Dave Ramsey Breaks Down The Different Types Of Mortgages 

I have a finance degree and Dave legit just dropped like a whole semester of knowledge in this video

Buying a house is easy, but paying it all off takes discipline and determination. So, it is important to budget everything you spend once you purchase a house

I wish I could speak to this man for two hours.

So banks get all the upside but taxpayers get all the down side. Why does this sound familiar?

Listen, love Dave but I need to clarify something real quick on his point with funding fees on VA loans. Dave is correct when saying that Private Mortgage Insurance (PMI) for conventional loans and Funding Fees for VA loans are similar. They’re insurance policies on your mortgage in case you default. This helps the lender takes LESS of a risk. However, these loans are NOT fully guaranteed. Funding fees insure the loan up to 25%. Which is why many people have heard that they have $36,000 of entitlement for their VA loans. This is because 25% of $144k (VA standard purchase figure) is $36k. In other words, if you default on a home you bought for $144k (or less), the lender will be insured up to $36k, not 100%

His older material is so much better and more informative than the newer with all the personalities who just parrot what he says.

I disagree with VA loans being more expensive. There’s no private mortgage insurance, even if you obtain full financing. The only additional fee is the funding fee which they don’t even charge if you’re a disabled Veteran.

Wow, Dave thanks for sharing your thoughts and informations with us. Everyday I'm learning, also preparing myself before I get my dream home.🤔

That's not really correct. The VA loan almost always has lower interest rates than conventional especially if you look at the down payment. The VA is a no money down loan that a lot of veterans take advantage of. I know we shouldn't buy houses with no money but it's still a better option than conventional considering there is no PMI.

Dave Ramsey you're truly a wise man. I will contiune to keep learning from you.

I often wonder if a bank sells your mortgage , how mad would the next bank be if you suddenly paid off the entire loan balance immediately.

I have a traditional 15 year home 🏡 mortgage. I still want to pay it off before maturity by paying off before then.

Got to love this guy. I’ve learn soooo much watching this guy on youtube. These banks play dirty.

Glad I came across this video and all the feedback from veterans thanks from a young soldier SGT H

My wife and I are huge fans of yours! Thanks for your work.

The VA loan is a benefit less than 1% of the population earn the right to use. The foreclosure rate for VA loan is less than 2% . I have a rate of 2.75% on my VA loan and funded a fee of 3750. It is unwise to say it’s the most expensive way to buy a home.

Question - Being a force retired disabled Vet, I was told being 40% service connected I wont pay the VA Funding fee. Does that make the VA loan decent to get in that sense?

I don't even know that much about this but I know he's wrong. VA loans right now are half a percent plus lower than non-VA. where else are you going to find 2.25% non VA today? The funding fee can be as low as 1.4%, which is the only fee. No PMI on VA loans with zero down. Am I missing something here?

My mortgage was sold to a different bank before I even made the first payment 😂

I know I will probably be attacked for some weird reason but I think the VA home loan is the best. You don't HAVE to opt for 0% down, but you can do it if you choose to. With VA streamlining, veterans and military families can refinance existing VA loans to a lower rate or convert from adjustable to fixed-rate financing without a lot of paperwork or hassles. Additionally, no PMI payments. I can't imagine a vet taking out a conventional loan when a VA loan is available, but to each his own. They've worked great for my husband and I.

No matter the program, Conventional, FHA, VA etc, the fact of the matter is they are all better than paying rent. Rent is equivalent to a loan at 100% interest

Any USDA info? It sounds really good. I've been renting forever and finally decided to buy. Seems like Dave Ramsey's way isn't for everybody. Have a little savings and have a decent job but renting seems like money just being wasted. I have to ask my landlord for everything...can't have a dog.. can't paint how I want. Always need to remember a rental isn't my property. Buying will be mine and I know things will eventually break but that's what my savings is for... I hope I made the right decision :)

I'm so confused, my house is a VA loan...I'm not sure how getting the loan this way cost me more? Guess I have to see what fees were charged in my loan vs the fees that would have been charged in a different loan vehicle.

If I make my regular mortgage payment and I include another payment and designate in writing {For mortgage principal loan # _ _ _ _ only} will the full amount go toward the principal of the loan?

What about using an all in one loan to pay off your mortgage faster?

Great video! This is an important topic I go over my clients with when determining the best loan term for them.

