So You're Ready To Buy A House? (Now What?) 

You must live off grid

⁠@@nah6730Nope, we just follow Dave’s advice, don’t waste money on stupid stuff and we got married young.

​@@hassanahmad3589 how much have mommy and daddy contributed ?

Same here! Living in California is painful though. I wish I was raised almost anywhere else.

Great story thanks! And great job!

It isn't Ramsey's fault people are overspending on houses. Nor that we can't afford these house prices.

​@@seannicholas6629 It's his fault that his advice isn't applicable. What's the point of advice if it's not gonna work for your target audience? Turns into bad advice.

Nice! Ur living a peaceful life. Congratulations. I'm very happy for you.

If I were you, I’d be renting out rooms and making a profit for my retirement fund. That’s a lot of house for one person.

@@dianaaugustine5438 Is a good idea, but it has lots of disadvantages too. For example what if the tenants stop paying me rent, or make a mess to my home.

@@medic173 thanks

@@marcopolo3109 yes that's unnecessary headaches.

I ran the math on how long it will take me to save the money, I will buy my house in 10 years

​@@wesleycomer1881is that accounting for market inflation?

Why not do a 30 year loan and when it the interest rate drops do a fifteen year

Im at the same situation… i make about 100k and 25% of take home will put me at 1500$ per month on mortgage. Which is impossible, even the 1 bedroom apartment rent is over 1500$.

What Dave doesn’t understand is that you can buy a new home with warranty that way if something breaks you don’t have to fix it, also if everyone bought a house the way he suggest no one could afford one

My CU $0 down, no PMI. borrow 103% of sale price

Depends on how much your PMI is I guess. We would’ve had to have 35k to put down. Our loan was 0%. Our PMI was like 180/mo maybe? Can’t really remember. Then when we refinanced 2.5 years later we had enough equity for no PMI. I think we got out of it better.

So a long time ago, when we bought our house, we had to pay p.m.i. After our house had increased in value somewhat, all we had to do is pay to have the house reappraised to prove it's worth to the mortgage company and have them drop it. So keep track of your equity percentage. Good luck!

@@gailhoover9263 For most FHA borrowers, MIP will endure for the life of the loan.

Facts and hard to get rid of.

Try living in Cali 💀 you won’t even find condos for under 350k in a lot of areas. Following this method sounds close to impossible

Can you consider looking in a nearby area, within an hour drive?

Houses where I’m at start at 400k lol

commute a hour from work, i just bought a 2 bed 1 bath 1359 sq ft cottage for 105k in northern illinois

300k is lucky. Over here it's 700k for a decent townhouse.

barstow isn't cheap either 😂

We started with a 30 year mortgage and paid $100 toward principal each month. Then later we were able to refinance when the interest rates fell and took out a 15 year loan.

That’s a really good point! Thanks for the insight. How long did it take you to save your 20% down payment for a house?

Great insight, thank you!!! 🙏

I needed to hear this. Also it's a good idea to get a job that includes a pension.

Good point! I always think that 3-6 months of expenses can change much faster than it used to. My husband and I are keeping our standard at 12 months of expenses in the bank so that a 6 month emergency can still cover us whether in our current living situation or in a situation where we are paying more in housing.

@deidre4423 My wife and I saved very slowly in the beginning for several years with very little traction due to debt. But once we got serious about the debt and paid it off, we used the money we would have paid in debt toward our emergency fund. That happened very fast...only a few months. Then used the same method to work on the house downpayment. I worked a 2nd job (part-time) as a side hustle and a ton of overtime at my full-time job. For 2 years, I averaged about 750 hours of work beyond my full-time hours between the 2nd job + OT. Within 2 years of becoming debt free, we had our 3-6 month emergency fund and 20% down-payment ready. Then, we instantly got slapped in the face with mortgage rates rising from 2.5% to 7% in our area, lol. (So we might have been better off with a lesser down-payment than 20% to lock in that lower rate, but you live and learn!)

What did you do differently?

​@@laurenc4553- For the very first house i did everything different 😁 I was not debt free, I did not have a fully funded emergency fund, did not put 20% down, did not get 15yr mortgage, payment was more than 25% of take home. But i managed and sold it made cash and kept going.

