I personally chose to take out a 30 yr loan, and apply additional payments to the principal ONLY to pay it off in 15 yrs. The interest rate for a 30 yr is higher, but I did the calculations and the difference in total interest over the life of the loan was minimal. My peace of mind of having that lower payment if hard times came was much more important to me. Everyone has to do what they feel is best after researching all options.
Hmmm I see 🤔 that’s good though & ur right it’s really on the person’s vision and key factors that’s really gonna be best for thier life & like future situations they may encounter
Thinking about doing this exact thing. Still pay more, making sure it goes as principal only. But as u said , incase something happens, there's a cushion .
Agree. Doing this also. Dave would not like it but that's ok. His rules really apply to the core of people with little or no discipline. This method does help in the event of tragedy striking, which is also a Dave-supported idea.
My father, RIP, advised me and my husband to get a fixed 30-yr mortgage but pay it like a 15-yr mortgage because we could go back to the lower 30-yr monthly payments during financial emergencies. My husband was laid off twice but we remained financially secure and have lots of equity! ;-) PS - Forgot to mention we also had the self-discipline to put down 20%, even though the bank did not require that, and put what we would've paid for the mortgage insurance towards paying down the mortgage as well.
That’s what Dave should teach. A 15 year mortgage is pretty much impossible unless you live in the middle of nowhere. But of course, try to pay extra each month and pay down the principal.
@@magna428 Dave teaches what e teach. It’s his thing and what worked for him after his past personal financial disasters Heck just focus on your own personal finances thinking and doing the math yourself instead of worry about what a debt multimillionaire should do. And it’s “ the middle of nowhere” where you live if there is even such a thing anymore. You can’t speak for the entire U.S.. because 15 year loan is done all the time where I live by people buying homes they could truly afford. A friend of mine just bought a fully remodeled garage style condo ($170k) with a 20% down payment and decided on $500/mo. with a 30yr instead of $1100/mo. with 15 year mortgage and pay an extra $200-$300/mo. biweekly to principal. Yeah I had another friend in California saying the same thing as you with that “middle of nowhere” statement like it was scripted. I sent her a link to this condo(after it was sold) and other cheaper homes near me and it shut her up quick. Being that it was a 1480 sqft three bedroom and the fantastic island kitchen blew her away.
@@magna428 the problem is most people will hear that and NEVER end up paying a 30 year like a 15 year. Dave has to teach things in a way that prevents people from getting in their own way.
Most Americans are doing well financially so a 15 year mortgage is no sweat. Most of the people living in my area have their homes paid off, and their second vacation homes are close to being paid off with the 15 year mortgages. We did the 30 year and try to pay extra.
I’ve been diligently working, saving and contributing towards financial freedom and paying off my high interest mortgage, but the economy so far since the pandemic has eaten away most of my portfolio, what I want to know is this: Do I keep contributing to my portfolio in these unstable markets or do I look into alternative sectors.
Yeah, financial advisors could make a lot of difference, particularly in a market such as this. Stocks are pretty unstable at the moment, but if you do the right math, you should be just fine. Bloomberg and other finance media have been recording cases of folks gaining over 250k just in a matter of weeks/couple months, so I think there are a lot of wealth transfer in this downtime if you know where to look. I have been using an FA since 2020, and I return at least $30k ROI, and this does not include capital gain.
For me, Sonya Lee Mitchell turned out to be better and smarter than all the advisors I ever worked with till date, I’ve never met anyone with as much conviction.
I just googled her and I'm really impressed with her credentials; I reached out to her since I need all the assistance I can get. I just scheduled a caII.
My wife and I had a concept of buying a home so that if something happens that either one of us or our jobs, we would still be fine. So we have both been laid off and that system has worked for the past 16 years. No matter what, we never have to leave the home.
@@carojames6776 That is not the intension. Our lives are set up so that if there is a major tragedy, the other is not instantly thrown into more turmoil. If the house payment was based on two incomes, having a child can almost result in needing to sell the house. The half income rule prevents a lot of over spending.
@@abrahamflores2566 I'm not defending Dave's math (and I'm not a Dave disciple, so I don't agree with all of his viewpoints). I'm simply observing the frustration many executives feel when bean counters want to tell you how many beans are in the can (when all you want to know is what type of beans they are).
Finally a caller from Rochester, my hometown 😊 They have a great income for that area. The house prices there are actually really low. A huge difference from where I live now, just outside of DC. Him and his wife are doing well and will be fine.
@@danielschmidt4141 no, it actually sucks. When you have your house paid off you don’t need a very high personal income. I can get my income extremely low by the property taxes will always be high and going up
A 15 year payment is not realistic for most people especially now with home prices being high. A 15 year mortgage sounds great if you can afford the payment. But most can not. So its not happening for most borrowers.
Median Income (After Tax): $41,250 At 25% of your monthly income you can afford a payment of $859. This includes Tax, Interest, HOA, and Insurance. In America, that literally buys you a cardboard box. At $859/month you can barely afford a $100k home. When the median price for a home in America is over 4x that price, the standard being taught here are unattainable for any single individual.
First world problems. Go to a third world country first and basically live in a cardboard box. No wood floor. Then come back to the USA and look for a town and house you can afford. What’s really going on here is I want to live here, where the taxes are insane, with a dishwasher, two car garage, hard wood floors and a remodeled kitchen that I will remodel when I mortgage it because I don’t like their taste in remodeling……..whew. Enough, be uncomfortable a little bit will you?
