How Much Of A Mortgage Payment Can We Afford?

[@sasasavage5047]

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.

[@zainafyl]

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

[@2wheeldom11]

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 .

[@AS-ng5pi]

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.

[@kobefurness4249]

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

[@sanitary103]

That’s what we’re doing. I’m ultra disciplined though.

[@AnnaOllsson]

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.

[@HildaBennet]

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.

[@FinnBraylon]

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.

[@bartlyAD]

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.

[@FinnBraylon]

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.

[@bartlyAD]

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.

[@Tehui1974]

"stop, stop, stop....what's your question?" - 🤣

[@hatwomantotherescue9564]

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.

[@magna428]

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.

[@blackworldtraveler3711]

@@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.

[@WatchMeLearnIt]

@@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.

[@chrisphilips2768]

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.

[@blackworldtraveler3711]

@@austingotwalt I paid off my 30yr in nine years. Never concerned me what others did with their mortgage at all.

[@gibblespascack1418]

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.

[@iknown0thing]

Buying cash you mean?

[@gibblespascack1418]

@@iknown0thing no it means that we purchased the house with a mortgage based on one income.

[@mooneyes2833]

That's what my mother told me, now our mortgage can be paid by one income. Glad i listened to some of her advice.

[@carojames6776]

You hold on TIGHt to that house.

[@gibblespascack1418]

@@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.

[@BarbaraMarks7s]

Investments are the roots of financial security; the deeper they grow, the stronger your future will be."

[@MargaretOlivia2u]

The deeper your investment roots, the stronger your financial security will be in the future.

[@EmilyVanessa5m]

Exactly! With my adviser, I’ve cultivated deep investment roots, strengthening my financial security for the future.

[@ChristopherJeffreynx8]

I would love an introduction to an adviser who can help me strengthen my financial roots.

[@EmilyVanessa5m]

My CFA NICOLE ANASTASIA PLUMLEE a renowned figure in her line of work. I recommend researching her credentials further.

[@ChristopherJeffreynx8]

Thank you for this amazing tip. I just looked the name up and wrote her.

[@Eric-kz9bk]

“Don’t over NERD this” 🤣🤣

[@yaboyyamz]

“I couldn’t do it, it was 25.5% 🤓🤓🤓” lol

[@anthonykence9954]

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.

[@crystalwilson2755]

Buy less house

[@panditakerr4359]

Consider yourselves lucky in the US. Here in Australia you’d be extremely lucky to get any house under 500-700k

[@BengalTiger47]

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.

[@jpii8468]

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.

[@unfairsanic5089]

Lolz true. People are over analyzing things that they dont get into the point of the problem and solve it

[@abrahamflores2566]

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

[@jimmymcgill6778]

@@abrahamflores2566 Yep.

[@MattPryze]

@@abrahamflores2566 Yeah

[@jpii8468]

@@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).

[@jordanporter4518]

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.

[@floresnashvilledrummer]

It also means to keep savings towards a down payment in order to have a mortgage that low.

[@TedFarabee]

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?

[@kbanghart]

@@TedFarabee yeah no, not the same argument.

[@cynthiaclark4990]

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.

[@kbanghart]

@@cynthiaclark4990 I only had a 3% down payment

[@haywood4299]

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.

[@MS-ey3lb]

😆 dude come on. I mean...he has his own KZbin channel...and is rich....I think I'll listen to this guy

[@TheMopar97]

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

[@kbanghart]

@@TheMopar97 sounds like it was more her parents fault than her fault

[@kbanghart]

@@MS-ey3lb so you listen to anyone who is rich and has a KZbin channel?

[@MS-ey3lb]

@@kbanghart of course not. If you know anything about Dave Ramsey..then you know it's more than just a rich guy with a KZbin channel

[@TheGomez1105]

I’m surprised Dave let him go on that long.

[@MsMockingbird06]

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.

[@aj9586]

$500 a month for JUST property taxes…..I’d be moving yesterday

[@slhines7]

Imagine the insurance costs too!

[@TheTurdballs420]

If you think that’s a lot for property taxes don’t ever move to Texas 😂

[@danielschmidt4141]

@@TheTurdballs420 No individual state income tax though so its not too bad.

[@TheTurdballs420]

@@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

[@victors16811]

You need to see PT here in NJ

[@nic_ccc3366]

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.

[@kbanghart]

My existing situation is I'm paying 40% towards my mortgage 😳

[@nic_ccc3366]

@@kbanghart How is that going for you? I hope you're managing OK.