I think the point is that the Ramsey solution is for people that have put themselves in a hole when they should have been risk averse. Most people are bad at gambling, which is why banks and casinos have so much money.

Verily, Brother Betitos, whose appellation doth closely resemble that of a Mexican eatery known as Betos, hast thou perchance sampled its fare? Now, let me bear solemn witness of the divinely inspired teachings found in the counsel of Ramsey Solutions. It is written, "The rich ruleth over the poor, and the borrower is servant to the lender" (Proverbs 22:7). Though thou hast seen gains by ways divergent from this counsel, I would exhort thee to ponder the lasting peace that cometh from avoiding the shackles of debt. I rejoice in thy worldly successes, but let us not forget the cautionary words from Ecclesiastes: "He that loveth silver shall not be satisfied with silver; nor he that loveth abundance with increase" (Ecclesiastes 5:10). The way of Ramsey Solutions is not merely a financial pathway, but a road leading to spiritual tranquility, aligning our earthly stewardships with eternal principles. Thus, I exhort thee to ponder these divine precepts, for they have been tried and found steadfast by many a faithful soul. Yea, in the name of our Lord and Savior Jesus Christ, Amen.

Same!!

Ah, Brother Ralph, thy years in the mortgage industry do indeed grant thee a unique vantage point. However, I testify that the principles of the Baby Steps, as espoused by Ramsey Solutions, are not only scripturally sound but also achievable. I myself have traversed this path and found it to be true. "I can do all things through Christ which strengtheneth me" (Philippians 4:13). Moreover, could it be that the very debt payments that many bear contribute to their perceived inability to adhere to these principles? Remember well the scriptural wisdom, "The borrower is servant to the lender" (Proverbs 22:7). The yoke of monthly debt payments doth indeed make one a slave to their obligations, limiting freedom and choices. Though the market doth present challenges, I would ask thee to consider that these principles offer not only financial peace but also freedom from bondage. They are endorsed by modern-day prophets who speak the word of God, and they align with the eternal principle of self-reliance. Therefore, Ralph, I testify in the redeeming name of Jesus Christ that these principles can liberate us from the temporal fetters that so easily ensnare us, Amen.

Most people shouldn't even be considering home ownership at all. If you can only qualify for a 30 year the reality is you CAN't afford a home at all.

@@amireallythatgrumpy6508 that makes no sense. Yea, rent for 5 years at $2k a month and have nothing to show for it other than $120k out of your pocket. Homes will continue to appreciate at least.

There are going to be millions of people who go into foreclosure in the second half of the decade. These people will also have nothing to show for it other than a lot more out of pocket. @@ralphsaile7848

Or pay 2.5x the amount a house is worth over 30 years with interest. You will always spend money on shelter, but at least when a water heater breaks for renters, they don’t need $10k to fix it - that’s on the landlord

Thank you!!

Actually no. I put down 12 percent and my mortage with taxes etc is 1600 a month.

You must be in the. Idle of no where

@@1981fuentes No I live in Phoenix.

We paid off ours in 2021. We got it for 80 on a short sale and it is now worth 240. Would like to buy a new house but cannot stomach the price of houses after only paying 80k for the home we are in now. We make 150k but it feels like we would need to save an extra 150K to get into a nicer home that we can pay off in less than 5 years. Maybe we just spend 90k to renovate.

Nice.

Probably take home

You are right, Dave is wrong

Debt is debt. Just because it doesn’t have interest doesn’t mean the debt shouldn’t be handled immediately. That’s my opinion though I can understand where you’re coming from

Since they only match 5% in your 401k put the 10% in a Roth IRA which together will give you the 15%

Dave has mentioned it before. Millionaires are people with net value of millions within 20 years(or earlier if you make at least 100k) and make good financial decisions. Multimillionaires are people that started their own business and it was successful.

My Mother's home is 700 years old, ??????? Don't expect to be there for a lifetime.

