To Ben and Cameron, regarding Dave Ramsey, neither he nor his show even remotely approaches the true quality and education that both of you provide. For me and all of the listeners/watchers who await your show each week, we thank you very very much! 👍👍👍
Keep focusing on the high quality content rather than "sleek" production. Your podcast is one of the few things we put on speaker and play throughout the house because everyone loves listening to your podcast
It really is amazing that you only have 21k subscribers, given that I see links to the content sprinkled all over Reddit. You guys continue to put out great content!
44:00 When you sell a home in the US, you generally use the proceeds to pay off your mortgage loan even if you're buying a new home. You can't keep your old mortgage if you like it, because you no longer own the collateral pledged to that loan. This is why the US housing market has frozen up since rates were hiked: people don't want to give up their sweet 2.5-3% rates locked in for 15-30 years, so they won't sell and move unless they have a very good reason. Selling your home *can* be tax-free in the US: there is a $250K exemption for single people and $500K exemption for married people. If your capital gain exceeds $250K/$500K, you pay tax on the excess.
Honestly the U.S. housing market is such an anomaly due to government subsidies and generous financial products and tax treatment that it’s funny so much research is done here. Pretty much the only risk in buying a home with a long fixed mortgage is that you lose your job. It’s just not comparable to what people face everywhere else.
In my experience it's uncommon to have a payoff penalty for a mortgage in the US. It's common to buy contingent on your house selling. Then the old mortgage is paid off, with the remaining rolling into the new loan.
Hi Ben and Cameron, Long time listener of the RR podcast. Just want to comment that this podcast has been one of my favorite ones yet! I am a recent college grad beginning my career in the finance industry, and you guys have been absolutely critical to my understanding of the financial world and the products and services that surround it. Not only do I believe this information helps strengthen the knowledge of products I will come to represent, but I also found this video incredibly valuable to my own personal financial planning. Thanks for constantly making such great content!
Most US residential mortgages do not have prepayment penalties. The Dodd-Frank Act of 2010 made such penalties illegal. Also, US mortgages use the mortgaged property as collateral. Thus, when someone wants to move, they sell the home and use part of the proceeds, minus realtor commissions and other selling costs, to pay off the mortgage early. The remaining proceeds are used as the down payment on the new home, on a new 10, 15, 20 or 30 year term. The new mortgage then uses the new home as collateral. Since most mortgages do not have prepayment penalties, when rates decline, homeowners will often refinance their current home at the new lower rate. But the decision to refinance has to take into account both the drop in rate as well as the closing costs of the new mortgage, and thus the break-even period.
I listen or watch all your episodes. I especially enjoy the episodes that relate to improving quality of life and basic finance such as this episode on debt. I think that topics that are more complex and dive deeper into the content fit better on the RR Community site. Thank you very much for producing this content.
Maybe not the best video to drop this comment: Your niche with the academic angle makes your show much more interesting to me than Ramsey show and lookalikes. Sometimes you invite non-academic book writers who can offer an interesting investment angle. That's ok. Would like to see Marc Faber, Plan B, Ray D'Alio!;). And more about actual portfolio construction at DFA; i.e. How they differ and tilt from market cap weights. We know they do, but not how. How do they implement momentum next to value and size tilts etc? DFA daily rebalancing versus costs.
Hi Ben, I am DK from Australia and I am long term listener of your videos and rational reminder podcast. I am also part of rational reminder community. I have recently spotted your comment on line of credit. As this product is not that famous or well known in australia, can you please elaborate in details how do you use it as proxy of checking account in your one of upcoming podcast? Really appreciate your content and financial wisdom.
24:00 now that you say that.. its kinda true. i owe 50k for my car and the debt did not bother me once. on the other hand my student loan debt where i pay 0 interest (german, who got a loan from luxenburg) bothers me every month and i considered paying this one first, which is obviously irrational but plays in the idea of: paying the small ones first. overall my debt does not bother me, because i can pay the interest rate from my dividends, which is calming, altough mental accounting only
You've talking about the news about buy now pay later. Dude in Brazil it's been forever like this. Credit cards offers 10, 12 split payments sometimes going far up to 24. Welcome to Brazil lol
The concept of consumption smoothing is really weird to me, I get the premise but if I'm a young person with little networth, my costs of borrowing are significantly higher than a middle aged person applying for a mortgage.
Can someone's please tell me the episode where they covered borrowing to invest. Love this new series! Also would be nice if you kept it too specific to Canada. Unfortunately most of the content out there is US centric
To Ben and Cameron, regarding Dave Ramsey, neither he nor his show even remotely approaches the true quality and education that both of you provide. For me and all of the listeners/watchers who await your show each week, we thank you very very much! 👍👍👍
Keep focusing on the high quality content rather than "sleek" production. Your podcast is one of the few things we put on speaker and play throughout the house because everyone loves listening to your podcast
Content is king yo! 👑
It really is amazing that you only have 21k subscribers, given that I see links to the content sprinkled all over Reddit. You guys continue to put out great content!
