Thinking About Buying A Home In This Crazy Market? | Ep. 12 | The Best of The Ramsey Show
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- Опубликовано: 28 сен 2024
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I appreciate your approach to teaching.. To my understanding this just proves how much we need an edge as investors because playing the market like everyone else just isn’t good enough, we just need to hold onto our hopes and wait to see how things turn out because market movements are almost always unpredictable. In my portfolio, I'm noticing more red than green.
As with an my big financial decision, it’s important to keep your guard’s up for economic risks. However, smart planning, time management and seeking advise from a financial adviser can help keep you and your money safe
@@jose2212- yes i agree and right now the markets are going berserk right now. This is the best time to watch them, get to know them better, and strike when the opportunity presents itself. I learned that from my mentor, ‘’’Mariam Sandra Milner'' she's seen dozens of market cycles over the past few decades, and she has a feel for how they move, why they move, and what comes next.
@@EricZachary-om7hf How can i reach her, because I’m seeking for a more effective investment approach on my saving.
@@Sopknapp Mariam Sandra Milner maintains an online presence. just make a simple search for her name online.
@@EricZachary-om7hf She appears to be well-educated and well-read. I ran a Google search on her name and came across her website; thank you for sharing..This information is really helpful.
Date the rate, marry the principle. You can ALWAYS refi if and when rates drop again. You cannot change the purchase cost of your house. Take the 30yr fix, have a reduced monthly payment, pay extra per month when you can afford it and when rates drop, refi to a 15yr fix. It's not this complicated.
I don't know if you can refinance when your house is underwater because you won't have the 20% equity I guess if you were to put a bunch more cash down you could
What percentage of the house cost should your down payment be?
Sounds like a cope
You cannot refi if you are underwater.
@@SmashBrosBrawl his thought process is that once the rates go down his house will go up. Which.... won't work because rates won't go south of 4.5% for the next 10 years.
Housing prices and interest rates make it much more difficult to buy a house especially on a 15 year fixed interest. I’d be lucky to find a box where I live in Illinois for anything less than $250K (living in a “ok” neighborhood).
With todays rates the mortgage payment would be $1,900 which means I would need to make $7600 per month after taxes with 20% down using Dave’s advice of a mortgage payment no more that 25% of your after tax take home pay.
250K? I wish. Try 750k.
I did everything "wrong", borrowed from 401k to get a 5 bedroom house in 2014... Well now I paid that back and my mortgage is $1700, I live in California....do what you gotta do as long as you have a plan b
Sounds like you need to move to a different town bud, or take a year to save. There's no shame in waiting a year to build up that down payment.
In DC even a"Not" so ok neighborhoods, house minimum are starting @$530k plus.Dc don't have 400k houses anymore unless is 1bedroom condo🤦🤦🤦
@@zunaiandre2341 yeah decent houses over here are usually $300K-400K. Your income really needs to be $150k+ to afford these houses comfortably
Btw, 10k bump in building a home is nothing. You need a 10-20% budget anyway. He’s just not ready to do what he’s doing.
Exactly my thoughts, and didn't he then say it was like 10k on a 300k house? Dude wasn't at all ready
Classic example of homeowners not understanding the construction process. Escalation should be expected, and allowances set aside.
I got large bonuses in my job for 3 years and paid outright 3 rental homes in Tulsa OK. Bonuses have slowed down but no problem, my base is great. Those homes are now worth double what I bought them for just 4 years later!
What if you get a 30 year and just pay more when you can?
Then, if you messed up, you didn't lose your house.
YES!
A lot can happen in 30 years (divorce, job loss, medical issues). The safest bet is 15 year with 20% down. In 10 years you could end up being foreclosed in with very little principal paid off due to the amortization schedule.
@@jsteel_You can get foreclosed on a 15 year too.
Your word is a lamp to guide my feet and a light for my path praise God praying for everyone everyday God bless you all
Look up Treynor ratio for the Beta conversation if you want to see the math behind it. The theory Ramsey is explaining is that paying down mortgage would result in a higher Treynor ratio by reducing debt and interest while de-risking (lower Beta) versus putting money in a higher expected return higher risk ETF/mutual fund.