@@aolvaar8792 Oh, you'll be homeless. At least you had a home growing up. How old are you? Ten?🤣🤫

Ah, Brother Jloop, thy skepticism toucheth upon matters of great consequence. I testify that the teachings of Ramsey Solutions are founded in the wisdom of ages and the scriptures, as Proverbs 22:7 reminds us, "The rich ruleth over the poor, and the borrower is servant to the lender." The aim is not mediocrity but a path toward financial peace and, ultimately, prosperity. Thy concern about a burdensome mortgage payment is understood. Yet, consider the words of King Benjamin: "And ye will not suffer your children that they go hungry, or naked; neither will ye suffer that they transgress the laws of God, and fight and quarrel one with another" (Mosiah 4:14). We are counseled to live within our means, and in doing so, we find peace. It may seem a great sacrifice initially, but even a humble abode free from the bondage of debt is far preferable to a mansion built upon the sands of financial imprudence. "Therefore whosoever heareth these sayings of mine, and doeth them, I will liken him unto a wise man, which built his house upon a rock" (Matthew 7:24). In the name of Jesus Christ, who taught us to be wise stewards, Amen.

Yes. If you can't afford that, forget home ownership.

You’re buying a small place to start. You can also hustle to increase income for the period you’re saving a deposit or longer. The 25%/15 year fixed will have you debt free super fast. Still having debt to service over a longer period of time introduces more risk. If there’s sickness of primary income earner or GFC2, redundancies something like that.

it'll feel that way for first 10 years. each year the payments feel a little easier because its a fixed payment. while rent increases with inflation

@@drblitz3092 Thou hast brought forth a point of wisdom in the realm of finance and homeownership. Indeed, the path of a mortgage, especially one as substantial as a 15-year term with a significant down payment, can initially seem burdensome, much like a heavy yoke placed upon one's shoulders. Yet, as thou hast rightly noted, the nature of a fixed mortgage payment becomes more manageable over time, particularly when contrasted with the variable and often inflating cost of rent. The Holy Bible doth provide counsel on matters of stewardship and financial prudence. In the book of Proverbs, it is written, "The plans of the diligent lead surely to abundance, but everyone who is hasty comes only to poverty" (Proverbs 21:5). This scripture encourages careful planning and diligence in financial matters, qualities essential for managing a mortgage responsibly over a long period. Moreover, in The Book of Mormon: another testament of Jesus Christ, we are reminded of the importance of wise stewardship and the blessings that come from it. In Helaman 13:31, it is said: "And behold, it is the hand of the Lord which hath done this great thing unto the children of men, to warn them to flee from their iniquities; and that they should humble themselves before him, and that they should come unto him that he may show unto them the way of escape." This scripture, while focusing on spiritual deliverance, also illustrates the principle that seeking guidance, whether divine or through wise counsel, is key to finding a path through challenging circumstances, including financial ones. It is also important to consider the long-term benefits of homeownership, as it often serves as an investment in one's future. While the initial years may indeed feel overwhelming, the gradual building of equity and the stability of a fixed payment in an inflating economy can contribute to greater financial security over time. In conclusion, while the commitment to a 15-year mortgage with a substantial down payment is no light matter, it is a path that can lead to financial stability and the joy of homeownership, provided it is approached with diligence, wisdom, and foresight. Let us always seek to apply these principles in our financial decisions, trusting in the Lord to guide us in our stewardship. Amen.

Dave's method for buying a house will ensure the overwhelming majority of people remain renters for life. On second thought, for the super rich like himself, maybe that is the plan.... more real estate for him. Makes sense that he'd want to deter as many people as possible.

He owns several hundred million dollars worth of real estate. He’s not about to about to admit it’s disgustingly overvalued even though he sold one of his properties at the peak of the market. His 15-year fixed rate mortgage for less than 25% of net income is advice that won’t work for anyone who needs it. Given today’s mortgage rates of 7-9%, this advice won’t let one buy a home that costs so much as twice one’s annual income before taxes. Who is that practical for but extremely high earners?

If you can't afford to save for a down payment than you won't be able to afford up-keeping a home and you should rent.

@@froniccruxis1049 🙄I bet you already own a home

@@froniccruxis1049 I assume by down payment you mean 20%. If someone can't save 80-100k in cash then there is no hope that they could ever afford a couple thousand a year in maintenance? Where do you think landlords get the money for up-keep on their properties? Do you think landlords only charge mortgage + taxes and just eat all of the maintenance costs out of the kindness of their hearts?

