The Best Way To Buy A House - Dave Ramsey Rant

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[@KennedyVerbruggen]

Back in the day, when I purchased my first home to live-in; that was Miami in the early 1990s, first mortgages with rates of 8 to 9% and 9% to 10% were typical. People will have to accept the possibility that we won't ever return to 3%. If sellers must sell, home prices will have to decline, and lower evaluations will follow. Pretty sure I'm not alone in my chain of thoughts.

[@firefighter-i6q]

Home prices will come down eventually, but for now; get your money (as much as you can) out of the housing market and get into the financial markets or gold. The new mortgage rates are crazy, add to that the recession and the fact that mortgage guidelines are getting more difficult. Home prices will need to fall by a minimum of 40% (more like 50%) before the market normalizes.If you are in cross roads or need sincere advise on the best moves to take now its best you seek an independent advisor who knows about the financial markets.

[@vanessahopkins-g5y]

I wholeheartedly concur; I'm 60 years old, just retired, and have about $1,250,000 in non-retirement assets. Compared to the whole value of my portfolio during the last three years, I have no debt and a very little amount of money in retirement accounts. To be completely honest, the information provided by invt-advisors can only be ignored but not neglected. Simply undertake research to choose a trustworthy one.

[@NorthCarolinaForward]

I will be happy getting assistance and glad to get the help of one, but just how can one spot a reputable one?

[@vanessahopkins-g5y]

'Rebecca Nassar Dunne’ is the manager I use. Just research the name. You'd find necessary details to set up an appointment.

[@KatyaSantos-g4c]

She appears to be well-educated and well-read. I ran an online search on her name and came across her website; thank you for sharing.

[@JB-tr2un]

I'm 26 years old and recently bought my first property with cash, 100% down. 416 sqft condo for $55,000 in a good neighborhood of Tampa, FL. I don't have any mortgage or rent payment. My only monthly expenses are $158 HOA (which includes water, sewage, trash, cable TV, outside maintenance, insurance, pest control) and electricity. When I rented I was paying $575 for rent and higher electric bills. Now by owning I've stabilized my cost of living and able to save over $500/month and am paying myself what used to be my rent payment. Plus I live closer to work, so spending less on gas, my commute is only 4.9 miles each way. I also own my car outright and still have over $16,000 left to my name after purchasing the unit and 0 debt.

[@Celti_]

J B god bless! Thanks for the inspiration

[@jamericanrebel]

Wow I should do that. I’m 24 years old and I have just over 50k in cash, bought my car in cash and have zero dollars in consumer debt. Just need to save up another 15k which should be fairly easy and buy a two bedroom condo in Florida 😊 been thinking about this for a while..

[@nataliebaker8149]

J B that’s very admirable. $55k and in a good neighborhood? I wish Houston had that.

[@ilovenyc2129]

J B i wish i could do that in california 🙈

[@alexbella99]

what area in Tampa ??

[@mariamindful6510]

"Children do what feels good, Adults devise a plan and follow it through ". Best advice ever heard in my life

[@KaseyMoore-hc7mf]

Exactly why someone I know bought a 100 year old home and has a $1400 because they didn’t want to rent. I live in the same town and my rent is $650 and I have more amenities than they do.

[@kobekile8099]

I'm 42 and my net worth is now up to 700k. My son is just now turning 19 and has already paid for his car is debt free with a full ride to college. Thank you Dave!

[@jacob_gang]

Congrats!

[@mr.robertson5387]

Dude that's awesome! Amen! Now your son can to that for your grandchildren. Amazing work sir, your know how to raise a family.

[@GavinDaGrey]

If you don't mind me asking, how did u go about accomplishing this?

[@arravYT]

knowledge is truly power.

[@kbanghart]

@@GavinDaGrey inheritance

[@Rachelp4u]

I know one thing for sure, starting early is the best way of getting ahead to build wealth, investing remains a priority. The stock market has plenty of opportunities to earn a decent payouts, with the right skills and proper understanding of how the market works.

[@Tom-l2n]

What are the best strategies to protect my portfolio? I've heard that a downturn will devastate the financial market, so I'm concerned about my 300k stock portfolio.

[@janecornard3029]

There are strategies that can yield solid gains in any economic situation, typically implemented by a portfolio strategist with a lot of experience. My friend introduced me to a financial advisor in 2022 and even though I was skeptical, I went on. I finally was making enough monthly dividend to quit my soulless job and pursue my dream

[@shuraandrew]

Most folks downplay the role of advisors until being burnt by their own emotions. I remember couple summers back, after my lengthy divorce, I needed a good boost to help my business stay afloat, hence I researched for licensed advisors and came across someone of utmost qualifications. She's helped grow my reserve not with standing inflation, from 275k to 750k

[@Tom-l2n]

Talking about advisors, do you consider anyone worthy of recommendations? I have about 100k to test the waters now that large cap stocks are at a discount... Thanks

[@shuraandrew]

@@Tom-l2n Kathryn Denise Isernhagen is the licensed advisor I use. Just research the name. You’d find necessary details to work with a correspondence to set up an appointment.

[@ChristopherAbelman]

Prices can go upquickly. Homes I was looking at 5 months ago are $40,000 more now today. They likely will go back down but then again they might not any time soon. Always a gamble. So a decision like this may result in a home price going up 10s of thousands of dollars.

[@HildaBennet]

Investors should exercise caution with their exposure and exercise caution when considering new investments, particularly during periods of inflation. It is advisable to seek guidance from a professional or trusted advisor in order to navigate this recession and achieve potential high yields.

[@PennyBergeron-os4ch]

You are right! I've diversified my 450K portfolio across various market with the aid of an investment coach, I have been able to generate a little bit above $830k in net profit across high dividend yield stocks, ETF and bonds.

[@bartlyAD]

Where may one locate an experienced FA? I like the notion of employing their services, but it's terrible that recent stock market tragedies have started to happen more frequently.

[@PennyBergeron-os4ch]

The fiduciary that guides me is Rebecca Noblett Roberts, most likely the internet is where to find her basic info, just search her name. She's established.

[@bartlyAD]

Thank you for this. I'm need for proper quidance, found her webpage and dropped her message already.

[@TPainWhatitDo]

This video is 5 years old. I remember the situation I was in 5 years ago. "A 15-year fixed where the payment is no more than a fourth of your take-home pay," with 20% down, which is what Dave recommends, was almost possible for me at the time. Things have changed for the worse

[@fdllicks]

What he said: get 15 yr fixed, put 20%down. You payment shouldn't be more than 25% your takehome pay.

[@RyanR-lc8xo]

Thank you

[@EXTRA---LARGE---FARVA]

Including insurance, taxes, and HOA fees.

[@LuisRivera-qh9oe]

25% of weekly pay or monthly pay?

[@joedoe7839]

@@LuisRivera-qh9oe Monthly.