[@juditharsenault2131]

Rents around here (if you can find something to rent) are more than my mortgage/house insurance/ taxes.

[@stlbigbad23]

Or get a smaller house.

[@Whatorwellsaid21]

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.

[@ILENEmusic]

4:49 😅 I SCREAMED LOL the way this man went on and on

[@jenniferspisak]

😂 when Dave cut him off to ask what was the question. I am getting a t-shirt that says "don't overnerd this"

[@travlepreneur]

That was funny

[@eljavio10]

The guy trying to sound smart and Dave telling him to shut up and go to the point it’s shuts priceless!

[@charliep5139]

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 🙂

[@kylegross1081]

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

[@ds3602]

Dave getting more lenient on his unrealistic rules

[@MS-ey3lb]

There not rules you can whatever you want with your money

[@donnyj9487]

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.

[@jordanbertagnolli7388]

Yeah he has been a little big for his britches for a long time.

[@AaBbCcDdEeF]

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.

[@dr_pinna543]

Nah, I enjoy unfiltered Dave. People are too soft. He's like the relative that slaps sense into you so you get it.

[@dr_pinna543]

This clip could have been half the length. Dude was giving TMI.

[@dadbodkiller3174]

Dave has a particular southern hick high vernacular that many people are not familiar with. It’s a thing.

[@MizThe]

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?

[@Williamjame444]

The stock market is no different, to maintain profit, you need to have some in-depth knowledge on the market.

[@vivianlucy141]

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.

[@jackwillison177]

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.

[@Markscott412]

my partner’s been considering going the same route, could you share more info please on the advisor that guides you.

[@jackwillison177]

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.

[@AC-mb2kp]

Dave is gonna say. 20% down on a 15 year mortgage. Says it every video

[@Royalewithcheesee]

Imposible in California and I make 100k in Northern California not the Bay Area.

[@abrahamflores2566]

20% down is useless advice when 95% of the population needs a six figure downpayment to make the 15 year mortgage work.

[@dontworry1568]

@@Royalewithcheesee move out of the komi state then.

[@flea4061]

20% down for 15 is a lot different on 300k then on 850k.

[@hownowvihao]

he doesn't usually bring up 20% down. only 25% of take home on a 15-year mortgage.

[@MattPryze]

BREAKING NEWS: Dave Ramsey now suggests up to 29% of your take-home pay for the mortgage.

[@sarahconner9433]

Breaking news 1997 Dave completely out of touch with normal incomes

[@BIG_C_2137]

Yep sounds like a business analyst to me

[@weinowei143]

Being a House owner is not cheap~~~ Surprise!!

[@nickgarcia4988]

This caller is insanely annoying

[@arizonalifestylechannel2186]

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.

[@tomdrummy4984]

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.

[@Bertuzz84]

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.

[@annehajdu8654]

*paid off

[@t3morga]

Had to go to the next video....couldn't listen to that over analysis

[@jimmymcgill6778]

All that calculator math was starting to hurt Dave's head. So he had to put a stop to that.

[@adamseidel9780]

“Whoa whoa whoa, somebody is actually looking at these numbers really closely, better say the rules are flexible!”

[@abrahamflores2566]

I don't think Dave has ever ran the numbers on 15 year mortgages besides "YoU PaY lESs inTeREsT on A 15 YeaR MoRTGAge"

[@jimmymcgill6778]

@@abrahamflores2566 But you can invest that difference and make money.

[@abrahamflores2566]

@@jimmymcgill6778 exactly, you can payoff your house faster on a 30 year loan if you invest the difference

[@jimmymcgill6778]

@@abrahamflores2566 And have some money left over.

[@BigPhil2024]

4:58 in - what's your question lol

[@mluterancik]

His wife must love him 🤣

[@jordandowland7256]

She probably falls asleep every night to him reciting earnings reports verbatim.

[@camronRD]

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

[@cyclonejunior]

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

[@allan2263]

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?

[@cyclonejunior]

@@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

[@arizonalifestylechannel2186]

This is actually a good Video, A lot of people watching get an accurate idea of what's actually doable.

[@Takar100]

He's a business analyst that over analyzed. I can relate. I laughed when Dave said, "Don't over-nerd this." Analysis paralysis.

[@Cyber_Guy2]

He definitely has the Analyst mindset lol. As an analyst, from now on I’m thinking if I’m over-nerding the analysis lol.