That's why you save for a big down payment. A bigger down payment also means no PMI. You also need extra cash/savings on top of that when you buy a house for repairs....no more calling the landlord. Either you fix it or pay someone to fix it for you. Save, save, save.
I remember when he was telling people to pay cash for a house. My dad did that in the 70's as a blue collar worker. It is simply not possible now. I think he needs to update his advice. Their is nothing wrong with a 30 year fixed especially for a first time home buyer. You will be renting forever if you listen to this guy.
I would agree to a certain point. People are literally getting dumber though. Average salaries have increased drastically and average age that kids live at home has increased into their 30’s. People have no common sense or any discipline whatsoever. I worked with a girl who was living at home. Had an MBA and was making $80k a year. She could have EASILY saved $50k in CASH a year but chose not too. Two years with parents at that income and $100k in the bank could get you whatever house she wanted. But shoes and eating out was more important
Dave’s right though. He’s teaching a concept for people to synthesize and apply. The caller is memorizing it like it’s a hard rule. Same as learning in school. Don’t memorize the text book; learn the concept and then use it.
The unfortunate reality is that for average income earners, home ownership is not realistic right now. Prices have simply gotten too high. If you're OK with your home owning your life, sure, stretch yourself. I know a few people whose mortgages are 50% of their income (even before the interest rate hikes) and they are stressed AF. Either downgrade the home, or wait a couple years.
You know a few people? Lol I live in South Florida and everyone I know pays nearly 50% of their income on housing. You are not smarter than the rest, you just live in a cheaper area. Rents are even higher than mortgages where I live.
I’m 35 and I have about $250k liquid in savings which I plan to put towards becoming a homeowner but based on the current high prices on real estate, do you suggest I hold from buying or do stocks for now?
True, I mostly just buy and hold stocks, but my portfolio has been mostly in the red for quite awhile now. Unfortunately to be able to make good gains, you’ll need to be consistent and restructure your portfolio frequently.
In my opinion, it was much easier investing back in the 60s but it’s a lot trickier now, those making consistent profit in these times are professionals reason I’ve been using an advisor for the past 5 years to consistently build my portfolio in preparations for retirement.
Melissa Elise Robinson is the coach that guides me. She’s a verified coach and she helped me see that returns can be made in both bull and bear markets. She covers things like investing, insurance, making sure retirement is well funded and looking at ways to have a volatility buffer for investment risk, lots of things like that.
PITI (Principal + Interest + Taxes + Insurance) should be no more than 25% of your take home pay (I would recommend "take home pay" be everything except for your retirement which should be 15% of your gross pay) on a 15 year fixed rate mortgage; Dave says the 25% can be just your gross pay minus just your taxes. Also, don't forget that Dave recommends giving to your religious institution and/or to do charitable giving. He doesn't give a specific number, but he tells people that what he does is that he gives 10% of his after tax income to the church and he also states that he does other giving aside from that. Dave also doesn't insist on at least 20% down on your first home, but he does if you're selling your home and moving into another. This will be hard for a lot of people in this environment and depending on where you live. Dave will never tell you to deviate from his principles. You could also do it on a 30 year loan and pay it like a 15 or refinance although many people don't have the discipline to do this. In the end, it's all about getting out of debt, staying out of debt, living below your means and saving for retirement while still remembering to give money to your religious institution or some charity if you don't have one. You have to be intentional with your money, be smart and be patient and maybe learn to compromise on your home/bide your time 🙂
The Caller should pull the trigger on a $200k house. Your good and the shovel is getting bigger. The 25% if a general guideline, don't sweat it and get out of renting.
Many buy a large house planning for a large family. After one child, they are forced to sell. Also, if you have an adjustable rate mortgage, it will go up until 2024 or more. When you go broke there are sharks in the water. I enjoy seeing young people doing the math.
As a mortgage originator this guy made my head spin. It sounds like this guy has no idea what he wants and I would be apprehensive to give him all these options just to have him say hes not interested
Hi Brian. I’m looking to buy a home in the near future. Is the expectation that you have to know what you want already when going to a mortgage originator, or can you meet with them to ask questions?
@@allan2263 yes and no. I like to ask what your goals are to determine what is your best option. Some people want the lowest payment which means a 30 year loan. Some people want to own their home and pay the least in interest and fees which means a 15 year loan. And there's numerous other things that go into a loan. I haven't watched this particular video in a while but it is great to ask questions but I would hate to answer 100 questions just for the borrower to back out
A mortgage meeting a 5000 monthly income at 30 percent take home is truly non-existent anywhere in the country. I wish they would adjust this based on what actually exists today in 2023 not 1990
A 15 year mortgage is not realistic for most, based on monthly payment amount. Get a 20 or 30 year and look to pay off earlier, by making more payments when you have it. I had a 20 year mortgage……..payed off in 14.
Exactly this is the way. Use a 30 and pay off extra when you can. But give yourself some flexibility. And don't let yourself be priced out, because houses aren't as cheap as where Ramsey lives.
The answer to this guys question is move away from a place that you pay over 6k a year in property tax. There are 40 plus states where you can do that.
They are calling a WRONG person Their plan doesnt work Really depends on how much u make, after mortgage having like 3k should be fine For sure 30 years not 15 Oh cry more, my house is 9500 property tax amd my mortgage is like 40% take home Its new york
Notice how Dave never runs the math on air to tell people their max loan amount. He just says his typical buzz words and mutes the calls before it gets into the details.