[@Ajcruz913]

Take home means after taxes right?

[@BrendanEvan]

Honestly it was painful to only buy a house with a payment less than 25% of our take home pay. We are the strange people who bought a cheaper house than our friends. But we have so much flexibility in the budget and such low stress, it’s amazing.

[@georgewagner7787]

You did it right. Don't buy a house to impress.

[@CantBeHammy]

You did great Brendan, don’t go broke keeping up w/ the Jones. Congrats

[@mrs.amandaheadley8165]

Brenden, I'm curious what were the numbers?

[@ccg123isall]

If you can afford a second and a third later…who’s really winning?

[@Ric7878]

Majority like to keep up with the elite. It’s so much peer and society pressure to out-show others that your success lies in your big house and shinny car. If you drive or live in a normal house your rich friends will believe you are broke or either earning less. We have a 13 year left on our mortgage and paying below 2k at 1.8% interest rate . Heavenly feeling

[@haleypage2947]

I’m 23 and I just paid for my house in cash today! Just left the bank & it was $325,000 for the house, I negotiated down to $300,000. Then since I’m paying the house in cash, my closing costs were cheaper so I paid $297,000 in cash! 😊 I close next week, I’m so excited I’ll get the title in hand immediately 🎉 can’t believe I’ll own a home by 23 in full! 🥰

[@andrewb9708]

I'm 7 years old and just paid $900k cash for my third house. This is so easy.

[@LoveFamilyLife]

My husband and I lived on one income, and saved then other income for almost 2 years for our emergency fund and down payment. We had no debt. At ages of 21 & 26 we bought our first home, put 20% down on a 15yr mortgage and still had 15k cash to fix it up with (it was a foreclosure) Now not even 6 years later, we have paid some extra every month I no longer work but we learned to live on 1 income so we are fine. We have 4 kids, a good amount in retirement and only owe 40k on this house that is currently worth around 190k. We both come from poor families never had any help from anyone. We did this ourselves by just keeping priorities straight. It works!!!

[@personallyjoua]

Amazing!!!!

[@lunadexelaju3494]

Wonderful! Great job👍 U give me hope

[@bsr8129]

and your jobs are what where you can buy a house at 21 an 26????? living wear???

[@emsea1658]

just being honest I feel its sad to imagine a childhood where your parents put you on KZbin for views. I feel fortunate to have grown up well before this era in humanity

[@gittin_funky]

emsea I was thinking the same today. My kids watch these families on KZbin and the kids have to more and more outlandish things to keep people watching. I’m sure they’ll regret missing out on normal growing up and may even have physiological issues when they are older

[@CarlosFontes]

Buying a house when you're broke = "Let's have a baby, that'll fix all our relationship problems!"

[@davidjenson7773]

Love it heard this more then once. David Jenson chicago

[@mariaplazasrealestate9697]

Thanks for your comment. HAHA. Funny.

[@wmc9722]

If you are 'broke' how are you able to purchase a house? Who is this lender? How that relates to people copulating is beyond me.

[@Naibushon]

u and 210 people are going to stay broke forever

[@erichein1986]

How do u think the 2008 housing crisis happened? Not all real estate agents and banks lenders are as honest like Dave Ramsey.

[@kentrobinson7479]

By the time you save CASH to buy the whole house...THE COST WENT UP $100,000 to $200,000

[@ezeo.7315]

There are many houses in the market that's not an excuse

[@geebee6010]

Here in PA the cheaper the house the worse the neighborhood.

[@townmiles8691]

Dave isn't telling you what to do, he's giving out advice. It's your choice.

[@AaronHernandez-xv4qh]

Avg 5% increase in home value

[@Solidsnake999]

KENT ROBINSON Wait for the market to crash like 2008

[@gct1913]

I've owned and/or managed houses all my life. This is the cruel reality. Dave is right. It's only a blessing if you can afford it!

[@SwaziN]

Please write a book...sorry for not greeting you first, but it seemed more important...on a serious note the more voices we have on this the more can get helped...may Yeshua lead you in your writing of your book

[@mystorykim]

Bought my first home at 47. I did still have debt but not bad. Didn’t have 20% to put down so I had PMI for several years. 7 years later I have no debt but our home, and a year of savings in the bank. Refinanced to 15 year fixed 4 years ago at a lower rate and our home has gone up in value over $100k. Our home is a blessing and if I had waited to get all of these steps in place I would have missed out on this opportune time to buy a home when housing prices were low, interest rates were low and right before all of value in home prices went up. I wouldn’t be able to afford nearly the home I have now if I had waited and we are in much better financial condition now because of it. Am I the exception? I believe God led us to our home and the time to buy.

[@minimalist_monk]

God moves mountains

[@Buggu3]

Yup!… Dave callers don’t live in NYC so it’s easy for them to save 100k there is no 100k house in nyc

[@fkillah]

@@Buggu3 move out of nyc

[@Buggu3]

@@fkillah and work where??…. I make my living in NY so I’m not sure y I shud move?

[@fkillah]

@@Buggu3 you act as if you can only work in NY but then complain about the high cost of housing. You control your life, do what works best for you.

[@rustydoorknob5108]

Just bought my first house! i'm 22. I put down 35k after working for 5 years without parents assistance etc! I couldn't be happier :-)

[@MYKECHEXX]

Mr Eurx congrats 🍾

[@edwinmedina4338]

👏 that is Phenomenal!!! Congratulations

[@bobbyweirddick6556]

Well done 👍 now careful someone gets half of it

[@davidrabbit8868]

Bought where

[@erik5354]

@Deirdre Morris Partners? how do you know Mr Eurx is homosexual? the term 'partners' is what homosexuals use.

[@blazers12369]

99% of these comments: I’m 9 years old buying my first house for 800k cash

[@Namiswwwan]

Working more, spending less and Don't have children until you are financially ready.

[@Splixy]

@@Namiswwwan you went wrong from the first word: working

[@Splixy]

@@Namiswwwan and its not spending less, its making more so you can afford more

[@Namiswwwan]

@@Splixy k

[@Splixy]

@@Namiswwwan didn't expect a latina to know this anyway

[@issadogboss4380]

Dave I just found you on KZbin I used to have lunch with you everyday at work on the radio so it is nice to see who was giving me all that wonderful advice. Only regret is that I didn't learn sooner how to deal with debt. But now no debt cash is king own my home no mortgage and no stress now retired. Thank you.

[@Aj0691202]

I built a new house when I was 22 for what i was paying in rent, sold it 4 years later for 80k more and paid off all my student loans and built a better home. Pay attention to the market

[@andrewb9708]

@@Aj0691202 Where did you get the capital to build a home at 22?

[@Mountainhippiedude]

When buying my first house, I specifically wanted a house I could pay off in 3 years. My real estate agent and my mortgage broker both did all they could to attempt to convince me I was making a terrible mistake by not buying a more expensive home. I am so thankful I stuck to my guns.