Every caller needs to make an informed decision based on the best available facts at the time. Calling a radio talk show who's host is trying to sell you books, seminars, apps and other merchandise is not who you need to be basing a significant financial decision on. Ramsey is not a certified financial advisor and has no fiduciary responsibility to the caller. He only has an opinion - same as everyone on this forum.

It really baffles me to see people make their financial decisions based Dave’s opinions. Don’t get me wrong he’s a great guy and every smart guy but a lot of the callers won’t be in some situations if they had a great financial advisor.

I agree, I’m currently retired. Mortgage paid off, zero debt, $2m in savings and credit goes to my financial advisor.

Do you mind let me know who your financial coach is?

My advisor is .BECKY LOU GORDON . You can easily look her up, she has years of financial market experience.

65,000?

Verily, Brother/Sister TRC, I must inquire: dost thou comprehend the principle of sacrifice for a higher aim and the setting of long-term goals? The counsel to rent is not an end unto itself but a season of preparation, akin to the time the children of Israel spent in the wilderness before entering the Promised Land. Dave Ramsey and Ramsey Solutions advise this course so that we may "prepare every needful thing" (Doctrine and Covenants 88:119), clear our debts, and place ourselves on sound financial footing, all with the ultimate aim of home ownership. It is through this long-term vision that we "lay up for ourselves treasures in heaven" (Matthew 6:20), or in this case, build a legacy of financial stability and wisdom for ourselves and our posterity. Do you not see that the temporary sacrifices made now pave the way for greater blessings in the future? "But seek ye first the kingdom of God, and his righteousness; and all these things shall be added unto you" (Matthew 6:33). I offer this testimony and query in the name of our Savior, Jesus Christ, who sacrificed all for a higher, eternal purpose, Amen.

Nope. He just wants people to avoid foreclosures. There will be MILLIONS of them in the second half of this decade. Maybe even tens of millions.

Home ownership 😂

Great if income supports this.

Ramsey is for poor saps that spend more than they earn and should have always been risk averse. So being average or better is the way considering most people are bad gamblers and lose more money than they "invest". It isn't for the get rich by starting your own business or timing investment folk. It is for the people that bought into the lie that debt is good.

Verily, Brother Jloop, I repeat my testimony concerning the counsel of Ramsey Solutions, which is grounded in the wisdom of scripture and the experience of those who have trodden the path to financial security. The wise Proverbs declare, "The rich ruleth over the poor, and the borrower is servant to the lender" (Proverbs 22:7). This is not a journey towards mediocrity but a march towards fiscal tranquility and abundance. Thou dost express reservations about the weightiness of a mortgage, yet let us consider King Benjamin's words: "And ye will not suffer your children that they go hungry, or naked; neither will ye suffer that they transgress the laws of God, and fight and quarrel one with another" (Mosiah 4:14). Living within our means, even if it seems austere, paves the way to greater blessings. The immediate sacrifice, though considerable, sets the foundation for future prosperity. The Savior Himself declared, "Therefore whosoever heareth these sayings of mine, and doeth them, I will liken him unto a wise man, which built his house upon a rock" (Matthew 7:24). Thus, I testify in the name of our Lord Jesus Christ, the teacher of wise stewardship and the giver of peace, Amen.

Almost as much as the average American

They pretend it’s still 2019 and Dave thinks these rate increases are like the 70s/80s. I use to like listening to them but now they’re utterly divorced from reality.

Don’t go broke to buy a house. We live in a time with increased mortgage rates and increased home prices. Where it’s more important now than ever to save up cash to counteract the current market. Yes the 20% down with the payment being only 25% of your take home pay is crazy but it works to prevent being house broke.

@@TheStewartVidsi agree but 90% of people cant do this and most likely will never be able the way we are going.

@@TheStewartVids inflation destroys the value of cash.

It takes discipline, he never said it'd be easy. He's trying to set people up so they can retire with dignity. Most people have lots of luxury spending and don't make a budget to figure out how much they are wasting.