Where I live in North Denver, CO, it’s not uncommon for folks to be paying $5K/month on their housing payment with rates in the high 6s low 7s. There is no middle class home worth $5K/month. I understand some people are more well off than others, but that’s $60K/year just in housing!
Save up 20% down and pay only 25% of your take home pay, you need to have at least $15000 per month to buy a decent home in a somewhat safe neighborhood. This is what first time homebuyers facing in NY, CA, WA, NJ etc….
The physical world doesn't care about your morals. Always make the smart decision when it comes to big decisions like this. Live and learn
I bought my first home with a 30-year mortgage and paid it off in 10 years. A 15-year mortgage makes sense if you're not disciplined.
Agree.
Most people not disciplined, they need to pay gym membership to exercise their own bodies.
Good for you!
Nobody is thinking high property taxes and high insurance on big houses
Combine costing you 10k to 18k depending where u want to live a year
That's how u lose your home
Yes! I saw so many houses when house shopping I loved and found out their taxes were ridiculous. It's honestly, the American dream that has everyone blinded by the facts.
Find better insurance lol😅
If you are going to be in the house for a while. Why are you so concerned about have to pay 10k, 20k, 30k extra for materials?
A lot of people stretch out their initial budget to the max in the first place. They don't accout for these things. It kills the deal.
"what is your take home pay" is not a complicated question. Why do people have trouble blurting out the number?
Embarrassment
Probably been lying to others and can’t be honest about it
Ego
Yeah but it's all pretty anonymous on the basis of first name only
a lot of people dont really know their take home pay.
Thanks Dave! You are the only one I wish to listen.
7.5 % 30-year fixed no thank you - wait for the houses to correct another -5/10%
We bought higher many years ago, can always refinance if you can afford it.
Hopefully that happens
You cannot refinance unless you have enough equity. People buying now are going upside down.
@@0529mpb bingo. in Austin, Phoenix, and Boise ....people who put 20% down could be underwater by end of year
@@deb9806 you can’t refinance if rates don’t go down and it will still cost many thousands to do.
Suzanne! What the heck is your take-home pay!!!!!!!!!!!
I make almost twice as much as Suzanne with one less child and I would be scared to buy at her original budget. Wild.
$2500 on $16k take home is a laugh but I’m also 90% sure the $100k is her gross and she has no idea what the question meant.
She is probably the one who convinced her husband who is working multiple jobs to go more expensive.
Same. I thought the exact same thing with a similar income as yours.
How did she come up with $2500 a month on a 500k home?? The math does not add up especially if she is not putting any money down! I don't even know how they got approved for such a high mortage loan with that low of an income.
@@jose09841
Maybe an interest only loan? 🤔
Insurance ,taxes, adding in your mortgage with pmi payment, the house will own you.
20% or more down... on a 15 year loan.... with the current mortgage rates... and inflated home prices.... SIGN ME UP!! haha this is so so so difficult to do more many many many people currently.
People need to cut the whole morality schtick, “omg I’m breaking a contract” 🙄 Give me a break, contracts get broken all the time for various reasons, that’s business. You don’t buy this house, someone else will. The deal no longer works for you at the new prices so walk away, it’s simple, stop acting like you’ve signed your name in blood😐😆
Wrong, no one is buying houses right now. Mortgage applications at multidecade lows
Imagine if the big banks had that attitude. "Nevermind, you can't have this house out of thirty years of payments..."
@@SmashBrosBrawl “no one”?
@@eurekahope5310 and that’s why their are lawyers and the court system. Let’s not pretend like this was some hard set in stone agreement because it’s not. In this case this person can walk away and both parties wouldn’t suffer any hardship if they did.
K
I feel like the real issue is being ignored. CALMING housing prices don’t change the fact that housing is over twice as expensive as what it was a few years ago, and wages have not increased. CALMING prices doesn’t help anyone
There’s no PMI on va loans.
Exactly lol😅
In the 2023 materials prices dropped like a rock
Why are people so exited about a house right now ? This is the worst time to buy a home …. Im sitting on the side lines eating my popcorn waiting for all these foreclosures to start because people cant afford them!!!! While ranking my down payment 💴
Life changes do not always mean one can sit around and wait; kids, parents moving back in, moving, etc
Well if you can sit on the sideline that’s great. But you can just hold off living life like marriage and having children. We really lucked out. Got married in 2015, started our family immediately and bought a house in 2016. But if we had to do it now it would’ve been really difficult financially.