[@prncessbaby16]

how much was the house?

[@sarahann530]

courageous1964 I did not realize you could get a mortgage on a house with wheels

[@Allin1mom]

We did the same thing.

[@jobokidd]

I made a budget to calculate what mortgage payment I felt comfortable with. I was shocked what my mortgage broker was pushing- 3 x as much. I’m glad I stuck to my guns too. People need to make their own decisions. Banks etc are trying to make $ off you.

[@iamkat-agnt99-ash-kbt.59]

Well done!

[@MikeAndCindyJones]

I'm a Realtor in Florida. Dave's advice is spot on. I have been completely debt free for over 10 years. Paid cash for a condo. Lived in it for 5 years. Sold it for a nice profit and bought a house for cash. In 3 years I've gained a little over $60k in equity. One thing I have learned about being debt free is you fall out of the credit rating trap. In other words if you do not borrow money on a regular basis your credit score will plummet. At that point your options are few when you apply for a mortgage. If you can qualify for a mortgage after getting out of debt... a 15 year is the way to go if you cannot pay cash.

[@patandbrandi]

I'm sick of people saying I remember when rates were 15% or 20%. That was when houses were cheaper and you could earn money in a CD, also money was worth more.

[@jessicalt4121]

Yes, also in 1999 gas was 99 cents per gallon. It’s not apples to apples comparison.

[@dinahsoar6982]

@Pat Yes. When I was paying a fixed mortgage rate of 15% in 1984, I was earning 10% on my savings account! With no risk b/c it was FDIC. It was incredible. Years later, when the mortgage rates dropped to 7% I was still earning 4 to 6% on savings. I planned my retirement based on those numbers. Then the gov't stuck their nose in and the banks don't want our money, they get it from the gov't who is making money instead of us. Also that $42K house I bought with the 15% mortgage today would cost $156K @ 3 to 4%. Give me the 15% with 10% on savings any day.

[@picklerix6162]

It benefits the govt. to keep interest rates artificially low but it really hurts retirees with savings who are on fixed incomes. Some day, the asset bubble will burst (again) and a lot of people will go homeless.

[@Countcho]

We’re gonna go back to high interest rates, which will lower the prices of houses, but it could take many years

[@9989Wolverine]

Yeah CD accounts were 18% for 6 months

[@mtbokor1969]

I actually think this is amazing advice. We live in a world where everybody wants the biggest and best thing immediately. Whatever happened to a starter home and as you build wealth, you move up the ladder. I think the advice of no more than 25% of your takeoff pay is also great advice.

[@tarjab9151]

A paid off home mortgage is taking the place of BMW as the new status symbol ❤️

[@thiendoan9788]

I've got one year to go .. or before I turn 50

[@lisavaden9903]

His guote is " A payed for home is like diving a " New Mercedes"

[@Ghost-ly3wx]

I bought my BMW for $650 cash, most fun car I have every had

[@andrewjackson3486]

HA as if. All of my friends lease cars while I'm in the middle of saving for a house.

[@yeseniarosario1006]

I love love real estate as well. It remind me when I was 20, bought my first house. Sold it 5 years later when the market was sky high, made a profit of 200k. Now 37 and I own 3 properties (2 rentals) and I love it! I have inspired others to do the same.

[@Aj0691202]

I would rather build a forever home on a 30 year mortgage and have my family grow in that home than live in a apartment saving for a house that in 5 years I wont be able to afford. Average house price here has doubled in past 8 years.

[@Buggu3]

Tru… if u put it off… by the time u save all that money the house is worth more u still can’t afford it😂

[@kbanghart]

@@Buggu3 exactly. My wife and I bought a home we have trouble paying for, but it's in a school district we wanted, paid the minimum down, and now it's worth about 200k more than what we owe on it.

[@stephenshelton4267]

Fun tip: buy a house with a 30 year mortgage and use a mortgage calculator to see what you'd pay on a 15 year mortgage. Take the difference and add it to your 30 year mortgage payment as an additional payment towards your principle and voila! Suddenly your 30 year mortgage will act exactly the same as a 15 year mortgage, but if the proverbial horse-squeeze ever hits the fan in your life then you can fall back to the cheaper 30 year mortgage payment without any negative consequences whatsoever (remember this was the monthly payment the lender expected all along) and you can ease your way through a tough spot. Good luck doing that with a 15 year mortgage.

[@tylough]

Genius!

[@shecandoit4801]

This is an excellent tip. It Makes perfect sense.

[@holmiumh]

Normally with 30yr mortgage the interest rate is gonna be slightly higher. So there's still a small price to pay for the flexibility.

[@TicMoney1985]

Great tip but most no one will do it is the point

[@franky01ize]

Nice way to put it, Dave seems to speak to people making 150k a year

[@DreamweaverShade-h9p]

I started stacking to SAVE wealth. I've always been the type of person to spend my entire paycheck. I hate having money just sit in the bank. I am under pressure to grow my reserve of $950k. before I turn 60, I would appreciate any advice on potential investments.

[@devereauxjnr]

I can feel your pains. New guys need to realize the risks that come with all of this. You could lose it all and you could win it all. It goes both ways. Second, what works for A may not necessarily work for B and you should not be a bandwagon investor. A good number of folks are raking in huge 6 figure gains in this downtrend, but such strategies are mostly successfully executed by folks with in depth market knowledge.

[@Tsunaniis-j5l]

@@devereauxjnr Factos!! Since the market became extremely volatile and pressure increased (I should be retiring in 17 months), I took the decision to work closely with a financial advisor. It has already been 9 months and counting, and I have made approximately 600K net from all of my holdings.

[@MakeamericaGreatagain-h7j]

@@Tsunaniis-j5l That's impressive, my portfolio have been tanking all year, tried learning new strategies to gain in the current market but all of that flew right over head, please would you mind recommending the Adviser you're using.

[@Tsunaniis-j5l]

@@MakeamericaGreatagain-h7j credits to NICOLE DESIREE SIMON, one of the best portfolio manager;s out there. she;s well known, you should look her up

[@MakeamericaGreatagain-h7j]

@@Tsunaniis-j5l I looked up NICOLE online using her fullname and researched her accreditation. She seem very proficient, I wrote her detailing my Financial market current position, goals and scheduled an appointment. Thanks

[@painintheknee1209]

I am a real estate agent in San Antonio.When you don’t buy a house, and you still rent, the rent is higher than a mortgage to begin with in San Antonio. A year after you buy your house, rent has already surpassed your mortgage payment. Rent is outrageous here. I recommend you buy now. Especially when rates are rising and the prices of homes are in a Sellers market.

[@floppyflaps8781]

So basically I need to move out of CA haha

[@warcamp70]

You should run from CA.

[@picklerix6162]

Somebody has to pay the high taxes.