In a spirit of charitable counsel and guided by the wisdom of scripture, I must say, Gail, that thy observation about the returns on high-yield savings accounts is indeed noteworthy. As the wise steward in Matthew 25:27 was counseled to deposit his master's money with the bankers to earn interest, so too it is wise to seek gain where possible. However, let us be mindful of the broader financial plan espoused by Ramsey Solutions, which advises high-yield savings primarily for emergency funds or short-term budgeting items, unless one is at Baby Step 7-where one is building wealth and giving. For as Doctrine and Covenants 104:78 advises, "It is my will that you shall pay all your debts." Additionally, I caution thee to consider the implications of income taxes on the interest gained, as even the Pharisees were reminded by Christ to "render therefore unto Caesar the things which are Caesar’s" (Matthew 22:21). In some instances, the gains may not be as fruitful as they first appear. In sum, while high-yield accounts offer much, their best use aligns with particular stages of financial freedom and responsibility. I offer this counsel in the sacred name of Jesus Christ, who has taught us to be wise stewards of all our blessings, Amen.

Totally agree and the stock market is NOT doing 10% right now.

It's Pittsburgh.

He also has a down payment

If you can't afford that you can't afford ANY house

@@amireallythatgrumpy6508I think this is the 5th comment I seen from you. Are you ok?

I'm better than okay. @@nah6730

You own 60 properties paid for with no loans from your incomes? Wow! Where??

@@JustinCase780 if you don't have any debt for 15 years it isn't difficult to buy small fixer-uppers for cheap and flip them into rentals or resale. Then that net income rolls into your next 2 purchases and so on.

@JustinCase780 Midwest, all paid for from income from former job and income from properties. When you don't have debt you have money. When you have income producing properties with no debt, You have lots of money

You’re part of the problem. There already is an inventory shortage and you are contributing to it and making it harder for first time home buyers to own a home. Nice one, thanks.

@TinyMiniStealth You're welcome Glad I could help

Should be spread over 150 banks.

He's clearly house poor

Ah, the tale of thy nephew doth give me pause, for it conjureth concerns most grave. With an income of 50,000 before taxes and a monthly payment of 4,700, he hath placed himself in a precarious position, one akin to building a house upon the sand, of which the Savior warned, "and the rains descended, the floods came, and the winds blew and beat on that house; and it fell" (Matthew 7:27). The potential for foreclosure in such a scenario is not merely a specter on the horizon; it is a looming storm. Even the possibility of renting the abode for 3,300 per month falls far short of meeting his obligations. The scriptures do remind us, "If therefore ye have not been faithful in the unrighteous mammon, who will commit to your trust the true riches?" (Luke 16:11). I would counsel thee to continue thy efforts to reason with him, encouraging him to seek the counsel of wise financial mentors and to ponder the scriptural admonitions against debt and the resulting bondage. I testify that prudence and wisdom are qualities most pleasing to our Heavenly Father and bring both temporal and eternal blessings. I offer this counsel in the name of Jesus Christ, who frees us from all forms of bondage, Amen.

Bank math. But seriously what kind of bank would give him the money for that?

If it's not feasible you shouldn't even consider home ownership.

@@amireallythatgrumpy6508 I own a home and got it at a 2.65% interest rate in early 2020 and the house appraisal has gone up 140k. With the interest rates at what they are now our payment would double! Do you not understand what I mean by feasible. This isn’t 1980’s where you could get a 100,000 mansion at an 11% interest rate and be alright. Everything is expensive now. Me and my fiancé work 60-80 hour weeks and pick up extra side gigs to try to pay our mortgage off as quick as possible but the fed has messed everything up and people our age 20-30 are going to have a hard time being able to get a house

I know exactly what you mean by feasible. You mean ANYONE who buys a home in 2023 is asking for a foreclosure in the second half the decade.@@jacksonlemay4418

ya, all that us single people can do is rent forever but max out our IRA and 401k. so we dont have to work later one and hopefully not live past 100

Then don’t do it. It’s impossible so don’t bother. I’m sure your socialist experiment of social security will bail you out