[@oldfordman68]

Never buy a house in a HOA

[@onetruth5073]

Why

[@christopherstimpson6540]

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.

[@mikebayless4268]

Business analyst can't even answer a simple question... 😂

[@learenng1267]

Mans was losing me too with all the numbers 🤣🤣🤣

[@travlepreneur]

I laughed hard

[@joeriveracomedy]

Business OVER anaylst. Am I right or am I right?

[@Hallowsaw]

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

[@viktorandy6080]

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

[@chronicleabsolute]

HA! "Dont over-nerd this". I must use that statement in day to day conversations!

[@nevertime1246]

LOL just heard that too

[@mrcrowleyoz]

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.

[@johndone8045]

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

[@Whatorwellsaid21]

Mine in Miami is almost 50% of my monthly take home. These people freak out over nothing.

[@brrberrymerry]

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.

[@selfreliantb2363]

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.

[@kbanghart]

Like here in California it's pretty good

[@stephenmcnamara8318]

worst caller I have ever heard

[@choicemeatrandy6572]

Lol dude showed up with an entire encyclopedia and percentages

[@MrDedvalson]

We just paid off our mortgage. Thank God.

[@livcruz8972]

Is this guy just trying to pitch "his calculator" to Ramsey Solutions?

[@timmysfittness903]

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.

[@dt6750]

this caller is killing me

[@jesserh5908]

Lol he was throwing out hella figures n Dave said hold up stop stop ✋️

[@FrenchCruller03]

Ouch on the property taxes! I thought ours were high in Massachusetts, but they're about half that rate.

[@djpuplex]

NY for ya.

[@kbanghart]

California is less than Texas

[@TheEdward1953]

A 7:44 show guest 20 second comment Dave was the star of the show again

[@jordandowland7256]

You have to wait until 4:55 for him to pop the question.

[@alinatamashevich3354]

My head is hurting now!

[@jordandowland7256]

@@alinatamashevich3354 ужас 😩

[@alinatamashevich3354]

@@jordandowland7256 PTL for the "mute" button

[@stevencaruso825]

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?

[@V31lCl0ud]

You don’t.

[@abrahamflores2566]

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.

[@adamseidel9780]

You don’t under Dave’s absurd advice unless you live in the sticks

[@lucaspm98]

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.

[@jimroscovius]

You either wait or you move. Don't live in those expensive places.

[@kylebaddog5084]

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

[@tylerhair9067]

Most people can’t afford a 15yr mortgage these days, especially if you try to stay in this 25% range. Good luck with that!

[@zachwalters8001]

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.

[@wingsandstrings6626]

Well that advice would mean I would be able to afford roughly a 130k dollar house. Impossible to find .

[@kinghashbrown6951]

Rent, move, or increase ur income. Stop complaining

[@AlecArtComics]

@@kinghashbrown6951 it must be comfortable having such an infantile and simplistic worldview.

[@kinghashbrown6951]

@@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.

[@t.marieking3239]

Amen

[@t.marieking3239]

A starter home in Dallas went from $250k to $350k home prices are insane so what do you do?

[@eurekahope5310]

Wow! NY was crazy high property tax! Yikes!

[@djpuplex]

Mostly school taxes. There's a reason the teacher in NY end up millionaires.

[@aliceserafin7613]

I loved "don't over need this". Lol

[@bclaude87]

He said, "Don't over nerd this"

[@chrisphilips2768]

Most Americans who listen to Dave are doing well financially so a 15 year mortgage should 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 mortgage. We did the 30 year and try to pay extra.

[@totherevolution]

This caller likes to hear himself talk.

[@somelolplayer6199]

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.

[@mikebayless4268]

Dave's math mortgage formula 2(Annual income) + down-payment = What you can afford to buy

[@greenstone09]

this guy is smart he need to make more money

[@interminablyperplexed4903]

Was taught that in 1989 home ec high school class...was a good number then and holds true.

[@somelolplayer6199]

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.

[@dougsmith3821]

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.

[@aaron5471]

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 😂

[@yarossnydertime6225]

Dave, don’t over nerd this 😂 it doesn’t take rocket science Matt

[@Rollingthunder517]

Everybody gets approved !baby steps… thank you Dr. Leo Marvin thanks for seeing me!!..Bob???😮

[@hastycontemplation]

"Overnerd" lol!