In my area, foreclosures often are paid for without any financing or they're not maintained well and the reno costs are too high to be worth the return. There's also the issue of home owners not wanting to move because of their low rates while gen z and millenials are both competing over the small amount of inventory.
I bough and sold my house back in 2017, it was a great buy right now in my neighborhood house are insane high $640k for a house down the street from mine !! I owe 250k on mine right now crazy equity !!!!!!!!! Looking for a rental but not right now !!! I can wait !!!! Patience is virtual
Foreclosure are going to be high as well. The bank knows the value heck they own it smh.
450k for a house in Spokane is trash? …WOW !!!
I’m blessed then , I live in Columbus Ohio ( the capital) a booming city and 450k gets you in the any of the prestigious neighborhoods POWELL, NEW ALBANY, DUBLIN, BEXLEY etc.
It’s Ohio. Lol. Grey Ohio. So yeah, that’s why it’s affordable. It’s Ohio.
VA LOAN DOESNT HAVE A PMI
I also how informative you’re
You have a great podcast
The single mom should just go rent a tiny house at a community somewhere and cut down her expenses by double, at least.
I would not buy now at the top of the bubble. let the prices drop.
11:03 one year ago, for 550k home with no down, they were paying 2500/month??
Why has You Tube stopped dating all videos except brand new ones? Bad. Lots of them NEED a date on them, like this one.
There would be NO point in dating this one as it's a collection of calls spread over the course of more than a year.
This is a highlight video. They can't date it
Hey Delony and George, I follow you guys and all but you were incorrect. You do not pay PMI on a VA loan.
People just live to parrot Dave. Even when he is wrong.
Don't
He's not going to care about 10k 10 years from now
10k invested properly is 20k minimum in 10 years.
Yes. It was a tiny increase in the price, especially if you consider the jump in payments for existing homes with interest rates skyrocketing.
Right - this guy has a poor man’s mindset
No chance with 100k at a 6.5 interest rate she qualifies for a 15 year mortgage at 550k
Listening to Susanne was painful. She is in denial and is a housewife in the making.
Katelyn, maybe take a look at the West side of the metro… cheaper than the East side. Surprise, for example, is cheaper and new apartment complexes are going up.
You don’t know where they work and it cost even more to commute long distance to work school etc. don’t forget crime as well
How in the world… a fourth of your income on a 15year fixed. The math won’t math even if you’re making 100K smh
In South Florida prices haven’t dropped yet
$550 is expensive.
Lol. Here in Canada $1.3m is common price for semi detached houses.
First of all USD to CAD is 1.31 - so $550 is more like $720. Secondly, 1.3m CAD is more like $990usd. Thirdly it greatly depends on area. Besides Vancouver, BC and Toronto, ON, pretty much the rest of Canada is 30-50% more affordable. For example we live in Elora, ON - was in top 10 most expensive places in Canada, and houses here are $1m to 1.2m on average. Semi detached would be a lot less. In other places its noticeably less.
I am wondering if this was a good idea , just purchased a house in NY for 535K , which is average , 10% down , 7.347% interest rate 30yr conventional with an annual income of 220k
Wish they'd date this recaps. Lumber is almost 2018 prices now.
It's pretty easy to see a video's upload date...
@@amireallythatgrumpy6508: he said date the recaps. Not the whole video
@@kimmyb8276 It's pretty easy to see the date that ANY video was uploaded to RUclips, fool.
This guy missed the window because Build Back Better.... 🤣🤣🤣🤣🤣🤣🤣 FJB!!!!!!!!!
The next deal, you're gonna be in the same boat! That's too bad of a difference in price.
Lumber is dirt cheap now
There is no PMI on a VA mortgage.
She said 2500 monthly mortgage....how on 555000? She is mistaken
JESUS CHRIST died for our Sins According to the scriptures and that he was buried and that he rose again the third day praying for everyone everyday God bless you all
what does this have to do with the present conversation?