I am so confused. I live in the Seattle area and the area I live in the average home price is $727,000 and the VA loan limit is $726,000 because I live in a high cost of living area. I always wondered if it is a benefit to purchase a home using the VA loan without putting anything down because that just means you have not paid any part of it off. My husband and I are both veterans and are looking at buying in a cheaper area (with the average home being around $400,000) but even that seems expensive. If we have a high enough income, say $10,000 net, is it worth it to purchase a home around $400,000 or $600,000 even? Using the VA loan or not?

Naca is the best loan. No PMI... low rates that are fixed.... no closing costs... no fees

What about usda

Hi Dave. What do you think about the BRRRR method to start a rental portfolio?

Why didn’t you mention a USDA loan?????

Great explanations! This was very insightful to learn as a first time buyer! Extremely informative ! Great use of examples to show the differences, definitely helped me understand.

If you’re a disabled vet there is no funding fee. Rates are usually less due to the guaranty as well

Lol countrywide. Haven't heard of them in a while.

Why dint he talk about the conventional loan? I think its better then all those loans.

Im 26. Came to USA 5 years ago with nothing. Got married at 24. Just bought a house with 20% down. No debt other than my mortgage. I would say get 15 years mortgage with 20% down or don’t buy a house now. Don’t stuck with big payment which you might not make a one day.

I'm confused, VA loans sell under the idea that you pay zero down, no mortgage insurance and lower rates, how could it be more expensive than a traditional loan?

How do you just know everything including the mortgage. I don’t know VA loan have a disadvantage of being chased by government. Sounds funny.

So you pay the funding fee and they still come after you if you default? Makes sense.

No fee for va loan if the vet is disabled.

How do I get on the calls?

Could you speak on land contracts?

Does anyone know if you also pay PMI for FHA Loan?

In the UK PPI was miss sold by banks. We have the ability to claim that cost back

Dude's bottom lip has not moved since he got that headset on that soccerball head of his.

!!! Should i buy a house if i am on a repayment plan with the IRS !!!

So if you put 20% Down payment do you not have to pay PMI?

Has anyone here done a usda loan?

Is conforming and conventional the same?

USDA loans are a good topic to speak about and his isn't fully right on the VA loan. He is right when it comes to some stuff and vets with a disability rating don't have to pay a funding fee. This is still a good video and hope he speaks about USDA loans

Why dont you talk about VA plus THDA loans? Are you aware of the benefits?

I think it would help people conceptualize this better if you wrote it on a board or something. It makes perfect sense to me though.

Don't forget PMI which ensures the FHA guarantor aka the fed gets there money bank.

I’m a regular customer with Luxuryhacks 🥰

Title should've been "Dave Ramsey talks about FHA and VA loans"...

I have a government backed mortgage. No PMI 🤗

What happens if you don't pay your VA deficiency? Can they take away your Social Security?

So confusing the best way is to save money for a simple home and buy it as cash better than let loans companies stealing money

Dave is completely wrong on this. Completely and it's a shame.

I am a veteran about to retire from my county job. I am planning to move out of CaliforniaI, because I want to buy a house. Obviously, I'm in my 60s. I raised my children on my own, and proud to say, I didn't rely on the government. My dream was to buy a house someday, but living in California I was not able to do it here and it is difficult to save money. Listening to this, makes me realize, mu dream will not come true. 😢

how should i buy a 1.5 million dollar house when i only make 13k a month

Can I get in contact with you about what to do on a bike

So if I have a conventional loan with 20% down, should my lender be charging me a funding fee in the origination charges?

Search Wacky Mortgage guy for advice on home owning

Expensive Very expensive Extortion. . There's the types of mortgages.

No down payment for a VA loan? You are not even covering the Realtor commissions. Talk about being underwater at closing.

Boy I wish I owned banks

His calls screener cherry-pick the callers

Why do you use people's name for types of mortgages. (.....i'm canadian by the way so a faney may mortgage sounds silly)

"Philosophically" was definitely the wrong word to use here.

Veterans Affairs...

Wow

Y’all come to Wacky Mortgage Guy

I'm not even 18 yet.

just pay cash ye bums

Bad look here Dave. A lot of bad info...

smaller government please just provide helps like smart money and things like this show to everyone and lower taxes to just 10% set and no more IRS please. Gov workers could get great truly productive jobs with the boost to the economy. get rid of social insecurity let it die off with all current players and make all workers take 15% income and put it in 401k IRA of peoples choosing. close the postal service if they cannot be profitable in 4 years. and put people to work for benefits. quit letting foreign countries undermine the poorest peoples incomes by flooding the country. and make all lottery money earned go to the neighborhoods that bought the tickets. 😉😊