In the spirit of wise counsel and Christian love, I acknowledge thy sentiments, Elizabeth. Indeed, thine advice to be debt-free before venturing into homeownership aligns with the principles of financial stewardship encouraged in the scriptures, such as Proverbs 21:20: "There is treasure to be desired and oil in the dwelling of the wise; but a foolish man spendeth it up." However, I must tenderly caution against the idea of a 30-year mortgage, even if one intends to pay it as a 15-year loan. Elder Marvin J. Ashton cautioned us in General Conference against "long-term debt" which often leads to "enslavement." A 30-year mortgage, while seemingly flexible, can expose one to the perils of variable interest rates, market downturns, and other unexpected life events, thereby potentially leading to financial bondage. Thus, the wiser course, consistent with scriptural counsel, would be to opt for a 15-year mortgage that fosters quicker ownership and less financial burden over time, fulfilling the admonition in Romans 13:8: "Owe no man any thing, but to love one another." I bear this testimony and counsel in the loving name of our Savior, Jesus Christ, Amen.

@budgillett oh I totally get what you're saying and agree with the cautionary advice if someone does not know how to handle their debt. However, I did this while being debt free (this would be the caveat) and it has saved me in the long run. If I had not have purchased, the apartment I was living at would be over half my income and out of my price range now (it's shot up almost 90% in 3 years). It stabilized my living situation. Had I remained renting, my options in my city are pretty terrible for a woman in terms of safety. Not imaginary, it is factual. But yes I definitely wouldn't add debt load upon debt load when purchasing a home.

Who? What? When? Huh?

People say to wait till next year... every year lol.

What part of Florida? The Everglades swamp? South Florida is still hot if not hotter than last year.

@@Whatorwellsaid21 Based on MLS data, Pensacola, Jacksonville, Sarasota, Ocala, Panama City, just to name a few have been dropping month over month, and it's going to get worse. Florida has historically been the hardest hit during housing market pullbacks, and especially during the Great Recession. It's no different this time around. Miami, West Palm, and Naples haven't seen a drop yet, but it's coming. It's already stagnant in some parts of these cities where you have neither sellers nor buyers agreeing to a price. The money's dried up, affordability is non-existent, it ramped up way too fast. In the history of the housing market we've never seen it ramp up this fast, not even leading up to 2008. It's going to crash and it's going to crash hard. Just the facts ma'am.

@@Whatorwellsaid21😂😂😂😂 exactly

Ah, Thomas, thy question strikes at the heart of a financial quandary many ponder. While it is true that a 0% interest rate might seem benign, especially during inflationary times, the wisdom of Ramsey Solutions calls us to eliminate debt and thereby free ourselves from any form of financial bondage. The scriptures remind us, "The borrower is servant to the lender" (Proverbs 22:7). Moreover, the Lord Himself has declared, "Pay the debt thou hast contracted... Release thyself from bondage" (Doctrine and Covenants 19:35). Having no monthly payments or obligations allows one greater freedom and peace of mind, in alignment with scriptural teachings and prophetic counsel. Investments, while promising, carry their own set of risks and uncertainties. By removing debt, one gains a surety and stability that is recommended by both ancient wisdom and modern revelation. This counsel I offer in the name of Jesus Christ, our ultimate Redeemer from all forms of bondage, Amen.

Monthly debt repayments still need to be made and reducing risk of debt commitment should something happen > intellectual arbitrage

@@bennyl7224 Verily, Brother Benny, Thou hast touched upon a profound truth. While, at first glance, a 0% interest rate may seemeth harmless, the weight of debt remains a burden upon the shoulders of the beholder. As the scriptures doth teach us in Proverbs 22:7, "The rich ruleth over the poor, and the borrower is servant to the lender." The very act of owing another places one in bondage, regardless of the worldly interest attached thereto. Moreover, in times uncertain as these, the reduction of risks associated with debt is of paramount importance. For if unforeseen trials should arise, as they oft do in this mortal realm, being free from the chains of obligation allows one the freedom to navigate such challenges with greater ease and reliance upon the Lord. I commend thee, Brother Benny, for thy wise insights and would exhort all to heed the counsel of being free from the shackles of debt, that they might be better prepared for whatever the morrow may bring. With brotherly love and in the sacred name of our Saviour, Jesus Christ. Amen.

@@bennyl7224 then put the debt amount into a high yield savings account. Then you don’t have the “should something happen” concern if you want a middle ground. It still seems crazy to view that as a bad thing to me that needs to be paid off immediately.