Amen spread the gospel!!!
Never Pay Over $250k up to $2.5M depending on gov & private sector businesses for New Construction Home Loan
Why?
I just paid my little house off and now my wife want to add on or get a newer house . I have no clue what to do . I’m 40 any advice.
I've decided not to play. There are too many thieves involved with home purchasing.
When do you go on live so I can make you a question?
Nothing can justify a bad financial decision like a tanklike suv or home quite like having a kid.
Just the title says it all. Dave said this is the perfect time to buy and sell. That's hopefully what we hear.
He's already said he didn't think it would correct greatly but if you can't afford it, you can't afford it.
When debt free and paying mostly cash anytime can be the perfect time.
Always opportunities.
@@blackworldtraveler3711 I have all that and worried that I can’t downsize to anything again if prices don’t calm down. I just don’t have enough or make enough to ever own anything at the price my house is going for now. Also smaller townhouses and condos are just as expensive now and so i wouldn’t really be downsizing at all.
@@karmasutra4774
Keep saving/investing and be patient.
Never thought I would be buying a$560k beach home for $240k in 2008.
Always opportunities.
No. He said three months ago was the perfect time to buy and sell.
Cash is king
Subject to is the way to go
Why not pay off mortgage ...then at least u have a roof over your head
If you had the amount to pay a house cash. It would be better to use the Va loan and open a high yield cd 😅😅
Maybe read the contract next time. Contractor did nothing wrong.
Kaitlyn could consider finally dating that guy in her friend zone who would probably marry her, be a good stepdad, provide protection, and probably more than double her income.
I couldn't do it either. Bible says count ur costs first
Thanks for the shows. I don't like David exaggerated sounds. I found it annoying. I don't know how other people feel of it. It's little too much for me. Just voice my opinion. FYI.
Ramsey is rarely right.
Sure using a looong time to get to the 500k house question.
I want to buy a 3rd house but I’m priced out with the rates ! 😢 fine I just bought a brand new corvette with every option , yolo
Congrats on the new Vette....C8? I have a supercharged C5 and it's a lot of fun, but would love a mid-engine car.
What happens when the United States can’t pay the national debt??
Without a documented baseline for product price increases....sounds to me the contractor could go out of control.
Idk why old people get into loan like that your be dead before you pay off
You can die at any moment. What make you think you know the future. Also that home can be passed down or sold to get your money hint. It’s not a depreciation assessment this decade so far
Imagine how much that crypto is worth today
Okay but why do they have to berate people over and over “you’re broke” . You can speak kinder. They are coming to you for advise humbly and you berate. I don’t disagree with the information shared but the way it is is very unkind
Grow up
STOP SCREAMING!
Why tf did she sound like an old retired school teacher
Omg Dave you too broke to buy this house. You are harsh😂
Why is that guy on the right at 9:19 even on the show? I find him very arrogant & annoying. And he talks down people. In my eye, he's a liability to the show. But others might like him. Idk. I like the one on the left.
Yeah, no lady
I could only afford a 108k house. Are there any out there?
With todays ratss that 550k house mortgage is up $1100 💀
Hey,Its Derin from India.
Planning for new home in india how could i get your advice on that.
He doesn't know about that, it's not his pond. Save money
Dave doesn’t like Veterans. And 30 year mortgage is better because the payments are low or with zero down. It’s affordable to Veterans and why does Dave have to scream like a banshee?
Buying a house with zero down is one of the dumbest things a human can do.
@@amireallythatgrumpy6508 except when my payment is $500 less than my rent.
That's why you don't build home. You buy already built one.
It’s going to cost thousands for repairs. Example roof ain’t cheap. HVAC siding structural repairs
Clown 🤡 World advice.
World advice? Seems you are the clown.
I'm not a fan of a 15 year loan. If you have a 30 year loan you have the flexibility of paying a lower payment if you were ever to lose your job. You can always pay extra during good times.
the rates are less for 15 year. also you run the possibility of not keeping up ur emergency fund when you know you can make the lower (30 year) payment. do the 15 year for lowest rate and keep your emerg fund at a proper amount to cover losing job.
