcgill6778 then why were they advising her to sell the house?! If they can make it they wouldn’t have to sell
Once she said they can make it, I was wondering why is she calling.
I don’t think they understand some states you can’t find a house that’s around 25% of your income. It’s possible yes but not everyone can do that
Exactly! In this current housing market most ppl can’t find a house that around 25% of your income
They think everyone is making five figures in a month!!!
Duh these ramsey people have their head in the sand
So they net 6k/month after mortgage. It's the same as someone saying they make 100k gross per year with no housing expense. They don't have a housing problem, they have problem with other expense. selling the house is not a solution.
most us dont net 6k a month before a 4k mortages she should be just fine.
Something they didn’t mention is the issue of using GROSS income to get approved for a mortgage. As a former lender, something didn’t feel right about knowing that I was able to approve someone making 4k gross for a 2k mortgage when they realistically bring in 3.2k.
Downgrading now when they net 10k a month and the house mortgage is 4k is not the answer.
It depends on how much margin they have at the end of the month. If it's less than 1k, i might consider moving and just get a cheaper home.
I'm actually surprised that her house payment is that much. Twice as much as mine for 300k home loan
They have $6k left over every month for everything else. The house isn’t the problem.
@@eggsinsidemeExactly!!!
That’s gross.
This caller is starting to understand that you must live BELOW YOUR MEANS to, eventually, live debt-free.
They already were debt free not including mortgage.
dear lawd i hope no one from our indoctrinational systems reads what you just said.... that mentality is NOT to be taught ever again...... The new democracy has this as a core value, SPEND SPEND SPEND.....
I live in a house that is worth over $500k...but I bought it 10 years ago for $235k. The answer to real estate inflation is clearly a time machine.
Paid 293 in 2020 for a house now “worth” 450 plus, insane world we are living in as I could not afford my house now
Or you suck it up and pay this kind of mortgage now, expecting your wages will increase. When we bought our house 12 years ago it was close to 40% of our income. It’s about 25% now.
This time is an outlier in terms of house appreciation, just like a lot of other things currently rn. Average yearly appreciation of homes past 100 years is extremely low, I would not get your hopes up on keeping that house valuation and especially the appreciation rate
@tracyaf6084 that's called "taking an unnecessary risk in addition to being house poor" not "sucking it up".
My $25K house bought 35 years ago (salary @ $13.5K/yr), paid for in 7 years, is now appraised at $125K. My property tax is higher now than my total house payment ($160/month) was back then. I retired 16 years ago at $50K/yr salary. You don't need a time machine. Just need suck it up and it'll get better with time.
540k home after selling fees and cost around 7% of the homes worth. thats 40k gone from fees almost. 3% to the buying and seller agent. u would breakeven on the home and pay 0 in taxes and also make nothing.
Exactly.
Don’t forget about primary residence exclusions which the hosts failed to mention. They give out these stupid tips and talk about taxes when they do not have a clue as to what they are saying.
I came to say this. Their advice is terrible. I hope they don’t follow it.
Yes, the hosts gave crap tax advice. They clearly have no idea about how capital gains taxes work. Glad you commented this. I did too because it was not in top commemts but this should be.
How are these pearls possibly broke even after paying their mortgage they are still left with $6,000 a month. After I pay my mortgage, I’m left with that 2,350 a month and I’m doing just fine.
Same. I think they are spending money like Congress lol
I think $10k is gross income? Unless i missed something in the call. Thanks.
She never said they were broke.
3yo and 3 month old. Kids, am I right? 😅
@@financenumber2953 They never mentioned net or gross. Makes a BIG difference though.
Wow, our families total monthly expenses are less than this callers mortgage! Live beneath your means people….this is the way!
I am regretting not investing in stocks ever since but still grateful i kept money in the money market. With about $200k maturing soon, i plan investing in the stock market. What stocks should I look into as a newbie to safely grow my money?