[@siennab7774]

Ramsey needs to expand their guidance to release baby steps for “how much house can I afford”. The 25% rule is not helpful. Budgeting has to be an exact science but this part doesn’t?! It’s likely the largest expense in the budget. And if you’re off by just a little it can make all the difference. Shouldn’t it be based on actual take home and total home expenses instead of just after taxes and house payment? People have 401k, Roth, child support, HSA contributions, insurance, taxes, daycare; 529, elective deductions etc. And home payments include bills, taxes, insurance, HOA. The way people calculate what they can afford can be totally skewed by what’s included. It’s terrible “guidance” for people who became debt free by being analytical and watching every dollar. Huge opportunity to break this down here for people.

[@rthellman]

The assumption is if it is 25% of your takehome then you can afford to balance the other items you lost above. 25% is an exact number and works for everyone. I'm not clear on what your concern with it is.

[@Drayelam21]

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.

[@jordandowland7256]

Congratulations and good luck!

[@ellencox8415]

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.

[@Whatorwellsaid21]

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.

[@jasonshowmaker6330]

Lol; "don't over-nerd this"

[@davidnonnenmocher5122]

Whew he sure rambles

[@andrewfyfe8219]

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.

[@blackworldtraveler3711]

Have at least 48 states to choose from.

[@puritygathoni4043]

I love Ramsey, I’m so glad I found your videos. I was drowning and this man saved me.

[@MartaRinker]

Amazing video, A friend of mine referred me to a financial adviser sometime ago and we got to talking about investment and money. I started investing with $150k and in the first 2 months, my portfolio was reading $274,800. Crazy right!, I decided to reinvest my profit and get more interesting. For over a year we have been working together making consistent profit just bought my second home 2 weeks ago and care for my family.

[@BrandonIvan-c6e]

Hi. I’ve been forced to find additional sources of income as I got retrenched. I barely have time to continue trading and watch my investments since I had my second child. Do you think I should take a break for a while from the market and focus on other things or return whenever I have free time or is it a continuous process? Thanks

[@MartaRinker]

@@BrandonIvan-c6e However, if you do not have access to a professional like Clementina Abate Russo, quitting your job to focus on trading may not be the best approach. It is important to consider all options and seek guidance from reliable sources before making any major decisions. Consulting with an AI or using automated trading systems can also be helpful in managing investments while balancing other commitments.

[@BrandonIvan-c6e]

@@MartaRinker Oh please I’d love that. Thanks!.

[@MartaRinker]

@@BrandonIvan-c6e Clementina Abate Russo is her name.

[@MartaRinker]

Lookup with her name on the webpage.

[@LIMuscleBlackdevil]

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.

[@harrykashouli9774]

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...

[@2wheeldom11]

$175k house in NY, lol good luck.

[@anthonytroxell]

What’s the benefit of a 15-yr mortgage when most people aren’t in a home more than 5 years

[@calebscott7828]

I would love to know where this guy is finding a property in New York for 200k

[@SuperpowerBroadcasting]

The only people who can afford Ramsey's ratios on mortgages here in British Columbia are already millionaires. Everyone else would need to move

[@godsdozer]

If you have to ask,"how much can we afford"....................you cant

[@natejohnson2908]

That boy started Rambling like a mf 😂😂

[@bclaude87]

"Don't over NERD this" - Dave Ramsey

[@RhinoXpress]

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

[@davidthackham4955]

Bro is a gold medal yapper

[@ibislife]

Take out a 25-30 year mortgage, as life will happen, and you need money for kids and cars and what not. Inflation, and value of the home will help you build equity. And a dollar today is worth more than a dollar in 25 years. I hate that percentage you operate with. You are in your early 30´s, your income will increase. And eventually the mortgage payment percentage will make that percentage lower.

[@MrTedTederson]

Think this caller is grossly underestimating school & property taxes in rochestet / Monroe County NY. For a 200k home in any of the suburbs itll be double his $6200 per year at a minimum for combined school & property tax. Monroe Co NY has the highest taxes as a percentage of the home's value in the country. On top of which both city and suburbs are oppressively aggressive with jacking up tax ans assessment values each and every year. I live in rochester and can more than afford a mortgage payment. But I dont buy because I refuse to pay the town or city 300% the value of the home in taxes over the life of the mortgage.

[@andrewkramer7412]

Love to know where can get a house for 175k in NY

[@arizonalifestylechannel2186]

Rochchester

[@786otto]

Just wonder where in NY can get 176 G house