Currently it’s mostly unrealistic for average income earners to be responsible homeowners unless you’re a dual income household without kids. So you either have to become a high income earner or hope for a better opportunity.
Sorry, but it is idiotic. Average price for houses in my area is $350k. Property taxes are 3%. Means to have 25% rule for 15 years my income should be 12k per month. It makes impossible to buy a house in the nearest future. Household income 114k net is crazy. Pay off property as fast as you can is also funny. My current mortgage payment for my house 30 mortgage is 2150. From these 2150 just 600 is interest and 500 principal. Rest is escrow that I'll keep anyways after pay off my interest and principal
25% is extremely unrealistic for the average american unfortunately. At 100k income that is roughly a 250-275k house depending on interest and income tax. Where i live you are lucky to find any house less than 350k. Im not saying his rule is not smart, but i am saying it is unrealistic
That’s an unrealistic guideline for 90% of Americans. If you make 80k a year, a weekly take home pay is around $1,100. Tell me where you can find a house with that mortgage payment on a 15 year fixed rate? It would either have to be a really cheap house, you would have to have a super down payment, or you are making really good money. Dave’s guidelines is for the 10% of Americans who make really good money.
Was actually achievable back then for a big chunk of earners though. Realistically right now only like 10% of couples and 1% of individual earners can afford that.
This guy tried flexing online, yet showed his plan is double Dave's plan (30 year vs 15 year mortgage), kept rambling and not answering Dave's questions to the point of pissing him off, and also demonstrated that he does not understand Dave's baby steps (his ridiculous question about retirement at step 3b). He spoke about calculators and fancy math, and I expected him to say he makes $150k. He just makes shy of $70k...
I really don’t get how this is possible for anybody. The average house about me is around $500,000. Even if I were to get a very conservative two bedroom one bathroom house it would be about $350,000 on a 15 year fixed rate. I would need to take home about eight grand for a month just to qualify for that.
Ramsey is out of touch with todays home buying. I live in Pittsburgh where it’s one of the cheapest places to buy. The median household income is 54k and the median house price is ~219k. Do the math with a -15yr mortgage with a 5% rate your looking at 1400 a month payment before cost of anything else after your 20% down if you even have that! Now imagine higher cost places like Tampa Florida etc… that’s just median math talking too. I’m glad I make way higher than that being single but I still rent with roommates.
I'm young, I live in a very expensive area but want to continue to live here for a decade for higher pay and career experience. Should I just wait til my 30s when we move away to buy? Or is 10 - 12 years too long to sit on the sidelines when it comes to home ownership?
Some places with today’s current interest rate you can’t do even 25-30 percent. I mean you could but it would be pointless because you would either be in the worse neighborhood, or do 100k+in reservations
@@AlecArtComics well if you call figuring life out with my new wife as we both go through law school debt free from earned scholarships and saved money infantile and simplistic, guilty as charged. We just found a nice cheap place to live for the time being, and our projected income after law school is very good. Think before you speak. Better yet, don't speak on manners in which you are so woefully uninformed that you sound like a pathetic child. Good day.
So is the 25% calculated before or after mandatory pension deductions? And is it after retirement? I basically have the same question as this guy and I still don't know 😂
It would be cool to see Dave Ramsay come out with advice that is actually actionable. I make 151900/yr at 29 which makes me a top 4% individual earner for my age. If I wanted a 25% post-tax income mortgage payment on a 15-yr mortgage with 2.25% down (section 184 loan), then my housing budget is around 260k (the avg national housing price is around 420k). I would need to raise my income to 245k/yr to afford the avg national home price at current interest rates… wtf. Ramsay should just tell people home ownership is too expensive for most people right now and renting temporarily is fine. A 30yr 420k mortgage with 2.25% down right now will cost me 3k/yr with taxes/insurance included. I have a lot of 1bd appts near me renting at $1300-$1500.
I have over 300K in investments not including IRAs. I am over 60 and retired due to disability. Hispanic Spouse is 56 and can't find anyone to hire him full-time with a Master's degree. We owe 206K on house mortgage. My question is, should we pay off the mortgage and get our money out of investments, mostly ETFs with a family member's investment company or buy property to use in case with a house on it and 20 acres of land. We live in DC area, inside the beltway and being in Maryland isn't the best right now. Husband is afraid to buy property in West VA just in case he gets a job in a red state other than West VA. I am seeing us lost money every month for the first time ever and feel it is not wise to keep it there any longer. Please help my family. We are desperate for a solution.
Assuming you have equity in the house and that prospects aren't good that y'all are going to be able to keep up the mortgage and utilities, why wouldn't you cut the house anchor, it sounds like it's becoming a noose around your neck.... Even if you have to rent a less than ideal apartment til you know where you're going for his job... Just have to be disciplined not to touch the money you get from the sale and keep it for a house
A 200K property??!! Wow, that’s not even enough for the DOWN PAYMENT on a 2 bedroom condo in Vancouver. Where does this guy live?! Should probably move there.
Let's see, 25% take home pay per month to buy the cheapest piece of crap on Long Island you can find, you'd have to take home about $16,000 per month..... :/ And that's based on a 30 year mortgage. 15 year you'd need about $22,000 per month take home.
I'm 21 about to buy my first home. My payments are 1500 and that including HOI and I make roughly 4800 monthly. I hope I didn't make a mistake :/. House was 210k but beautiful and seemed like a good deal.