Look for stocks that have paid steady, increasing dividends for years (or decades), and have not cut their dividends even during recessions. Alternatively speaking to a certified market strategist can help with pointers on equities to acquire
I took charge of my portfolio but faced losses in 2022. Realizing the need for a change, I sought advice from a fiduciary advisor. Through restructuring and diversification with dividend stocks, ETFs, Mutual funds, and REITs, my $1.2M portfolio surged, yielding an annualized gain of 28%.
Your advisor must be really good, how I can get in touch with them as my porfolio isnt doing well.
Aileen Gertrude Tippy' is the licensed advisor I use. Just research the name. You’d find necessary details to work with a correspondence to set up an appointment.
Thanks for sharing. I curiously searched for her full name and her website popped up after scrolling a bit. I looked through her credentials and did my due diligence before contacting her. Once again many thanks.
Mortgage lenders will lend far more than a buyer can afford. My husband and I used to think that the lenders would only lend what they knew we could repay, but they don't. We got caught once in a house that drained our savings and it was hell
Banks will almost never lose money on a foreclosure. So there really is very little risk for them. Add into the formula the loan officer will face no repercussions for you failing to pay from day one. There is no incentive in the industry to keep you in budget.
Disagree. Nowadays they put you thru the ringer and check up ur @$$ to make sure you can afford.
The 50% thing is also a half truth. Yes, they will qualify you 50%, but that 50% will include insurance and property tax expense.
The ‘House poor’ topic always gets me, in relation to my parents’ situation. I found out just before my dad passed away that my parents’ mortgage payment was 40% of the household monthly take home income and that he didn’t have life insurance. When my dad passed away, the mortgage pmts went up to 62.5% of my mom’s take-home pay…post-retirement the mortgage is 184% of her retirement income! I also found out the mortgage will finish five years after my mom retires. My mom retired last year, is house rich but cash poor, doesn’t want to sell the house and has little investments and retirement income to last the rest of her life. If the mortgage was more manageable, her and my dad could have invested much more in their retirement.
Moral: Get life insurance on both home owners’ lives and make sure your home pmts are ideally no more than 30% of the lowest earner’s take home pay.
She is lucky as hell to have child care @ 150 a week, netting 10K a month, child care is about to cost me 2K a month!!!
stay home then
I recently found a house that I would love to get! Right size, nice layout, good location..BUT it would make us house poor. My husband said we could get the house, but not have money for any extras. I chose to keep our current home and enjoy the extras 😊
When we purchased our home in the early 80's, we were in over our heads too.
We stuck it out. And it seemed forever for us to see the promises of home ownership.
Now I am glad we did.
You sacrifice things like eating out and luxury vacations, in favor of the necessities.
40% of a $500000 income is not as hard as 40% of a $200000 income.
Food, household goods and medical does not cost more because you make more.
They take home $120/yr combined.
@@FR-tb7xh My reference was regarding the percentage of their income that is going towards mortgage payments.
Our house payments came pretty close to 40% of our income in the early years.
We had to sacrifice. It was a struggle.
And we did not have the luxury of being higher income earners. But we were smart and motivated, and resourceful.
Our house payment was twice our rent payments. And the house was brand new. We had to buy appliances, landscape, even wiring.
Weekends were time for Home Depot and Lowes.
We just bought our house on 2/15/24. Its 40% of our net. We budgeted and should have $2500 extra each month. We have no debt and a net worth of about $500K (34 and 36 years old). Yeah its not the 25% cost we wish it was, but this is the housing market. There are no homes less than $300K and I dont think thats going to change anytime soon.
50% of $10k is different from 50% of $1500. They spend their money in stupid places.
We bought a house at the same year and the mortgage was almost 70% of our income. We barely had any furniture, lived frugally and even made extra payments (we didn't have kids back then though). Now looking back it was the best decision we've made. Her situation is well under control if she adjusts her family's spending habits. If she sells the house, when she decides to buy again, there will be more stress in today's market.
Young couple bought a house in San Antonio for $500k its crazy
Buckle down and pay the mortgage. You have plenty of wiggle room.
$150 a week is cheap, I pay $325 for toddler & $375 for infant discounted.