[@kshitiz06]

Yup. I did that 4 months ago. Moved to Texas. I make almost same as what I was making in California. Back in California I didn’t know what to do with that 20,000 per year saving. But here in Texas I am already thinking about buying multi family home. California can be addictive. I know people living there for 8-10 years. They know very well that they can have a better life outside of Cali, but it’s difficult for them to give up the luxury of beaches, mountains, hiking every weekend.

[@barrontrump3943]

Franky Baby im planning on moving away within the next two years

[@MsSmashone]

@@kshitiz06 There are beaches and mountains in so many other places.

[@m0oman]

In Auckland, New Zealand the average house price is around $900,000. I'm 28 and the property I bought is valued at $980,000. I had to put a 20% deposit because banks are strict here but could not afford to pay it off across 15 years. I have $740,000 debt on the property and the repayments are $3500 a month across a 30 year term at just over 4% interest. Home ownership is stressful here and wish we all could have $200,000 mortgages.

[@billdemaineiii6979]

I am basically a child in these matters.. though I am 57!years old. Dave Ramsey you taught it in a way I could understand it. Short, sweet. Stories to support. Examples to help me see. And a peek into some of those areas that would be completely unknown to someone at my understanding and experience level in the ‘buying a hone’ decision. Thanks ve needed everything you laid out here and 70% I would not have even thought of. You did the research, you did the trial and error and you’re living the lessons. Who better to ask? And who better to teach it? Thank you sir. God bless you. God bless your family. God bless your business. Most of all, Blessed Be the Name of the Lord.

[@nrg1123]

I just bought my first home thanks to everything I learned about saving and budgeting from you Dave, thank you!

[@jiggasvr6]

with $35,000 down, i bought a house and made 10 times that amount back in equity by the time my 3 year mortgage term was up.

[@rons.6683]

Seven years ago before I became a Ramsey disciple I bought my house, although I was broke. WHEW!. Man did I ‘luck out’!

[@drgreene1013]

Anyone else addicted to these Dave Ramsey clips??

[@surjeudi2249]

I think some of yal are missing his point. For everyone saying its unrealistic because of the high costs in certain areas, he's basically saying if YOU can't afford those high prices, don't buy a house in those areas until you can afford to do so. Imagine if people used this plan, house prices would drop because people would stop buying houses they can't afford. If no one is buying, prices have to drop.

[@Donnafrank-k6e]

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.

[@patrickhenandez]

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

[@Donnafrank-k6e]

@@patrickhenandez 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.

[@patrickhenandez]

@@Donnafrank-k6e Oh please I’d love that. Thanks!

[@Donnafrank-k6e]

@@patrickhenandez Clementina Abate Russo is her name

[@Donnafrank-k6e]

Lookup with her name on the webpage.

[@mycrazyfamilyid]

We did a 15-year loan with 3% interest and 20% down payment in October 2016. We were so lucky. About 2 months later a bunch of houses in my neighborhood went on the market for $100,000 more than what we paid for our house! Now we're making double payments. Woohoo!

[@SpiritLeash]

MyCrazyFamily well done! Make sure you have enough money behind in case no money is coming in anymore.

[@katrinaumana2127]

MyCrazyFamily My husband and I bought our house in 2011 forfor $65,000 My next door neighbor sold her house for $252,000 last year. All our houses are cookie cutter. I think we should sell our DC area home and buy free and clear a house in Cartersville, Georgia.

[@GAMRMNTS2]

MyCrazyFamily 👍🏽👍🏽👍🏽👍🏽

[@HarleyDavidson_360]

+Katrina Umana you bought a house for $65k where?

[@notnoternexto]

2011. houses were that cheap after the crisis.

[@lucaswheeler4746]

I'm 15 Dave and i have already started your courses and have listened to most of your podcasts. I love listening to you

[@samanthagray3201]

We sold our very expensive house where the mortgage was half our take home pay because we had our phd in d.u.m.b. and used our equity to completely pay off our debt and we bought a much cheaper home where our 15 year is only $649 a month so now we double our payment, have a very comfortable emergency fund, and now we have fun money that we never had for years. We get to go on our first vacation this year. It has certainly taken sacrifice and people that we were crazy but we can finally breathe and relax because the financial stress is gone! I wish I would’ve known this years ago!

[@frikyfrankie]

Sometimes people can't afford a 15 year note. For that I say get a 30 year note and just pay extra payments every month to the principal to pay if off sooner. Maybe 20yrs or so depending how much extra you kick in.

[@dobson777a]

The first house I purchased (age 24) had a mother-in-law apt in back. I lived in the back essentially rent free since the front house covered the mortgage and insurance. A few years later after I was married we moved into the front house and rented the back which paid half the mortgage and insurance.

[@BriLoveMusic]

dobson777a That's so smart!! Lol wow. Wise thinking. 🤔

[@ANoteToSelf]

Genius

[@yeimyramos7860]

totally what happeds though when u rent you loose part of the discounts on taxes for homestead atlas thats the way is done in florida

[@nathanlee1112]

Y’all should go look up BiggerPockets. They have coined this strategy as house hacking. Many do it!

[@victorynowall]

I am sure you are very happy now and stress FREE

[@dlaw5859]

Take ramseys knowledge & use it but use it to fit your needs. I only put 5 percent down on a 30 yr but I over pay 4-500 per month & the over payment goes toward principal. Let those papers say whtevr makes u comfortable. Just b smart about it. Most ppl dont want to b obligated to a 15yr but that doesn't mean u cant strive to pay your 30 yr in 15. Don't let ppl born into money make u feel inadequate or like you're making a bad decision because u don't have 20% down for your 1st home. Just be smart & let a reputable lawyer & inspector guide you. Its not that hard.

[@janetmcdaniel1112]

Dwayne Wayne thank u so much. This gives me hope.

[@jeffferguson69]

Dwayne Wayne great comment

[@Blessedanitakaizer80]

Great comment. Thank you

[@Gunngirl]

Appreciate that.I like Dave’s advice, but not everyone is looking to buy a $200,000 home.

[@bamaman5252]

@@Gunngirl I'm not age 24

[@seaworthytdog]

"you won't work on your car by yourself, why would you work on your house" is a nice way of saying I pay for that. If you can do something yourself you should. These kinds of skills are invaluable and as you learn will turn emergencies into inconveniences

[@truthseekerKJV]

I'd like to hear his response to this question : If you're broke, and your rent is $2,000.00 a month, and you can buy a house with a mortgage of $1100.00 per month, wouldn't it be a good idea to buy then ?

[@SOSIDITTYBABY]

Tim Campbell no he would tell you to downgrade your living home and save up to buy cash

[@teddypenland4500]

Sometimes the answer is an income problem. 2nd be willing to relocate to increase the purchasing power of the income you make in your trade/profession.