31% home 15% retirement 25% savings Totals 71% Leaves you 29% to live off. Can you live off 29% of your income (groceries, life insurance, medical insurance, cable/phone/internet, restaurants)? If you can, you're fine.
You live in Burundi? As a Floridian a 210k house sounds wild to me. Lol Here you gotta go for 500k+ for something mildly decent. I split mortgage with my partner. I pay 1.8k and make 4k. Sounds like you are fine.
![Seungmin "그렇게, 천천히, 우리(As we are)" | [Stray Kids : SKZ-PLAYER]](http://i.ytimg.com/vi/kAzmhLHePqU/mqdefault.jpg)
I personally chose to take out a 30 yr loan, and apply additional payments to the principal ONLY to pay it off in 15 yrs. The interest rate for a 30 yr is higher, but I did the calculations and the difference in total interest over the life of the loan was minimal. My peace of mind of having that lower payment if hard times came was much more important to me. Everyone has to do what they feel is best after researching all options.
Hmmm I see 🤔 that’s good though & ur right it’s really on the person’s vision and key factors that’s really gonna be best for thier life & like future situations they may encounter
Thinking about doing this exact thing. Still pay more, making sure it goes as principal only. But as u said , incase something happens, there's a cushion .
Agree. Doing this also. Dave would not like it but that's ok. His rules really apply to the core of people with little or no discipline. This method does help in the event of tragedy striking, which is also a Dave-supported idea.
Not to mention if your interest rate is low and you are young you can invest the difference and be better off in the long run
That’s what we’re doing. I’m ultra disciplined though.
"stop, stop, stop....what's your question?" - 🤣
My father, RIP, advised me and my husband to get a fixed 30-yr mortgage but pay it like a 15-yr mortgage because we could go back to the lower 30-yr monthly payments during financial emergencies. My husband was laid off twice but we remained financially secure and have lots of equity! ;-)
PS - Forgot to mention we also had the self-discipline to put down 20%, even though the bank did not require that, and put what we would've paid for the mortgage insurance towards paying down the mortgage as well.
That’s what Dave should teach. A 15 year mortgage is pretty much impossible unless you live in the middle of nowhere. But of course, try to pay extra each month and pay down the principal.
@@magna428
Dave teaches what e teach. It’s his thing and what worked for him after his past personal financial disasters
Heck just focus on your own personal finances thinking and doing the math yourself instead of worry about what a debt multimillionaire should do.
And it’s “ the middle of nowhere” where you live if there is even such a thing anymore. You can’t speak for the entire U.S.. because 15 year loan is done all the time where I live by people buying homes they could truly afford.
A friend of mine just bought a fully remodeled garage style condo ($170k) with a 20% down payment and decided on $500/mo. with a 30yr instead of $1100/mo. with 15 year mortgage and pay an extra $200-$300/mo. biweekly to principal.
Yeah I had another friend in California saying the same thing as you with that “middle of nowhere” statement like it was scripted.
I sent her a link to this condo(after it was sold) and other cheaper homes near me and it shut her up quick. Being that it was a 1480 sqft three bedroom and the fantastic island kitchen blew her away.
@@magna428 the problem is most people will hear that and NEVER end up paying a 30 year like a 15 year. Dave has to teach things in a way that prevents people from getting in their own way.
Most Americans are doing well financially so a 15 year mortgage is no sweat. Most of the people living in my area have their homes paid off, and their second vacation homes are close to being paid off with the 15 year mortgages. We did the 30 year and try to pay extra.
@@austingotwalt
I paid off my 30yr in nine years.
Never concerned me what others did with their mortgage at all.
4:49 😅 I SCREAMED LOL the way this man went on and on
I’ve been diligently working, saving and contributing towards financial freedom and paying off my high interest mortgage, but the economy so far since the pandemic has eaten away most of my portfolio, what I want to know is this: Do I keep contributing to my portfolio in these unstable markets or do I look into alternative sectors.
Just try to diversify your portfolio to other market sectors, that way your investment is balanced and you don’t get to make so much losses.
Yeah, financial advisors could make a lot of difference, particularly in a market such as this. Stocks are pretty unstable at the moment, but if you do the right math, you should be just fine. Bloomberg and other finance media have been recording cases of folks gaining over 250k just in a matter of weeks/couple months, so I think there are a lot of wealth transfer in this downtime if you know where to look. I have been using an FA since 2020, and I return at least $30k ROI, and this does not include capital gain.
Would you mind telling me how to contact this specific coach using their service? You seem to have the solution, as opposed to the rest of us.
For me, Sonya Lee Mitchell turned out to be better and smarter than all the advisors I ever worked with till date, I’ve never met anyone with as much conviction.
I just googled her and I'm really impressed with her credentials; I reached out to her since I need all the assistance I can get. I just scheduled a caII.
My wife and I had a concept of buying a home so that if something happens that either one of us or our jobs, we would still be fine. So we have both been laid off and that system has worked for the past 16 years. No matter what, we never have to leave the home.
Buying cash you mean?
@@iknown0thing no it means that we purchased the house with a mortgage based on one income.
That's what my mother told me, now our mortgage can be paid by one income. Glad i listened to some of her advice.
You hold on TIGHt to that house.
@@carojames6776 That is not the intension. Our lives are set up so that if there is a major tragedy, the other is not instantly thrown into more turmoil. If the house payment was based on two incomes, having a child can almost result in needing to sell the house. The half income rule prevents a lot of over spending.