She is right. Buy what is in the budget YOU put together, not with the load the bank is willing to give you. If you buy small and keep it, you will thank your future self. I'm in central Florida and my mortgage on a 3/2/2 single family house with a yard is less than a studio apartment in the same area. That's because I kept the small house after 20 years and didn't upsize with my income. Granted it should have been paid off sooner, but will be in far less than 30 years.
Guys you are missing the 6% commission to be paid to realtors ? . She is not gaining anything.
But once house is sold the rent they pay, doesn’t help build their equity as well.
"Building equity" is just a fancy term people use to make "paying off mortgage" sounds like they are building wealth, while in reality they are just paying back the money they owe to their lender.
If the rent they pay is lower than their current mortgage repayment, they can invest the difference into shares, which would be more fitting to be labelled as "building equity".
$6k left over after mortgage and they are struggling? They should of dove into their budget
They might not truly be struggling. My wife and I sometimes FEEL like we're struggling because we save 25% of our gross income towards retirement. This caller (at least I hope) is in a similar situation and is not truly struggling.
6 k pre tax
@@r6master69 She said $10k a month and people usually when talking about net income give you a monthly number and when talking gross give you a annual salary number
@BigRed2 yeah hard saying. Either way they shouldn't be struggling you're right.
she even said they weren't struggling, it just FEELs like a lot. if they really do net 6K after mortgage, they are fine...
Who told people to over pay for their over priced homes?
The lender. They will try to sell you something you cannot afford by telling you that its normal to spend up to 50% of your income on a mortgage.
Probably had a nice house already but a lot of people got caught up in the trend
Certain cultures value their kids' education over lifestyle and will buy into the bestest school district that they can with their last dollar. That's why homes and rent are higher near good schools and are dumps near bad schools.
@@foxtrotwolf6081Agreed but the corporate investors have artificially inflated home prices.
When getting approved for, they will qualify you up to 45% of your GROSS income, which is really like 60% of your take home pay. Its absolute criminal!!
Here in Canada, 45% of gross will be 97% of take-home. Our tax rate is 53.5%...
@@JWM1984 the OP didn’t include healthcare (medical, dental, and vision which are all separate) premiums per month.
@@Trenton.D Neither did I, just the pure tax bite all alone. Once you adjust for those other deductions, the cashflow will be NEGATIVE.
I understand where you're coming from, that qualifying them seems to convey that it's doable for the prospective home buyer when it's not. But as someone who was paying 60% of take home pay on rent, I would rather be allowed to buy a home than have to wait until I make a higher salary to start to build equity.
Depends on the city too. Some cities it’s impossible to pay only 25% on housing!
Bought in 2014 and we got a mortgage for less than 25% of income..house is paid off now.
These days unless living far from a city thats going to be tough for the majority of people since home values have skyrocketed.
Im Salvadorian and live in California. I love your show! Thank you.! God bless America !
Toronto area most would consider that rookie numbers.
If the house was worth 540k, that's and 8% gain on 500k. Not 40%.
And with 40k profit, there's no capital gain tax. Married people can take a 500k exemption.
More then a year, capital gains won't be based on your income.
Also, I'd love to know if they took the 100K profit from the 1st home and applied it to the current purchase. It was unclear if they financed $500K, or if they only financed $400K.
@@nathanielhenkel9178 She said she used that to pay her student. But she didn't say she used all of it.
You're wrong it's 5 years on a house and 2 have to be the primary residence to avoid long term capital gains, under 1 year it's short term. After the 5 years it's $500k profit or under if married for no capital gains. Might want to not look stupid next time by getting your facts straight.
@@jimmymcgill6778 Thanks! I missed that from the call. Hopefully they were able to put something down as a down payment.
@@meateater4life551 The profit will not be the amount that they sold it for.
This is information i didnt wanna hear but i definitely needed😮💨
I’m sitting on the sidelines right now waiting for interest rates to change for this exact reason, a very average two bedroom house in my area would be 50% of my income and I make six figures. The dollar doesn’t go as far as it used to that’s for sure.