[@aaron___6014]

Why is your rent that high?

[@truthseekerKJV]

@@aaron___6014 Because I live in California.

[@eddy6510]

Let's say you are 30 and buy a house for 1100.00 / month. By around 50 or so you own the house. My question is : When you pay rent..."0" responsibility and you can relocate in 1month notice But When you buy house..../"100" responsibilities Electricity+water+maintenance+tax+..... Why so much hassle Live free 👨

[@Michael-lo3ht]

A 15yr mortgage sounds fine until one spouse is out of work, or comes down with an illness. You still have to pay the full mortgage payment. With a 30yr you can still double up on payments. At least you have that fallback. If we had done the 15 we would be in that spot right now. When the situation improves we can make the larger payments. Saying because someone has a 30 they would never double up doesn't fit every person or couple. Better to have that cushion than have a catastrophe and lose your house.

[@ValerieMajor]

Still higher interest rates so in the end it’s more expensive

[@Michael-lo3ht]

@@ValerieMajor Actually my son figured it up and it wasn't that much different with the interest rates so low. It wasn't worth the gamble and they can still double up on payments.

[@edgar3105]

30 year interest rates are higher.

[@kdub9198]

Yeah but when you buy a house you'll find a way to make it work. It's like having kids, no one is truly ready...you have to just do it and learn as you go.

[@dextermorgan4172]

Everyone saying, "oh you can just make bigger payments on a 30 year mortgage and pay it off sooner." True, but the fact of the matter is that 99% of ppl will not make larger payments on their mortgage cause they would rather "save" that extra money and just make their regular payment. With a 15 year fixed mortgage, you have to pay a little extra and it keeps you on track to pay it off early and save thousands on interest. Also you get a much lower interest rate with a 15 year mortgage compared to a 30 year. I put 20% down and did a 15 year with a fixed rate of 3.375%. I'll have my place paid off by the time I'm 37!

[@skibum6422]

They are a bit lower not much lower. If you don't have the will power to automatically pay extra then you won't have the will power to pay off any of your debts in the debt snowball.

[@hengineer]

And my interest rate of my 30 year is 3.5

[@hengineer]

And you're wrong. Interest rates are lower on 30 year than 15 because they want to make their money

[@67judson]

I once bought a $200 TV with cash!!!

[@66wow99]

hahahahahahahahahahahahahahahahahahahahaha!!!!

[@tylough]

I hope it was used. Buying new TVs is stupid.

[@nina5-12]

😂

[@kimberlyturner820]

Lol

[@TheCookieFranco]

YAAAAAASSSSSSS!!!!!

[@crownofhair5521]

I grew up in California, and its not as expensive as people claim. Yea, if you want to live a life above your means and you move to Brentwood, BH. Hidden Valley, Calabases, etc. Californians you know what I mean... you will pay the price. I purchased my first house in the 90s for 130 thousand, now the houses in my neighborhood are selling for 510 thousand. Purchased a couple of forecloses in other areas of the valley for under 200 thousand in old areas, but very nice, ranch style with 3 BR, 2 BA. and huge back yards, you just should know which cities to purchase in. Buying a house changed my world. Rent will consistently go up, your mortgage stays the same, if you have a fixed rate 30 year. If you have a variable, it will fluctuate but will cap at a closed % rate, Just be smart, otherwise you'll be paying a lot of 1st and last to rent nice apartments. In California 1st and last can be up to $4500 + your 1st months rent of 1700 - 3000 for a 1 bedroom...get smart people buy some property.

[@msflygurl3760]

Crown OfHair yeah if u want a trap house

[@crownofhair5521]

Check out Zillow...There is a 2 bedroom condo for $249,000. I just found a 3 bdroom in Long beach for 149,000, i'm looking at on Saturday as its smack in the middle of million dollar listings, going to see what the deal is... A trap house is paying above your means and loosing it in 5 years. I found a house 5 months ago in the hills of Claremont for 349,000 very dilapidated...but on an acre of land. purchased, torn down the house and sold the land. If you don't like the area, try to flip it. Believe me there is a way. Dave Ramsey is saying the same, you may have to move to a community where you get alot of house for little money. Its the area you pay for...there are some really nice neighborhoods out there in California.

[@alfredroberts4764]

What’s your email? I have a couple of questions to get started

[@josephkenner4651]

The time to buy is when it collapses is getting ready time. Save as much money. When it happens I’ll be able to buy multi family deals with my partners. 20 more single family rentals my self. The smart people don’t buy when the markets high. Buy and hoping doesn’t work in this world.

[@03edgex600]

@@josephkenner4651 trying to time the market can also kill you

[@mastermagician5126]

This is actually what I needed to hear i think thanks Dave I listen to a lot of what you say im not even making a huge amount of money per year and just practicing the ideas has helpped so much

[@CoffeePoints]

His wife isn't one of Dave Ramsey's great loves?

[@jdmandan]

I thought the same thing!

[@kaycon4823]

😂

[@rons.6683]

I caught that too. Watch out, Dave!

[@insertnamehere9154]

🤣🤣🤣🤣ikr

[@kelseyh3996]

Hes a Pharisee with decent financial advice. Most religious people I know would have said god and their family.

[@jfausset]

Dave, I love your rules: 20% down, 15 yr or less, 1/4 or less of your take home. Well done. I wish people had that much sense commonly. I think you hit on something with the interest rates: they artificially stimulate and sustain the real estate economy. The interest rates will definitely rise as the bond market wanes. Question: what incentive does a buyer’s agent have to push the price of the sale down? Repeat business is more based on relationship than buyer savings. There seems to be no check on sales prices and an entire system built to enrich realtors and inter twine household with with real estate to logic abandonment. Do you believe the average person is better served when artificial stimulus for real estate increases home prices? Thank you for any time you give in response and what you are doing to reduce the household debt of the nation. It is certainly a noble cause.

[@GenerousFarmer]

Best way to buy a house is wait for the Real Estate bubble to pop.

[@GenerousFarmer]

I'm self employed. And have lots of funds available. I'm prepared.

[@GenerousFarmer]

Yeah the FED reinflated the housing bubble.. as well as the stock market bubble.

[@andremoses6128]

It's definately a bubble. Only a idiot would buy when rates are at all time lows. Rates goin up now to fight inflation so everything will deflate or crash

[@GenerousFarmer]

Andre Moses Everything that is debt based anyway.

[@The_BigPeach]

Angela but when you buy, you get some of that money you put in when you sell

[@PrimitiveAK]

i think this video needs to be updated for the current housing market LOL

[@debral9651]

Rent here is 3/4 of the average wage. Which makes it hard to get anywhere...

[@tylough]

Debra L makes it pretty easy go into debtland.

[@atmosrepair]

Exactly! Cost of living and everything is so expensive

[@zenpapi1185]

Average wage or minimum wage ?