“Don’t over NERD this” 🤣🤣
“I couldn’t do it, it was 25.5% 🤓🤓🤓” lol
I love how Dave got frustrated by the overanalysis. I hate it when I ask our VP of Finance what time it is, and he builds me a watch instead.
Lolz true. People are over analyzing things that they dont get into the point of the problem and solve it
Dave got frustrated because he knows that if he runs the math on air for a 15 year mortgage it would shine a light on how ridiculous his advice is
@@abrahamflores2566 Yep.
@@abrahamflores2566 Yeah
@@abrahamflores2566 I'm not defending Dave's math (and I'm not a Dave disciple, so I don't agree with all of his viewpoints). I'm simply observing the frustration many executives feel when bean counters want to tell you how many beans are in the can (when all you want to know is what type of beans they are).
Investments are the roots of financial security; the deeper they grow, the stronger your future will be."
The deeper your investment roots, the stronger your financial security will be in the future.
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I would love an introduction to an adviser who can help me strengthen my financial roots.
My CFA NICOLE ANASTASIA PLUMLEE a renowned figure in her line of work. I recommend researching her credentials further.
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Finally a caller from Rochester, my hometown 😊 They have a great income for that area. The house prices there are actually really low. A huge difference from where I live now, just outside of DC. Him and his wife are doing well and will be fine.
I’m surprised Dave let him go on that long.
😂 when Dave cut him off to ask what was the question. I am getting a t-shirt that says "don't overnerd this"
That was funny
The guy trying to sound smart and Dave telling him to shut up and go to the point it’s shuts priceless!
$500 a month for JUST property taxes…..I’d be moving yesterday
Imagine the insurance costs too!
If you think that’s a lot for property taxes don’t ever move to Texas 😂
@@TheTurdballs420 No individual state income tax though so its not too bad.
@@danielschmidt4141 no, it actually sucks. When you have your house paid off you don’t need a very high personal income. I can get my income extremely low by the property taxes will always be high and going up
You need to see PT here in NJ
A 15 year payment is not realistic for most people especially now with home prices being high. A 15 year mortgage sounds great if you can afford the payment. But most can not. So its not happening for most borrowers.
Buy less house
Consider yourselves lucky in the US. Here in Australia you’d be extremely lucky to get any house under 500-700k
I refinanced from a 30 to a 20 back in January 2021 due to the insanely low interest rates at that time. Basically kept the same payment.
Median Income (After Tax): $41,250
At 25% of your monthly income you can afford a payment of $859. This includes Tax, Interest, HOA, and Insurance. In America, that literally buys you a cardboard box. At $859/month you can barely afford a $100k home. When the median price for a home in America is over 4x that price, the standard being taught here are unattainable for any single individual.
It also means to keep savings towards a down payment in order to have a mortgage that low.
First world problems. Go to a third world country first and basically live in a cardboard box. No wood floor. Then come back to the USA and look for a town and house you can afford. What’s really going on here is I want to live here, where the taxes are insane, with a dishwasher, two car garage, hard wood floors and a remodeled kitchen that I will remodel when I mortgage it because I don’t like their taste in remodeling……..whew. Enough, be uncomfortable a little bit will you?
@@TedFarabee yeah no, not the same argument.
That's why you save for a big down payment. A bigger down payment also means no PMI. You also need extra cash/savings on top of that when you buy a house for repairs....no more calling the landlord. Either you fix it or pay someone to fix it for you. Save, save, save.
@@cynthiaclark4990 I only had a 3% down payment
I remember when he was telling people to pay cash for a house. My dad did that in the 70's as a blue collar worker. It is simply not possible now. I think he needs to update his advice. Their is nothing wrong with a 30 year fixed especially for a first time home buyer. You will be renting forever if you listen to this guy.
😆 dude come on. I mean...he has his own RUclips channel...and is rich....I think I'll listen to this guy
I would agree to a certain point. People are literally getting dumber though. Average salaries have increased drastically and average age that kids live at home has increased into their 30’s. People have no common sense or any discipline whatsoever. I worked with a girl who was living at home. Had an MBA and was making $80k a year. She could have EASILY saved $50k in CASH a year but chose not too. Two years with parents at that income and $100k in the bank could get you whatever house she wanted. But shoes and eating out was more important
@@TheMopar97 sounds like it was more her parents fault than her fault
@@MS-ey3lb so you listen to anyone who is rich and has a RUclips channel?
@@kbanghart of course not. If you know anything about Dave Ramsey..then you know it's more than just a rich guy with a RUclips channel
Christine's face when Ramsey was like "oh shut uuuup." I can imagine how some of his cast may feel when he goes a bit too far lol.
Yeah he has been a little big for his britches for a long time.
Dave’s right though. He’s teaching a concept for people to synthesize and apply. The caller is memorizing it like it’s a hard rule. Same as learning in school. Don’t memorize the text book; learn the concept and then use it.
Nah, I enjoy unfiltered Dave. People are too soft. He's like the relative that slaps sense into you so you get it.
This clip could have been half the length. Dude was giving TMI.
Dave has a particular southern hick high vernacular that many people are not familiar with. It’s a thing.
Dave getting more lenient on his unrealistic rules
There not rules you can whatever you want with your money
The unfortunate reality is that for average income earners, home ownership is not realistic right now. Prices have simply gotten too high. If you're OK with your home owning your life, sure, stretch yourself. I know a few people whose mortgages are 50% of their income (even before the interest rate hikes) and they are stressed AF. Either downgrade the home, or wait a couple years.