Honestly their situation isn't bad... 10, 000 per month and the mortgage is 4,000? It's not bad considering they can increase their income over time... The 4,000 hurts now but over many years as career continues and you get raises, that will be a deal. Keep the home and make it the forever home
Everything is going up each year: taxes, insurance etc
The principal/interest payment can't be more than $3,000 per month at 6% interest on a 30-year fixed for $500,000. They are throwing some serious money away on HOA, insurance, etc.
Unless they put 0 down.
@@jimmymcgill6778 even at 0 down the payment on principal/interest is just $3k!
Maybe they got an 8% interest rate. 🤷🏼♀️
@@cjhoward409 she said 6%
Property taxes are high in texas, with HOA and insurance yeah near another 1k is possible.
There is also the 2 year exemption on gains to consider..
Their incomes will increase. As long as they have a fixed mortgage, they should just wait and stay where they are. Our mortgage was a bit of a stretch when we bought it, but over a decade later it’s a very comfortable payment.
In this market 500k is not too much house. The Ramsey equation to buy a house only works for high income earners
Only high income earners can afford to buy a house no matter how you look at it. In this market ANY house is too much house for almost anyone.
I got so lucky I bought a new construction in 2020. Which is now 25% of my take home now …
I was approved for a 20k cc limit and only make 4500 gross per month, I said 4k limit will be plenty. Just because they allow it doesn't mean it's a good idea.
Sell the truck and everything you can. Pick up extra work and through it at the mortgage principal. Then go to the bank and ask for them to recast the mortgage. This will use your early additional principal payments reduce your interest and monthly mortgage payment. Every $10,000 reduces your monthly payment by roughly $80 at a 6% interest. But remember after the early principle payment you have to ask them to recast the mortgage, or the monthly payment stays the same and only the length gets reduced.
Our household expenses aside from our mortgage are $2700 (that includes us setting aside some money for a vacation and the occasional date night. We have 1 less kid but we are planning for a 2nd. I really think they could buckle down and make it work, I feel like they easily have an extra 2-3k a month if they just lived on a budget.
Nothing in this call is correct, plus wait a little and refinance with a lower %
It seems like half of Ramsey's callers problems begin with the sentence "We bought a house"
Good lessons to learn, from a common desire comes common problems to avoid.
Mike! How ya been!
That's because they overspend. Stick with the Ramsey suggestions and you'll be safe. A $4000 house payment is asinine!!
And thus half of their income along with it.
I live in MA. Have fun finding a livable house for less than 4000 a month 😂
They don't have to worry about capital gains with only $41K increase on the value. If this is their primary residence, they don't pay anything up to $250K gain.
That would be 500K for married couples.
@@aquaspindrift1130 - Right, so she is wrong saying about 15% gain tax
@@HelloWorld-hb7ytregardless it’s only 15% of 41k so hardly anything 🤷♂️
They've only owned it for a year. You have to own and live in it for 2 years (2 of last 5 years) to qualify for the the capital gains exclusion.
Husband is sharing income with his dad at the body shop.
Dad either needs to retire, or son needs to open up his own body shop the opposite end of town.
According to Dave's plan. Its 25% on a 15 year mortgage! They have 40% on a 30 year. They can afford about a $280K home if you listen to Dave.. Good luck...
Probably a trailer or a small 1 bedroom. Not worth it
@@thedopplereffect00 Dave is never wrong. Don't you watch his videos?
Because they spend 100k of the previous home equity. They should have bought a cheaper home. Or waited to pay off all their debt before selling.
I was at 1000 month mortgage but went up to 1100 250,000 house when I bought it making about 150,000 it’s a 30 year and I’m almost out of baby step 2!!! Everyone makes mistakes but I’m glad the house wasn’t one of mine
Why did they buy a home in the 500 thousands? She said they're maxed out. Look for a home about 300 thousands they would be more comfortable as a family.
Bought a house with nothing down and no equity in it. What happens when the home price value drops down to 425k??
