Should I Pay Off My House Or Upgrade It? 

Got a raise and decided to spend the difference on interest 💀

Rent until you can make this work. If you cannot make this work, you do not buy.

@@tuckercase2449 For a very large down payment I take it? Harder than you’d think when considering how much home values appreciate. They could be rising in value faster than you can save for the down payment needed to make a 15 year mortgage work while still less than 25% of your take home. For vast majority of average Americans, it is just not feasible. Point being, this 15 year mortgage and under 25% of take home now just looks silly.

Totally impossible! I love them and they helped me get out of debt fast but I wish they would be more practical with their advice on housing.

@@mccq5913 I think they know it's impractical. Dave seems to not want to be flexible with his advice because people will say his rules are flexible and start doing whatever plan they want. Dave likes his advice to be strict so people follow it but it's true it's outdated.

I agree. The house will be your greatest asset and likely to appreciate in value. You can always refinance in a few years to a 15 year loan if/ when you are in a better financial shape

Nobody needs a changing table or half the stuff ppl buy for newborns

@@reese85 you must not have any kids?

@@westonr4359 ah yes. I wonder how humans lived for eons without a changing table

@RU-vidr007 good for you

Plus bigger house means more room to buy bigger SUVs, furniture and other stuff.

​@@jeretsolol doesn't mean you have to buy those things

@RL1988 i was until i found Dave 😊

Right and all the other stuff. Welp new home I need to buy a new couch, new tv, new bar, new bla bla bla bla bla. I can already see it.

And a 15 year mortgage too. Sadly he’s out of touch with reality in this aspect

I've been in my house going on 12 years and have always been at 30%. Same house if I was buying today would easily be 65-75% of my take home if not more

The biggest concept is the idea of making the correct decision at the correct time. That might mean someone can't afford a house in their position at the moment and need to save up. It might mean needing a roommate. It might just mean accepting that a move is needed to a cheaper area or that a smaller house fits the bill. As long as the decision furthers your goals long-term, it's a more correct decision. My wife and I have always bought smaller homes than our peers - by quite a bit, actually. And we've stayed in those homes instead of moving every couple years. Hitting the 1/4 take-home pay is not difficult if you don't scale your life expenses up with your pay and you buy what's actually in your range.

@@rhaythe I agree that under 25% of take home is feasible, just not with a 15 year mortgage. I just don’t see how both requirements are feasible with the average income and the average home price. In these cases, to meet both requirements, it’s simply impossible; the math just doesn’t work out as you’d be asking people to find homes that don’t exist at the prices allowed by restricting oneself to both 15 year mortgage AND under 25% take home.

@@wachinstuf At some point, the average person needs a metric to judge a good versus bad decision. The 25%/15-year metric is that yard stick. Get as close as you can. I take issue with the idea that the math doesn't work out. Save up a big enough down payment, and it always works out. But Americans are impulsive and impatient, so yes, most will go 30 year and ignore the yard stick.

That should be a standard question for callers who are married. “What does your spouse think?” 🤔

Women will twist their logic in order to justify spending more money. Every husband has to deal with this nonsense.

If i was to go back in time I wouldn't waste money in college, if your lucky enough to still live at home and work flat out from 18 to 25 you can wrack up a mountain of money for that first down payment plus no student loan. A lot of companies run boot camps and internships these days for 18 year olds that will let young people study for college part time and often they will pay for it. Unless your studying medicine I don't see the point of college at all.

Double income? Idk.

just live in your car or a tent. gotta sacrifice bro

Save money for 10 years or make $180k or above. On top of buying a cheap house in your area

I mean you literally don’t lol

Have you sold so many kids the stuff thinks it's next?

@@johnadams3418 Dave

Good call. Now you can use the truck to drive to the store for more rice and beans.

Dave, man. Where's that curly hair broad you had on the show yesterday?

Boe jiden

the payment lol

Especially with this high inflation if you got a good rate!

🤣🤣 I grew up with 2 parents, 6 kids, 3 bedrooms and 1 bathroom AND we all survived 🤣🤣

Florida houses usually don’t have basements

Townhouse probably can't add addition

Kids or not! With the right income you can still invest the same

And I what’s the point of someone with no kids investing, cuz when you die! Where is that money goin?

@@reese85 Charity? Or just enjoy all the money before I die?

@@reesercliff you wouldn’t give it to your sisters kids or a close friend kids or something like that?

@@reese85 possibly depends on how well they grew up,

She can always refinance.

LOL, that is not a real thing.

Studies that include actual people? Or studies that only include assumptions and math?

@@peterrose5373 Do the math youself.

By which I assume you mean "yes. it's ivory tower theory, and ignores the effects of both human behavior and variable luck. "

Or a loft is nice.

Townhouse so probably can't add

Actually no, the faster you pay off the house, the faster youre done with debt. And once youre done with debt You will build wealth faster because your monthly payments will be going to your savings

@@unfairsanic5089or you can just make more money and do both 🤷🏽‍♂️

@@unfairsanic5089cuz most ppl who call up don’t have expensive house payments! They be less than 2k

@@reese85 the problem is that most callers dosent want to switch their jobs or add another one just to make more money

It will if you want to enjoy life when you're older

They live in a town house do they sound rich to you lol