I am a fan of 15 y
My sister-in-law and her husband had a 30 year loan but paid the loan off in 19 years. The 30 year gave them a lot of flexibility vs the 15 year loan. They were still able to pay it off much earlier.
I agree. Pay your 30 off using a 15 year amortization...if hard times temporarily rear their head, save a few hundred dollars a month paying it down as a 30.
I agree, I have 30 yr mortgage but I pay 2-3 extra payments a year. It gives me flexibility.
In SoCal people are absolutely desperate to buy
Even the crappiest houses are selling for ridiculous prices
Buyers need to calm down!
I feel like they always forget that the alternative to paying for a mortgage is paying for rent which, where I am, is often even more expensive, goes up every year, but somehow is a smarter play cause it avoids paying PMI. Doesn't make much sense unless maybe you're planning to move or get fired.
😂 👍
Rent can be more expensive than the mortgage payment.
But just the mortgage payment. Doesn’t count property tax, insurance, maintenance, HOA fees, appliances, etc.
You have no flexibility to leave either.
I don’t like the rent prices either. But the alternative at this point in time is less appealing.
@@ThorMaximuscorrection: Rent is ALWAYS higher than the mortgage. Otherwise nobody would be renting out their property.
Listening to that Suzanne call was painful
I see property tax as a form of debt so you're never truly free and clear. If you don't pay your taxes your house will be taken away from you
Your house or your car or your boat but it is still better to have those things paid off!
Jackson is right, Dave is wrong.
Dave always have to make strawman arguments. Investing instead of paying off your house, is not borrowing on your house.
Pretty sure they are BOTH wrong.
There’s no PMI on VA loans. They’re backed by the government if the borrower defaults.
I'm totally making 15:49 my new ringtone.
🤣🤣🤣
Send me the clip
Question: Should I be saving WHILE paying off debt? Or should I pay off my debt first then start saving and investing?
You should first save an emergency fund up to 1000 dollars, then pay off debt, then start building the emergency fund to 3-6 months expenses, then increase retirement to 15 percent
I followed this model too much. Made myself debt free quickly, BUT, I missed opportunity to put money into 401k and/or Roth IRA.
In hindsight, since I can’t go back in time to add to those buckets, I would have delayed paying debt off and get money into those buckets.
I paid off my debts and built up over $40k into bank account, which looked great, but I could have easily added $10000 to 401k & $5000 to Roth.
I did the numbers, and in the long run, the interest on the debt was inconsequential compared to the missed opportunity cost of the investments growth in next 10 years.
They say you should not put money into your retirement accounts because it will make you angry that you are missing out on saving for retirement. That means you will pay off debt sooner!
The first guy is trying to get Dave to convince himself that the contractor guy is a crook. It’s like he’s wanting him to be.
minute 47: Roth IRA's don't have penalties for house purchase withdrawals.
You can withdraw up to 10k of Roth IRA towards a 1st time house purchase or new build and not get the 10% early withdrawal penalty. Although, earnings may still be subject to income tax. Contributions (not earnings) can be withdrawn at any age w/o penalty or taxes.
Lumber costs are cheaper now than they were in 2019, was that first an old video? Drywall and plywood are still more expensive but all framing wood is cheaper by far.
The inventory itself isn’t great (at least in the Philly area). Along with the high interest rates, It’s also the cost of renovating and/or repairs especially if you want more than half an acre.
I felt this. I've just been keeping my eye on the inventory and it's very discouraging.
Rachel is so out of touch. She thinks moving “20 minutes away” is going to help this ladies issue of paying 60% of rent 🤦🏻♂️
I couldn’t agree more. I heard say sharing passwords is cringe and tacky, but stealing medium sized hotel towels and canceling the subscribe and saves immediately after saving, those aren’t tacky and they are ok. Her advice is in one ear and right out there other anymore.
And Stephanie doesn’t have a clue what closing cost might be on a $750,000 closing. She won’t know that figure until three days before the closing. It could be $50,000 w legal fees, property taxes, etc.
I need to get a house so I can store my old cars and run out in the garage in my underwear and work on them if I'd like to.
That's what I'm saying my man lol
Re Brian: this won’t typically happen on a previously owned home. All those unknown price increases won’t happen.