My existing situation is I'm paying 40% towards my mortgage 😳
@@kbanghart How is that going for you? I hope you're managing OK.
Rents around here (if you can find something to rent) are more than my mortgage/house insurance/ taxes.
Or get a smaller house.
You know a few people? Lol I live in South Florida and everyone I know pays nearly 50% of their income on housing. You are not smarter than the rest, you just live in a cheaper area. Rents are even higher than mortgages where I live.
Dave is gonna say. 20% down on a 15 year mortgage. Says it every video
Imposible in California and I make 100k in Northern California not the Bay Area.
20% down is useless advice when 95% of the population needs a six figure downpayment to make the 15 year mortgage work.
@@Royalewithcheesee move out of the komi state then.
20% down for 15 is a lot different on 300k then on 850k.
he doesn't usually bring up 20% down. only 25% of take home on a 15-year mortgage.
I’m 35 and I have about $250k liquid in savings which I plan to put towards becoming a homeowner but based on the current high prices on real estate, do you suggest I hold from buying or do stocks for now?
The stock market is no different, to maintain profit, you need to have some in-depth knowledge on the market.
True, I mostly just buy and hold stocks, but my portfolio has been mostly in the red for quite awhile now. Unfortunately to be able to make good gains, you’ll need to be consistent and restructure your portfolio frequently.
In my opinion, it was much easier investing back in the 60s but it’s a lot trickier now, those making consistent profit in these times are professionals reason I’ve been using an advisor for the past 5 years to consistently build my portfolio in preparations for retirement.
my partner’s been considering going the same route, could you share more info please on the advisor that guides you.
Melissa Elise Robinson is the coach that guides me. She’s a verified coach and she helped me see that returns can be made in both bull and bear markets. She covers things like investing, insurance, making sure retirement is well funded and looking at ways to have a volatility buffer for investment risk, lots of things like that.
4:58 in - what's your question lol
All that calculator math was starting to hurt Dave's head. So he had to put a stop to that.
“Whoa whoa whoa, somebody is actually looking at these numbers really closely, better say the rules are flexible!”
I don't think Dave has ever ran the numbers on 15 year mortgages besides "YoU PaY lESs inTeREsT on A 15 YeaR MoRTGAge"
@@abrahamflores2566 But you can invest that difference and make money.
@@jimmymcgill6778 exactly, you can payoff your house faster on a 30 year loan if you invest the difference
@@abrahamflores2566 And have some money left over.
PITI (Principal + Interest + Taxes + Insurance) should be no more than 25% of your take home pay (I would recommend "take home pay" be everything except for your retirement which should be 15% of your gross pay) on a 15 year fixed rate mortgage; Dave says the 25% can be just your gross pay minus just your taxes. Also, don't forget that Dave recommends giving to your religious institution and/or to do charitable giving. He doesn't give a specific number, but he tells people that what he does is that he gives 10% of his after tax income to the church and he also states that he does other giving aside from that. Dave also doesn't insist on at least 20% down on your first home, but he does if you're selling your home and moving into another.
This will be hard for a lot of people in this environment and depending on where you live. Dave will never tell you to deviate from his principles. You could also do it on a 30 year loan and pay it like a 15 or refinance although many people don't have the discipline to do this. In the end, it's all about getting out of debt, staying out of debt, living below your means and saving for retirement while still remembering to give money to your religious institution or some charity if you don't have one.
You have to be intentional with your money, be smart and be patient and maybe learn to compromise on your home/bide your time 🙂
Only problem with trying to pay a 30 year like it’s 15 is that you are stuck with a higher interest rate than had you just gotten a 15 year lol
BREAKING NEWS: Dave Ramsey now suggests up to 29% of your take-home pay for the mortgage.
Breaking news 1997 Dave completely out of touch with normal incomes
This is actually a good Video, A lot of people watching get an accurate idea of what's actually doable.
The Caller should pull the trigger on a $200k house. Your good and the shovel is getting bigger.
The 25% if a general guideline, don't sweat it and get out of renting.
A 7:44 show guest 20 second comment Dave was the star of the show again
Business analyst can't even answer a simple question... 😂
Being a House owner is not cheap~~~ Surprise!!
His wife must love him 🤣
She probably falls asleep every night to him reciting earnings reports verbatim.
Lol he was throwing out hella figures n Dave said hold up stop stop ✋️
He's a business analyst that over analyzed.
I can relate.
I laughed when Dave said, "Don't over-nerd this." Analysis paralysis.
He definitely has the Analyst mindset lol. As an analyst, from now on I’m thinking if I’m over-nerding the analysis lol.
Lol dude showed up with an entire encyclopedia and percentages
Many buy a large house planning for a large family. After one child, they are forced to sell. Also, if you have an adjustable rate mortgage, it will go up until 2024 or more. When you go broke there are sharks in the water. I enjoy seeing young people doing the math.
HA! "Dont over-nerd this". I must use that statement in day to day conversations!
LOL just heard that too
As a mortgage originator this guy made my head spin. It sounds like this guy has no idea what he wants and I would be apprehensive to give him all these options just to have him say hes not interested
Hi Brian. I’m looking to buy a home in the near future. Is the expectation that you have to know what you want already when going to a mortgage originator, or can you meet with them to ask questions?