[@citygurl0105]

I didn't choose to wait but I don't really really regret. I bought a $76900 house when I was 25. It's a low maintenance and small. Mortgage is $535 and we are steadily increasing our income. Mortgage has only gone up $20 in the past 6 years. I'm working on paying down debt and haven't obtained any new debts. I'm happy :-)

[@Ken-iu2zp]

citygurl0105 What state is that?

[@bsr8129]

my car was more expensive then that, ha ha

[@bsr8129]

@@timmyswrld8783 who would want to live there?

[@geebee6010]

Key word is “we”

[@cryptogf]

bsr8129 yup and i bet ur car compensates for something on ur body lol

[@JohnDoe-hs8qq]

I just don’t understand how he can say “don’t do more than a 15 year mortgage” I don’t know where Dave comes from but here in New York(Long Island) 15 year fixed mortgages either don’t exist or are extremely rare. 30 year fixed is the standard. Especially since an average lower middle class home in NY goes for 500k or more… Get a 30 year fixed rate and TRY to pay it off as quickly as possible. That’s my advice.

[@gorkyd7912]

If everyone refused to do a 30-year the prices would adjust according to what people can afford. Unfortunately this only works if people also refuse to pay exorbitant rent prices, which isn't the case in NY.

[@WhiteBoardFinance]

"Straight cash homie" -Randy Moss

[@Daveraide]

"I play when I wanna play" - Randy Moss

[@MobileHomeGeek]

WhiteBoard Finance "When you rich, you dont write checks."-Randy Moss

[@MobileHomeGeek]

A B same here!! He was quoted saying it smh

[@kooookay9893]

WhiteBoard Finance he’s got more than you’ll ever have ha ha

[@zlatigol9]

K Ooookay lol you're an idiot

[@h.e.1258]

My wife and I just bought our first house for $211,000. We were renting an Apt close to work, the commute was awesome, at only 10 min. But our rent kept going up, and soon we were paying almost $1800 a month, to rent a 1 bedroom, 950 sq foot unit. We did this for 3 years, and decided to invest in some property. We moved out of the city and now pay $1700 month. We calculated we paid the apartment complex over $63,000 in rent. The commute sucks now, but we got some property and can finally invest.

[@naveenbalasubramanian1113]

I got my credit score up and was handed the best deal for my dream home.

[@frenchyalicea649]

Planning on buying a condo all cash, $70k. HOA covers heating, cooling, maintenance of yards etc. Thatll drop my monthly expenses down from $875 to $170/month in hoa. That will allow me to max out 401k, Roth, and building wealth to later buy properties (investment etc).

[@JB-tr2un]

Great plan. I also bought a condo with cash which allows me to save over 50% of my income.

[@jerryjenkins5739]

BEFORE thinking of buying a house google the Case/Shiller 100 year graph. They are 2 Harvard Professors that backed out inflation and graphed the avg value of a house nationwide since 1890. Typically the US Market goes up for 8 to 12 years and then falls for 5 or 6. FOR THE LAST 100 YEARS! We hit a market top in 2006 and fell until 2012, 6 years right on avg. Markets and values have been rising since 2012 so as we enter 2019 that means 7 years of gains. If you are buying now and planning on moving, upsizing, or downsizing in 5 years then the market will probably be dropping when you want to sell. If your plan is to hold for 20 years then value between when you buy and sell is not as big a factor but most people move every 5 to 7 years. If you pay the typical 8% in fees and commissions, then YOU need to be able to predict what your LOCAL market will do in the next few years and if the odds make it worth the investment. Prices are driven by Demand. Demand is driven by population growth and job growth.....Detroit is losing population and jobs so they are bulldozing vacant abandoned houses. Florida, Nevada, and others are gaining population, gaining jobs so their market is going up. Case/Shiller also publish a 24 Major Metro City Index but you have to pay them to get current data.

[@lisavaden9903]

What is the website? I'm trying to Google it and I can't find it.

[@TheCookieFranco]

I once bought a $100 DVD player with cash!

[@kjsciacca]

Cookie Franco I’m calling BS! 😜

[@heedmywarning2792]

3:18 people rarely talk about the maintenance part of owning a house,. And possible HOA fees and taxes. And many don't mention how they got the down payment.

[@Zerostar369]

Dude, that mortgage calculator is gold. So easy to use. Thank you Dave!

[@samuelhirosky4797]

Respectfully, yes, everyone should buy a house. A one bedroom apartment cost what a mortgage on a 250,000 house.

[@HonestFinance]

Thank you for the sound advice. 15 year is hard to afford with most of today’s home prices being so high. Wish it were easier said than done

[@kzimmerman2211]

As long as there are no early pay penalties, you can get a 30 year and pay it off early. That's what I did. I couldn't afford a shorter term mortgage at the time that I purchased my home, but I always paid extra, starting out at just $50/month and increasing each year after that. My house should be paid off next month, putting the term of the mortgage at just over 10.5 years. (I've since married, so my husband is going to throw some of his savings at the balance. Without that contribution from him, I could still have probably paid it off on my own in less than 15 years by sticking to my payoff plan.)

[@HonestFinance]

I agree with paying it off faster. Even though it’s a higher rate, having a lower fixed payment on a 30 is more manageable

[@HonestFinance]

I had a 15 on a condo when I was young, but with a family it’s much harder to get into a home with a 15. With I could be like Dave. I really do

[@apexcapital1328]

Buy something cheap and live in it till you can afford to buy a better house, then rent out the old one. If you can’t pay off your first house in 3 years, it’s too much house for you.

[@granitemoss1451]

Buy something cheap and stay in something cheap, provided it's a decent area!

[@denvercatwoman6561]

K H-C, very good advice!

[@theliftexpert]

Esk8 Forum don’t ever buy something cheap ....instead buy the least expensive house on the nicest street you can afford ....it will work out better

[@dlzk12]

This is exactly we did .We bought a brand new house and paid off in 5 yrs and building new house and planning to rent the old house

[@tho464]

Not here in Cali. Cheapest houses here start at 400K.

[@GordoDustin]

The haters definitely show up in this type of Dave video! He's always said do what you're going to do because you're all adults, but I'm 27 years old and I make $45,000 a year and I live in the Portland Oregon area and housing is too expensive right now so I'm not buying. You're not entitled to own a house when you can't afford it. Stop listening to your broke friends and wait until you have money. At the end of the day you're just going to hurt yourself if you buy something before you can afford it.

[@sarahann530]

Dustin Nelson Your landlord thanks you for paying his mtge

[@billy936]

How efficient do you really think it is to save up an absurd amount of cash, losing money to inflation, and then finally dumping it all into a single house? That's the fastest way to stay not rich.

[@wmc9722]

I forced myself to listen for two minutes (a friend sent me the link) and I cannot go any further. I'll bet this is a wonderful station for some people. God bless them.

