Pay Off The House or Make Home Improvements? 

Unrelated, she seems so humble about their wealth, unlike some people who seem to just call to brag. She almost seemed hesitant to say how much they make.

The urgency of home improvements is oft overestimated.

Since they're "nice to haves" I'd probably do like them and split the issue. I'm imagining their house is probably pretty nice already and it's more of just changing it to their taste. We had to make this decision ourselves as well, and we ultimately went with the upgrades VS the mortgage. BUT, our mortgage is small (less than 90k) and we refinanced to get a lower rate (break even is about 3.5 years, and with the remodel, we will definitely be there longer than that). Our home was built in 1967 and we just needed an update. Everything was functional, but not great. For example, we had a 24" oven in the wall (smallest they make), but we have 3 kids and we wanted to be able to make more food. So we opened the entire thing up, put in an island, etc. Floors throughout the house. Paid cash for the entire thing. Still imagine I'll end up paying off the house early (probably just after the break even point, maybe slightly after). Along the way, I'm still maxing out 401k, and Roth IRA, plus putting into a brokerage and extra on the mortgage. So, that's what we did. Your mileage may vary.

Unless it’s a necessary repair/emergency, pay off the house first then cash flow the renovations.

Not sure I would buy a 1.2 million dollar home that needs improvements already.

$350K/year for a married couple becomes around $23K/month after federal taxes (the caller is in Nevada which has no state income tax). That million dollar mortgage is somewhere around $5000/month (including prop. tax). Where does the other $18K go if they have only have $2000-$5000/month available to throw at the house?

$350k/yr and still owes 1m? They love spending money

It's not your house until it's paid off.

Ugggh. Most folks who buy $1.2M+ homes don't have $1M mortgages. These guys are living like the $350K income/yr (party) will never end. Trust me - it will end, and the timing will be bad. That will force you to sell your home and move to a cheaper one. Keeping up with the Joneses is not sustainable. FYI, a 10 year plan to pay off a mortgage is called a "10 year mortgage". They obviously over-purchased. In 2008, Vegas real estate was hit really hard. One of the worst hit markets in the USA. Properties like this in Vegas lost half their value in 2008.

Having 2k-5K left over per month seems low with that kind of income.

PAY OFF HOUSE.

Dave: "SELL THE CAR!"

Pay off the house!!

I hate using the word "only", but they only have $2k - $5k left over each month, being debt free except the house, with a $350k + income? They either spend it almost as quickly as they get it, or their mortgage payment is through the roof! A $1M loan on a 15 year fixed 3.25% is $7k. And that doesn't include taxes and insurance. I think they bought too much home.

They bought too much house.

We owed $1M left on our home in January of 2021. Today the balance is $599K after the Jan1 payment.

Down size and pay off the house/renovate

Only 2-5k "Extra" on a 350k/yr income?!? What kind of lifestyle do you have???

I would do remodeling once the mortgage balance is about $700k. Two times your income is a comfortable ratio. Get it down and then do remodeling. Another reason to wait is once you are settled in the home certain details of the remodel will change. Just my two cents. Best of luck!

Sell the kids

I’m debt free Ohh wait … my mortgage is still a 1 MIL

Sounds like an awesome couple and of course, always great advice from the Ramsey team. I do think it's interesting that Shaquille O'Neal makes over 20 million a year and he bought a 650k house in Vegas a few years ago.

Pay off the house, 1 million in debt is crazy, even though they can afford it. A job loss, a downturn and boom.

2-5k left over each month…. That’s what I have on 128k/year. I wonder where there money goes. I suppose to a gigantic house payment. Maybe private schools? Does anybody know how much house Dave recommends based on income?

I love this everytime i have this question the answer is now on youtube thank you Dave and friends.

I cannot image buying a million dollar home and it needs improvements. Sigh.

100k a year over 10 years. Mortgage paid.

Sell the house buy a cheaper one

Until house is paid off only save for repairs, not improvements

You can do both at the same time.

Over 1 million in mortgage debt and one income household....goodluck with that.

So much humble brag with this one.

She said the her husband works hard. So that means she doesn't work at all.

A.million dollar house in California is nothing but vegas its got to be a big mansion style home same with Arizona . It's a status home plain and simple

Hope they are mid 30s .. If it’s 50s , not sure how bad it’s with a 1 million debt

Highly doubt they are on a 15 at less than 25%….

Husband works very hard aka she don't.

You still need “nice to haves” in a million dollar+ home!?

Sell your car! 😜

Struggle to take Rachel seriously.