@@allan2263 yes and no. I like to ask what your goals are to determine what is your best option. Some people want the lowest payment which means a 30 year loan. Some people want to own their home and pay the least in interest and fees which means a 15 year loan. And there's numerous other things that go into a loan. I haven't watched this particular video in a while but it is great to ask questions but I would hate to answer 100 questions just for the borrower to back out
Yep sounds like a business analyst to me
Hope this guy bought that house, because getting a 5% mortgage is impossible now.
Mans was losing me too with all the numbers 🤣🤣🤣
I laughed hard
A mortgage meeting a 5000 monthly income at 30 percent take home is truly non-existent anywhere in the country. I wish they would adjust this based on what actually exists today in 2023 not 1990
A 15 year mortgage is not realistic for most, based on monthly payment amount. Get a 20 or 30 year and look to pay off earlier, by making more payments when you have it. I had a 20 year mortgage……..payed off in 14.
Exactly this is the way. Use a 30 and pay off extra when you can. But give yourself some flexibility. And don't let yourself be priced out, because houses aren't as cheap as where Ramsey lives.
*paid off
Never buy a house in a HOA
Why
You have to wait until 4:55 for him to pop the question.
My head is hurting now!
@@alinatamashevich3354 ужас 😩
@@jordandowland7256 PTL for the "mute" button
Is this guy just trying to pitch "his calculator" to Ramsey Solutions?
This caller is insanely annoying
Business OVER anaylst. Am I right or am I right?
Had to go to the next video....couldn't listen to that over analysis
This caller likes to hear himself talk.
It’s funny how all these people talk about is paying a high payment on a mortgage but they are willing to pay anything for rent
this caller is killing me
Dave's math mortgage formula
2(Annual income) +
down-payment =
What you can afford to buy
The answer to this guys question is move away from a place that you pay over 6k a year in property tax. There are 40 plus states where you can do that.
Like here in California it's pretty good
They are calling a WRONG person
Their plan doesnt work
Really depends on how much u make, after mortgage having like 3k should be fine
For sure 30 years not 15
Oh cry more, my house is 9500 property tax amd my mortgage is like 40% take home
Its new york
Mine in Miami is almost 50% of my monthly take home. These people freak out over nothing.
So basically at a 15-year fixed, I can afford to spend $130k on financing a house...
How does anyone buy a house anymore without already being rich?
You don’t.
Notice how Dave never runs the math on air to tell people their max loan amount. He just says his typical buzz words and mutes the calls before it gets into the details.
You don’t under Dave’s absurd advice unless you live in the sticks
Currently it’s mostly unrealistic for average income earners to be responsible homeowners unless you’re a dual income household without kids. So you either have to become a high income earner or hope for a better opportunity.
You either wait or you move. Don't live in those expensive places.
I wish I could call Dave Ramsey directly, I haven't had a video that speaks about my specific situation and we're so lost on what to do.
Ouch on the property taxes! I thought ours were high in Massachusetts, but they're about half that rate.
NY for ya.
California is less than Texas
"Overnerd" lol!
I loved "don't over need this". Lol
He said, "Don't over nerd this"
Roch cha cha 🤘🤘🤘 I live about an hour south of Rochester. Just bought a house a couple months ago just before the interest rates went up.
Sorry, but it is idiotic. Average price for houses in my area is $350k. Property taxes are 3%.
Means to have 25% rule for 15 years my income should be 12k per month. It makes impossible to buy a house in the nearest future. Household income 114k net is crazy.
Pay off property as fast as you can is also funny. My current mortgage payment for my house 30 mortgage is 2150. From these 2150 just 600 is interest and 500 principal. Rest is escrow that I'll keep anyways after pay off my interest and principal
Dave, don’t over nerd this 😂 it doesn’t take rocket science Matt
25% is extremely unrealistic for the average american unfortunately. At 100k income that is roughly a 250-275k house depending on interest and income tax. Where i live you are lucky to find any house less than 350k. Im not saying his rule is not smart, but i am saying it is unrealistic
worst caller I have ever heard
A starter home in Dallas went from $250k to $350k home prices are insane so what do you do?
That’s an unrealistic guideline for 90% of Americans. If you make 80k a year, a weekly take home pay is around $1,100. Tell me where you can find a house with that mortgage payment on a 15 year fixed rate? It would either have to be a really cheap house, you would have to have a super down payment, or you are making really good money. Dave’s guidelines is for the 10% of Americans who make really good money.
this caller was way over analyzing the math when buying a home, when all he had to do was basic math to figure it out. lol
Was taught that in 1989 home ec high school class...was a good number then and holds true.
Was actually achievable back then for a big chunk of earners though.
Realistically right now only like 10% of couples and 1% of individual earners can afford that.
We just paid off our mortgage. Thank God.
This guy tried flexing online, yet showed his plan is double Dave's plan (30 year vs 15 year mortgage), kept rambling and not answering Dave's questions to the point of pissing him off, and also demonstrated that he does not understand Dave's baby steps (his ridiculous question about retirement at step 3b).
He spoke about calculators and fancy math, and I expected him to say he makes $150k. He just makes shy of $70k...
I really don’t get how this is possible for anybody. The average house about me is around $500,000. Even if I were to get a very conservative two bedroom one bathroom house it would be about $350,000 on a 15 year fixed rate. I would need to take home about eight grand for a month just to qualify for that.
Wow! NY was crazy high property tax! Yikes!
Mostly school taxes. There's a reason the teacher in NY end up millionaires.