[@jasminecontreras7341]

Why?

[@AcidDaBomb]

My grandpa made a killing on real-estate over a 50 year period. He did 30 year mortgages ALL DAY LONG. Last 30 year mortgage he bought was when he was 74.

[@Nick0777]

My favorite video of KZbin! I’m a first time buyer and I planing to pay off a house in 5 years!

[@Final_Boss]

Solid advice, don't make the house you want to own end up owning you. You just need a roof over your head , people are even converting their vehicles into homes these days, I've looked into small housing projects and there are even some built using sea-containers, there are many options out there. Don't give up!

[@heidikitchen]

Dave acts like everyone's situation is the same. They aren't. I don't have time to "do it right". My daughter just moved in to my rental with a premature baby, and that very same day, the landlord texts me and says she's selling the house. There are ZERO rentals in my town 30% or less than my income. The mortgage will be less than 30% of my income. Dave can stick it.

[@chrono106]

Lol, he’s hosting a national radio show. Did you want him to randomly address your exact situation?

[@DesireToHealAndLove]

I 100% ABSOLUTELY AGREE WITH DAVE! DO NOT BUY A HOME WHILE YOU'RE IN DEBT.

[@TeamAwesomese]

This advice was good when it came out. Now that market has changed I disagree. If your state has a homestead exemption of $250K or so, it’s now better to get a mortgage. 7.17% for 30 years rn but your can refinance…. But in the spirit of Mr. Ramsey I recommend high down payment (as high as possible.) and to try to pay off early without jeopardizing emergency expenses.

[@kortneehull2670]

Glad I stumbled upon this channel! Curious to know tips on finding a trustworthy real estate agent, especially here in LA

[@violacrb]

+A B He recommends specific agents, etc. on his website (called ELPs), if you want to set up something like that.

[@Benpire2010]

A B he has endorsed special agents. So they pay him to mention their services (one of the many ways those agents get their names out to the local population about their services). He however will only mention them if they follow the same line of thought as he teaches on the air and in his books. So no he does not charge you personally, however obviously the local agent will charge you for their services.

[@tonyjohnson1305]

Move out of California, simple.

[@vg3273]

200k homes don't exist in greater Seattle area. Gotta spend at least 400k to get a 1000 sq ft shack. We have no choice but to get a 30 year loan to keep payment low.

[@trophyclub9414]

Vitaliy Galenko you have a choice to move

[@picklerix6162]

All of those high-tech hot spots (like Seattle and Silicon Valley) are not affordable even with a huge salary increase. I tell recruiters that I'm just not interested in moving to those places. I make less money but I'm only ten miles from work and the traffic is fairly light on most mornings. BTW, my house is paid off too.

[@autumnonpurpose]

Move

[@Countcho]

I live in the same area as you. Im most likely going to move to a cheaper state

[@EckRD]

@@trophyclub9414 Risk looking for another job?

[@johnwren3965]

There is no difference between a mortgage and rental payment, in terms of cost, now a days.

[@crownofhair5521]

That is true in cost, as some rent cost more than a mortgage. The only difference is that one you never own, after paying close to 60 thousand a year to rent, the other you will own after 30 years or less.

[@edrisjohnson3858]

I disagree with his opinion concerning the 15 year mortgage. A 30 year mortgage allows for wiggle room if the finances get tighter in the future. If a 30 year mortgage is paid as if it's a 15 year mortgage one can still pay it off in 15. It's about having flexibility. It's common sense. It works, I use it.

[@kaycon4823]

Edris Johnson it is common sense versus human nature. People have good intentions of paying the loan off early by adding extra money. However that rarely happens.

[@jessicalt4121]

Kay Con I have heard u can get in trouble and take a financial hit IF u pay off your mortgage early. Depends on contract.

[@kaycon4823]

Jessica LT that's why you don't get a contract where you can't pay it off early without penalty. Most loans can be paid off without penalty. Just recently I bought a car with a small balance on it. I will be able to pay it off in 3 months. Even though the salesman told me several times that I could pay it off early without a penalty,. I insisted on seeing it on the contract.

[@svboyn]

Thats why you follow baby steps to save up emergency fund before a house to serve as the "wiggle room",...his approach makes sense, but what do I know I am not at that step yet...

[@sarahann530]

Spartakick His approach is fine if you want to rent all of your life . Life is filled with risk and reward if you don't take a risk dont cry when realize you are flat broke going into retirement . Ramsey makes his money creating fear among the stupid

[@savingyourfuture1165]

Good points. I think it makes sense to buy a starter home and you can upgrade later. If you can get a low rate of interest and you can invest the funds with 4% or higher and have a mortgage at 3% it doesn't make sense to pay off the mortgage faster.

[@keepthechange1]

I LOVE YOU DAVE RAMSEY! Listen to him people. Get a head and stay ahead. Never try to keep up with the JONESES!

[@aleithiatoews6452]

I want to scream hearing you say the mortgage shouldn't exceed 25% of your take home pay. My husband and I pay 37% of ours for rent because we live in a ridiculously inflated housing market.

[@rebeccalittle2160]

Thank you! 😶

[@AMindInOverdrive]

My brother installed a kitchen into a house that was bought for $65k in Ireland after the 2008 real-estate bubble popped. That house was previously for sale for $340k. The builder had several houses to sell, needed cashflow and agreed to sell when approached by the buyer with a lowball offer. - Save, save, save and buy when the bubble pops. Basic trading/economics will always say, buy low sell high

[@whalingwithishmael7751]

He didn’t mention his wife as his love 😅

[@mrsbethanyelise]

I noticed that too, then I caught that he specified it was "doing what he does"

[@Ayanami0001]

That's how you become a millionaire! ; )

[@JordanLeigh]

We only paid 16% down and paid off the PMI at closing. You don’t have to put down 20% to not have PMI in your mortgage payment.

[@nathankurz]

Watching this in 2024 is crazy to ponder about, especially when he says, “ these wonderfully low interest rates. So if you can’t afford to buy now, you won’t be able to afford to buy, ever.”

[@seanotoolejr5231]

If you live on Long Island you can’t move far enough east to have a house with a mortgage no more then 1/4 your take home pay especially at a 15 year mortgage. It’s unfortunate but it could take 10-15 aggressive years to save a large enough down payment.

[@finch0202]

sean otoole then you’re not making enough money.

[@seanotoolejr5231]

Anthony Dosch well even at 200k it’s not enough most of long islanders don’t make enough to buy a house under those guidelines that’s all.

[@calisurfduuuddee8183]

sean otoole same in california

[@Franchise2930]

Oh I 100% agree. I live on long island, Im debt free with the exception of my 2 bedroom condo. I can sell it and have enough for a down payment towards a $550k house with a decent school district and even though my wife and i make almost 190k it would still be tough to have a 15 year mortgage and live with comfort. Taxes are out of control. 10k-13k a year.