I bought half the house I qualified for. No regrets at all.
The mortgage numbers don't add up. A $500k house, 30 year amortization, 6% interest rate, CANNOT generate a $4k monthly payment. Even if you have a 0% down payment and borrowed the entire $500k, your monthly payment is $3k. Either your interest rate is much higher, or your amortization is 15 years with a 5% down payment.
Correction on taxes. 6%interest on 500k the first yr =30k = 2500/mo in interest alone. Then, principal is 500k÷(400 months or 30+ yrs) is another 1250/mo. Plus, Texas taxes maybe3% of 500,000 is 15000/yr which is 1250/mo.
@@amandaowens7568 That's not how mortgage principal and interest are calculated. The payment is fixed, but the ratio of interest to principal is adjusted after each payment.
$500k, 6% interest, 5% down, 30 years will yield a monthly payment of $2847.86. The first year, you will pay $28,341 in interest and $5,833 in principal. As the years go on, the interest amount will decrease and the principal will increase. By year 29, you're paying $3,008 interest and $31,167 principal.
Use a amortization calculator to figure out the actual mortgage numbers. It's not the same as calculating interest on your savings account.
Total mortgage payments in Texas can include property taxes and home insurance.
When rents are nearing 2k for a 1 bdrm here in NY, you best believe 40% of income is going towards rent.
The issue is the economy people have no choice but to be squeezed tight. There is no reason a family making 10k should have a mortgage that is 40% of their income but unfortunately decent housing is so unaffordable that they have no choice
But they have to live somewhere. What would it cost rent a 2 or 3 bedroom home? Plus rent will continue increasing every year and your income might not keep up. Your mortgage payment is fixed so income can catch to the 25-30% target.
Easy to find 2 bd well below 4k, specially in San Antonio. invest your savings until you buy a house with a higher downpayment.
It is not bad at all! I payed over $800 for rent when we made $2000 a month after tax. The problem was that we could not get anything cheaper. That was years ago. We got more money now and a low mortgage rate.
6k is plenty, but it sounds like they may just like that large cushion for other usage, or perhaps a spending habit that needs to be addressed?
10% Down payment + 30 year Mortgage + 35% of total take home as monthly mortgage = practical situation today!
Work until you die is the answer always
It's not just capital gains.. realtor fees, title, closing costs, etc. are all very expensive for the seller
If she is going to ask him to sale his truck, she needs to ask herself, what am I willing to sale? May not be dollar for dollar, but it should be something that gives her an “ouchie” moment too
You don’t pay capital gains taxes on primary residences up to the first $500k of gains if you’re married. She wouldn’t owe any capital gains
she HAS to mean 10k before tax. otherwise theyd have a ton of money left over after the mortgage and daycare
I think what this family should do depends on how much margin they have left at the end of the month. If i didn't have enough to toss extra at the mortgage and still invest, yeah, i might downgrade until we can save a stronger downpayment. If they have $1,500 margin or more, i would just sit tight until we can either make a bit more or see if any other options can pop up.
Short term capital gains on selling your house are reduced by any sellers closing costs.
Don't forget that you can deduct the real estate fees and other selling fees from the capital gain amount.
I think Jade is becoming my favorite personality on the show.
They are all good but she’s becoming my favorite.
Mine too! She dresses so cool as well😎
Do you include property taxes in the 25% recommendation or it’s just for principal and interest?
They include everything. Principal, interest, taxes, insurance and HoA
We need the fed to bring rates up to 10%. This will cause mortage rates of 13% plus. Will this destroy the economy? 100%. However this will drive house prices down at least another 30%. How did i arrive at this conclusion? Because the median home if it stayed the same price of around 410K, would yield a payment after 20% down of nearly $3,700 before taxes/ insurance. If you include tax/insurance you would be at 5K payment ( for median home!) Last time i checked no bank can write a loan with a payment that equals 100% of the median household income take home pay!