Ramsey is out of touch with todays home buying. I live in Pittsburgh where it’s one of the cheapest places to buy. The median household income is 54k and the median house price is ~219k. Do the math with a -15yr mortgage with a 5% rate your looking at 1400 a month payment before cost of anything else after your 20% down if you even have that! Now imagine higher cost places like Tampa Florida etc… that’s just median math talking too. I’m glad I make way higher than that being single but I still rent with roommates.
Everybody gets approved !baby steps… thank you Dr. Leo Marvin thanks for seeing me!!..Bob???😮
I'm young, I live in a very expensive area but want to continue to live here for a decade for higher pay and career experience. Should I just wait til my 30s when we move away to buy? Or is 10 - 12 years too long to sit on the sidelines when it comes to home ownership?
I didn't wait, I bought immediately as soon as I had a down payment. My mortgage is high but my equity has been increasing.
The only people who can afford Ramsey's ratios on mortgages here in British Columbia are already millionaires. Everyone else would need to move
Lol; "don't over-nerd this"
Some places with today’s current interest rate you can’t do even 25-30 percent. I mean you could but it would be pointless because you would either be in the worse neighborhood, or do 100k+in reservations
That boy started Rambling like a mf 😂😂
Whew he sure rambles
this guy is smart he need to make more money
Well that advice would mean I would be able to afford roughly a 130k dollar house. Impossible to find .
Rent, move, or increase ur income. Stop complaining
@@kinghashbrown6951 it must be comfortable having such an infantile and simplistic worldview.
@@AlecArtComics well if you call figuring life out with my new wife as we both go through law school debt free from earned scholarships and saved money infantile and simplistic, guilty as charged. We just found a nice cheap place to live for the time being, and our projected income after law school is very good. Think before you speak. Better yet, don't speak on manners in which you are so woefully uninformed that you sound like a pathetic child. Good day.
Amen
So is the 25% calculated before or after mandatory pension deductions? And is it after retirement? I basically have the same question as this guy and I still don't know 😂
This sounds like a guy who likes to hear himself talk. Good lord, just ask your question.
Most people can’t afford a 15yr mortgage these days, especially if you try to stay in this 25% range. Good luck with that!
"Don't over NERD this" - Dave Ramsey
$175k house in NY, lol good luck.
Bro is a gold medal yapper
Just wonder where in NY can get 176 G house
Love to know where can get a house for 175k in NY
Rochchester
I would love to know where this guy is finding a property in New York for 200k
It would be cool to see Dave Ramsay come out with advice that is actually actionable.
I make 151900/yr at 29 which makes me a top 4% individual earner for my age.
If I wanted a 25% post-tax income mortgage payment on a 15-yr mortgage with 2.25% down (section 184 loan), then my housing budget is around 260k (the avg national housing price is around 420k).
I would need to raise my income to 245k/yr to afford the avg national home price at current interest rates… wtf.
Ramsay should just tell people home ownership is too expensive for most people right now and renting temporarily is fine.
A 30yr 420k mortgage with 2.25% down right now will cost me 3k/yr with taxes/insurance included.
I have a lot of 1bd appts near me renting at $1300-$1500.
I love Ramsey, I’m so glad I found your videos. I was drowning and this man saved me.
I have over 300K in investments not including IRAs. I am over 60 and retired due to disability. Hispanic Spouse is 56 and can't find anyone to hire him full-time with a Master's degree. We owe 206K on house mortgage. My question is, should we pay off the mortgage and get our money out of investments, mostly ETFs with a family member's investment company or buy property to use in case with a house on it and 20 acres of land. We live in DC area, inside the beltway and being in Maryland isn't the best right now. Husband is afraid to buy property in West VA just in case he gets a job in a red state other than West VA. I am seeing us lost money every month for the first time ever and feel it is not wise to keep it there any longer. Please help my family. We are desperate for a solution.
Why is his ethnicity important to mention?
can you shorten that up and ask a question that makes sense?
Assuming you have equity in the house and that prospects aren't good that y'all are going to be able to keep up the mortgage and utilities, why wouldn't you cut the house anchor, it sounds like it's becoming a noose around your neck.... Even if you have to rent a less than ideal apartment til you know where you're going for his job... Just have to be disciplined not to touch the money you get from the sale and keep it for a house
Don't use a family member's investment company. That can cause a lot of problems.
A 200K property??!! Wow, that’s not even enough for the DOWN PAYMENT on a 2 bedroom condo in Vancouver. Where does this guy live?! Should probably move there.
Have at least 48 states to choose from.
Let's see, 25% take home pay per month to buy the cheapest piece of crap on Long Island you can find, you'd have to take home about $16,000 per month..... :/ And that's based on a 30 year mortgage. 15 year you'd need about $22,000 per month take home.
She uses a pen right off Dave uses his genius photographic memory
She picked up pen then got confused with so much info didn’t write nothing just holding the pen as a security blanket
This guy should detail cars
lol, truth
I'm 21 about to buy my first home. My payments are 1500 and that including HOI and I make roughly 4800 monthly. I hope I didn't make a mistake :/. House was 210k but beautiful and seemed like a good deal.
Congratulations and good luck!
31% home
15% retirement
25% savings
Totals 71%
Leaves you 29% to live off. Can you live off 29% of your income (groceries, life insurance, medical insurance, cable/phone/internet, restaurants)? If you can, you're fine.
You live in Burundi? As a Floridian a 210k house sounds wild to me. Lol Here you gotta go for 500k+ for something mildly decent. I split mortgage with my partner. I pay 1.8k and make 4k. Sounds like you are fine.