Think it’s because their program is in long form in a society can only hold attention for 20 seconds, at least most of us. Very sad fact.
44:00 When you sell a home in the US, you generally use the proceeds to pay off your mortgage loan even if you're buying a new home. You can't keep your old mortgage if you like it, because you no longer own the collateral pledged to that loan.
This is why the US housing market has frozen up since rates were hiked: people don't want to give up their sweet 2.5-3% rates locked in for 15-30 years, so they won't sell and move unless they have a very good reason.
Selling your home *can* be tax-free in the US: there is a $250K exemption for single people and $500K exemption for married people. If your capital gain exceeds $250K/$500K, you pay tax on the excess.
thanks for the information, i live in germany and i woundert about the freezing housing market.
makes perfect sense
Honestly the U.S. housing market is such an anomaly due to government subsidies and generous financial products and tax treatment that it’s funny so much research is done here. Pretty much the only risk in buying a home with a long fixed mortgage is that you lose your job. It’s just not comparable to what people face everywhere else.
In my experience it's uncommon to have a payoff penalty for a mortgage in the US. It's common to buy contingent on your house selling. Then the old mortgage is paid off, with the remaining rolling into the new loan.
Hi Ben and Cameron,
Long time listener of the RR podcast. Just want to comment that this podcast has been one of my favorite ones yet!
I am a recent college grad beginning my career in the finance industry, and you guys have been absolutely critical to my understanding of the financial world and the products and services that surround it. Not only do I believe this information helps strengthen the knowledge of products I will come to represent, but I also found this video incredibly valuable to my own personal financial planning.
Thanks for constantly making such great content!
Always love the new episodes. Best podcast out there, truly so influential on my financial life.
Most US residential mortgages do not have prepayment penalties. The Dodd-Frank Act of 2010 made such penalties illegal. Also, US mortgages use the mortgaged property as collateral. Thus, when someone wants to move, they sell the home and use part of the proceeds, minus realtor commissions and other selling costs, to pay off the mortgage early. The remaining proceeds are used as the down payment on the new home, on a new 10, 15, 20 or 30 year term. The new mortgage then uses the new home as collateral.
Since most mortgages do not have prepayment penalties, when rates decline, homeowners will often refinance their current home at the new lower rate. But the decision to refinance has to take into account both the drop in rate as well as the closing costs of the new mortgage, and thus the break-even period.
I listen or watch all your episodes. I especially enjoy the episodes that relate to improving quality of life and basic finance such as this episode on debt. I think that topics that are more complex and dive deeper into the content fit better on the RR Community site. Thank you very much for producing this content.
Maybe not the best video to drop this comment: Your niche with the academic angle makes your show much more interesting to me than Ramsey show and lookalikes. Sometimes you invite non-academic book writers who can offer an interesting investment angle. That's ok. Would like to see Marc Faber, Plan B, Ray D'Alio!;). And more about actual portfolio construction at DFA; i.e. How they differ and tilt from market cap weights. We know they do, but not how. How do they implement momentum next to value and size tilts etc? DFA daily rebalancing versus costs.
Hi Ben,
I am DK from Australia and I am long term listener of your videos and rational reminder podcast. I am also part of rational reminder community.
I have recently spotted your comment on line of credit. As this product is not that famous or well known in australia, can you please elaborate in details how do you use it as proxy of checking account in your one of upcoming podcast?
Really appreciate your content and financial wisdom.
24:00 now that you say that.. its kinda true.
i owe 50k for my car and the debt did not bother me once.
on the other hand my student loan debt where i pay 0 interest (german, who got a loan from luxenburg) bothers me every month and i considered paying this one first, which is obviously irrational but plays in the idea of: paying the small ones first.
overall my debt does not bother me, because i can pay the interest rate from my dividends, which is calming, altough mental accounting only
fwiw..., love you guys; like Dave. Please, keep up the fantastic work!
You've talking about the news about buy now pay later. Dude in Brazil it's been forever like this. Credit cards offers 10, 12 split payments sometimes going far up to 24. Welcome to Brazil lol
The concept of consumption smoothing is really weird to me, I get the premise but if I'm a young person with little networth, my costs of borrowing are significantly higher than a middle aged person applying for a mortgage.
As a society, we need to improve our math skill and logical thinking.
Can someone's please tell me the episode where they covered borrowing to invest. Love this new series! Also would be nice if you kept it too specific to Canada. Unfortunately most of the content out there is US centric
Ben did a video on leveraged investing, using both leveraged funds and borrowing to invest so you seen that?