[@BryceJohnson88]

29 and buying my first home for cash. $215k

[@granitemoss1451]

Hats off to you, Sir!

[@wtosin]

where did you out the money for growth. I am looking into a non-IRA or High Yield Savings. Can you please share on where you out the money

[@janetmcdaniel1112]

Mike Stevens do u mind sharing some saving or investment tips? Thank u

[@floored3078]

J-o-b never buy your self anything besides food, 5 shirts and 5 jeans and gas.

[@sarahann530]

Janet McDaniel He got the money from his private lender Bank of Mom

[@forevergogo]

Ignore this guy, Take the 30 year conventional loan, make sure you can pay it off quicker without penalty, throw in an extra payment or two a year- goes straight toward the principal, not the interest. With it being a 30 year, your monthly expense will be lower, and if you keep to putting money at it like you should All debt- you'll pay it off long before the 30 years and the interest won't be as bad as you initially thought. Also- whatever the house hunting website tells you the P&I is for a house, double it and that's closer to what you'll be expected to pay after Taxes, HoA, Insurances, etc. One of the most accurate estimates I got was from the Redfin website, a lot of others make the price look a lot lower than it really will be. P&I: $540 Everything else...: Blank, N/A, Unknown, $28.... Total monthly cost: $568 !! You call the realtor, and quickly learn that it would be closer to $1,100 each month. Avoid flood plains, if you can, flood insurance hurts too. Keep in mind that while condos are a step up from renting- all the things you Hate about renting will still be there.. the close proximity, the ghetto neighbors, the noise, vandalism.. and while you can put a Substantial amount of money down or outright buy a cheap condo, the HoA fee on them is ridiculous! Expect 200$+ In my search in the Houston area, closer to $350 as an average monthly expense. And sure, they keep up with the grounds for you, the pest control, any structural issues, roofing, siding, painting, all of that stuff (or they better!) And is Renting Really all that bad when you consider- you don't pay TAXES. Talk about Throwing Money Away, 400$/mo. for LIFE, okay, so its a couple hundred less than renting... Oh, but I still gotta pay like 1100$ in the other stuff, P&I, Insurance.. And you don't pay HOA stuff, that's All figured in your Rent. Just don't rent a house, too many people are trying to make profit off that. I see houses that probably cost $1200 all said and done each month for the owner, being rented out asking for $1500. Best option if you're single- rent a room from an elderly couple who's kids have all grown and moved on in their lives. You'll probably score some free meals and feel guilted into spending more time with your own parents. Expect to help chip in with chores, pay something super meager $300, $400, something like that. Get all the benefits as if you owned a home. A home with doilies in the living room. CLOSING COSTS. Yah, I just bought my first house. Closing costs scared me the most. And rightfully SO. Nowadays it isn't uncommon for your mortgage broker to require you to pay 6months to 1year in advance for your escrow, stuff like your insurance and taxes... factor in you're also reimbursing the current owner for whatever they paid for the year that they won't be benefiting from anymore.... it can be a real mess and easily cost upwards of 6% of the price of the home. I ended up taking a Larger loan and having the seller cover my closing costs, just so I would still have my emergency funds keeping me feeling secure.

[@kittymande]

at 4:40 he is telling us that if we have a gross yearly income of 120,000 ,the maximum amount of mortgage you can have is 245K. Dave mentions "your payment" needs to be 25% of take home pay on a 15 year mortgage.if he means full payment ...mortgage/tax/homeowners insurance , that amount drops to 220,000 for your maximum financed amount....So you and the wife make a combined quarter of a million dollars ,and live in Seattle or Portland.Enjoy your starter home with a 485K mortgage

[@timmysfittness903]

I understand this was five years ago and probably nobody will see this, but I live about an hour from Seattle and if I wanted to follow Dave’s philosophy, I would need to make $18,000 a month before tax to afford a less than average home.

[@robertsnyder5522]

I put 20% down on my house which equaled $110,000 at the time. I wish I would have put 5% down and carried private Mortgage Insurance and here is why. 5% down instead of 20% would have left $82,500 in my investment account. At a moderate 5% gain on that money would = 345.00 a month in income. The private mortgage insurance due to my credit over 720 would have only been $185.00 a month. So not only would I have greater cash flow....I would have also still had that 82,500 making me money!! Plus I am in the Seattle market and based on how it's going I would have been able to drop PMI is a few years and once in a 20% equity position on the home I don't mind a good rant now and then but the best bet is to talk a mortgage person....and your investment person.......and a professional agent in your particular county and make the best decision for you and your situation.

[@chrisginoc]

The problem is most people want their dream house first or ideal home right off the bat. Climb the property ladder! Buy a fixer upper, work on it, sell a few years later, sell and buy a nicer house.

[@Isaac-px6vl]

That is a great advice sadly people like to be show off and go overboard when purchasing a house.

[@radioactivedynamite]

@@Isaac-px6vl I know people like that at my work that have nice cars but we get paid the same, and it's not even decent enough to afford the decent looking cars they have. lot's of people my age have nice cars but don't have decent paying jobs to save enough for other things, and they probably have debt lol.

[@nickgorayeb612]

i just want to note: find a mortage broker that is willing to work with you if your putting less then 20% down. i put 10% down on my house and they where able to work with me so i did not have to pay PMI.

[@angpen21]

What was the terms to achieve this outcome?

[@chynnjms]

Nick Gorayeb how?!

[@skoutshowecker382]

I like how you really putting knowledge out there!

[@james6490ify]

Our PMI is $67 a month on a $565K house, we put down 10%, yes we have 800 credit scores and no debt so maybe that's a factor, but don't let the PMI scare you it's often lower then quoted, Zillow and other sites were quoting $300-400.

[@djkenny1202]

Wife and I bought a home in 2012 with a 15 yr 2.75% interest rate. Then, mom in law gifted 150k inheritance toward another home with a second bath since we had 2 kids. We decided to go ahead and get the 30 yr on the second place because that’s the only way the bank would allow us to buy it based on income to Debt. 15 yr loan interest was barely a Point difference time around. We are keeping the first house and Renting it out for the mortgage payment. Our plan is to pay it off with Renters in 9 years, then we will start paying our new plane off faster with half or more of the rental income, paying an additional $1000+ a month instead of the $2150 only payment. Likely paying it off in 20 yrs when all is said and done instead of 30. It was hard to take the leap, I didn’t want to lose our first place since the loan was so awesome and we still love that place. I hope to have an income property as an older person and a paid off live in home, too within a decent rate of time. I still have people in real estate saying don’t pay off the home too early because you’ll lose the right off. I’m not convinced. But maybe the rental could be an exception had it had the longer loan? Not sure, but it is what it is.

[@OmerQuenneville]

In Canada buying and selling is too expensive to follow this advice. It just won't work

[@Buggu3]

Same in NYC.