Hubs and I are in a similar situation, bought a house at a REAL good interest rate 2.6% on a $366k home. Unfortunately he lost his job and took a pay cut now the mortgage is half his monthly earnings but we looked and downsizing wouldn't help us we'd be paying just as much for a smaller house. So we just buckle down don't spend where we can and make it work.
They definitely shouldn’t sell the house. That’s a horrible advice for them, in my opinion. In fact, I was in the exact situation 20 years ago when I bought my first house. They have margin to make that work. Maybe a little tight, even a little stressful. But it will hurt a lot more otherwise. Imagine paying agent fees, moving expenses, rent, etc., then attempt to back to home ownership again. Few of my friends did that and never owned a home for many many years. Btw, I definitely agree with most other comments that mortgage under 25% take home (even 30 years) is nearly impossible in many markets.
I guarantee she was the driving force behind the move. That's why she said "we"
owning a home is a liability until you sell it or unless you rent it out for more money than what your mortgage
This is why Dave always asking gross income is important. What else is coming out of their paychecks? Are they over investing in retirement accounts, paying child support, etc.? Budgeting?
At the very least stick it out for a second year. Then every time you get an increase in income pay extra principal. Not just once but every month. Property values increase over time. Keep your budget crazy tight.
they earn 10k and have a 4k mortgage. Does that not leave 6k? What's the problem?. This is clearly about choosing a certain lifestyle to afford a certain house
It won't be that much CGT because of realtors and closing fees.
This is the situation I’m in too… and the house was way over priced than what it should’ve been worth 😢😢it’s my first home
My house is 130 years old, it creaks, it sags some places, slapped a new roof on it and so thankful that for the years my wife is stay at home as we raise our children that our mortgage is only a small part of what we earn
This sounds like the exact situation my wife and I could fall into. In our first home, could get ~$130k equity, bringing home $11k a month. But our mortgage would be $3.5k a month for the home we’re hoping to get. A good reminder to make sure we’re ready for a new home.
This is the thing I disagree with when it comes to their Ramsey qualifications. When you are netting that much and if your mortgage is half I don't see any peoblems. With 6k to work with every month after mortgage their is absolutely no reason they should be feeling like this. 6k is plenty to live on!!
Well they gross 10k a month. But probably bring home 7k. So that leaves them 3k a month. That’s why they are hurting. Combine that with car payments, child care, utilities, food, they broke. Not to mention over time that monthly house payment is gonna go up due to escrow. Mines increased $100 a month year over year for 3 years now because taxes and insurance keep going up. My house payment is 8% of my gross and I think that’s too high.
Pay the property tax yourself once a year. Otherwise the mortgage company is collecting interest on your early payments
What? After paying my mortgage I have 3k left. How are these people having a difficult time with 6k? And I’m in los angeles btw.
So they have $6,000/month TAKE HOME to pay utilities, daycare, and food? What is difficult about this?
The house is not the issue. They spend way to much money elsewhere.
@@svan3878 exactly. A 40% income mortgage payment is irrelevant when what's left over is more than most families get total.
Theres no way they can't get by with $6,000/month after the mortgage is paid. That's lunacy
selling is more than the Capital gains....paying commissions fee.....they have 6K /month in spendable income...you can make it work!!!
You dont pay taxes on profits from the sale of a primary residence on the first $500,000. So they wont pay taxes on that equity.
Dave likely would have said, it was a dumb-butt purchase but so long as they can get tough, ride it out
many people live off 6K a month. it's not about percentage necessarily.
If this is the forever house, I don’t agree with selling for a cheaper mortgage. They make enough money, it really just depends on their priorities/ lifestyle beyond their mortgage. We personally own a farm that has a mortgage that’s about 50%. We don’t really enjoy travel, and have minimal expenses beyond our mortgage. We are doing just fine.
Why are we not factoring in the insane relator fee when selling.
What happens to the 6k they still have after paying the mortgage ? Thats a 90k income with an already paid mortgage
I just hope Dave reviews these calls.
You think he's got time for that?
40% isn't that bad!!!
Not everyone can do 25%
They didn't mention realtor commission! Don't sell!!!