We Bought WAY Too Much House! 

Dream house, dream truck, everything is a dream with this caller. You have to live in reality.

They make $125k a year combined and have a $577k mortgage? And he bought a “dream truck” on top of that? Congratulations, you played yourself.

This just makes me appreciate my 1000 square ft home even more. I like to travel and still put money in the bank. It just shows you bigger is not always better.

Trying to keep up with the Joneses always leaves you broke

Just no point of buying a big house unless you need the space. Otherwise, nobody cares about your big house. They’re not living or paying for it, you are.

As Rachel states so well, getting rid of debt, living below your means...reduces stress. I would add that it is unnecessary stress.

Says he likes to flip houses but yet he sells when he gets a tiny bit of equity and probably loses it to selling costs.

Basically he has his dream home his dream truck and still not happy. Take away? Material things do NOT give you happines.

He has no other debt. A little later, he mentions his $500 payment on his truck.........

Sounds like a nightmare house, not a dream house.

Our house was 900 SF when we bought. We have built on over the years and now it's 1300 SF. Raised a child and had many sleep overs, bday parties and still have cook outs for the neighbors, etc. Lots of outdoor space as well. Plenty of space for just my wife and me now. Easier to maintain and clean. So glad we did not buy that big house we were looking at. I would have hated it and would probably still be paying it off, but instead we paid this off in 17 years. Now we travel a lot and are away from home for stints at a time. We are retiring early in our 50s and will be out of country for months at a time. So no need for big house sitting empty.

This type of call is going to become more and more frequent, especially as we go into the recession!

Rachelle is so sweet and a comfort to listen too in this conversation. I believe Dave would have had the same advice but, Dave would have been just a bit more direct with this caller. God bless them all.

A bigger house means more upkeep expenses. No money to furnish. Higher heating and cooling costs.

Buyer's remorse.. its a real killer, especially with houses.

My mortgage is 50% of my take home. A 650 sq foot flat in London 😭😭😭

He thinks the house will go from $690K to $950 K in two years? Unless they're rebuilding the whole house, no way is he going to make that kind of money back that quickly.

Lol he bought a 680k home with a household income of 120k thats terrible. The bank knew they would go under

Crazy numbers. My single income is as much as they both make and I could never imagine buying such an expensive house.

Awesome that Rachel got to speak without being cut off for once.

This was a great answer! I'm usually less interested when Dave himself isn't there, but I thought both of them were helpful and nice to listen to.

Lol those numbers are not flipping numbers, these are regular appreciation with mild DIY updates. I recently bought a house for 82k put 90k into and sold it for 251k, that is flipping. Also sweet baby Jesus, owning a 850k house making 125k, that house owns them!

We own a large house, but we bought it when we had kids, and it's paid off. Now we can enjoy a bar and home theater in our rec room, a family room, and a living room. We did live in a too small home while we saved towards a larger one. Just. Get. It. Done.

Wait a second… they only make $125k per year and thought they could afford a $680k home!? My partner and I make over 200k, both have income producing duplexes, zero debt, paid for cars, 100k in the bank and we are concerned to buy at 400k right now. Insane how people come to these conclusions…

Three houses in that short time frame is tough...think of all the closing costs and relator fees..ugh

Dave would have ripped into him Rachel and Ken were a little nicer

"I bought my dream truck" "My truck payment is about $500 a month" These two sentences are contradictory.

Maybe if you sold it and bought a smaller house. Maybe that would work. 🤔

This guy spends money like a child

My parents did the same thing when I was still a kid... They had a new house built back in 2000 for 100k with me and my younger sister still in school. My two older brothers would occasionally live at home also. I was hungry many a times going to sleep after a dinner that was rationed out. Tuna "salad" and crackers was for dinner most of the time. And by "salad" I mean it was canned tuna mixed with chopped celery and mayonnaise. I don't eat canned or packaged tuna now as an adult because of my childhood.

125 per year buying a 700 k house is ridiculous Their dream home, their dream car Insanity

This didn’t age well. She said you can go get land and a house later.. and now interest rates and prices are insane.

I'd much rather have money to live with than living in a house where I can't do anything

It seems like all of Ramsey's callers problems begin with the sentence "We bought a house"

Awesome advice! He is going to be okay. He sounds like he is a responsible person.

“I wouldn’t send her back to work full time” Imagine if the roles were reversed and the husband was working part time. They’d be asking why he’s such a deadbeat and say he needs to get a job.

A much better would be to buy a much smaller house that they could easily afford with their budget, use the extra income towards investments and retirement and once the house appreciates in value and their investments grow, they can then sell the house for higher than when they got it and use the cash and some of their investments to upgrade to a bigger one in 10 years. It’s far better to buy a small house you can afford 2x over than a big house that you struggle to pay 💰

If you had to use 401k for a down payment??? Come on man!

Can't believe he confidently says the price of his house will rise next year. The asset bubble just burst buddy.

Dream properties are often financial nightmares. 🤦‍♂️

I can relate. My house is 49% of my take home $. I got the house in the divorce so it’s been a struggle. I opted for a number of short-term renters, when I can land one, over the past 18 months, and that took my payments down to 35%. I can breathe at that level.

Actually, their first home is more in line with their salary constraints. Hopefully, what he said about the values are correct and he will sell and come out of this with money in his pocket. I would go ahead and sell if that is what the goal is. Notwithstanding what Dave says, many areas are already seeing housing prices pull back. He may put more money into this house and never see the $900k+ price next Spring.

They must’ve put a small down payment and have a high interest rate because their income is $120k/yr, doing the math the mortgage should be like 3300 before the interest rate hikes.

Wow. The first caller really messed up 🤦🤦🤦. That home OWNS him and it's a nightmare now.

I guess saying 48% makes him feel better.

This is EXACTLY the call I needed to hear. Same income, same dumb car payment because "dream house" sucking us dry and taking all our time away from kiddos, blowing though savings and cant invest. Seriously considering "rightsizing"

Some that think they need to upgrade to a higher priced. I am glad mine has been paid off for 18 yrs. Keeping up with the Joneses don't impress me.

Wut...... 680K mortgage on 125k income!?

It's funny how people brag up their past home sales like they are so brilliant. It doesn't make a bit of difference now. Forgot about a dream truck debt? 🤣

Our combined household income is 3x theirs and we're STILL nervous about moving out of our $250k condo. Sheesh.

The house they bought in Fort Collins is probably quite modest at half a million home prices in that area are outrageous and have been skyrocketing over the last several years.

people don't get this, living below your mean, doens't always mean deadass broke. most of the times, you'd realise it's very livable and comfortable.

Mrs Cruz is a most worthy Voice to carry on her PROUD PARENTS Legacy in the Financial coaching industry

Dude, if it's their dream house then wouldn't the $500/month gone from selling truck, then a little extra work from the wife perhaps free up enough to not be sinking with no other debt?

When we purchased our second home 26 years ago, we bought the cheapest model in a new development, to us it was our DREAM HOME, cause we could afford it, fast forward to now, we paid it off last year. 😊

Rachel’s face when he said he pulled his 401k lol

Having a huge home that is way too much is our parents dream. I am very happy living in a reasonable home with little stress and able to do all the little things

How can you NOT buy too much house in this market? I can barely afford a shack in the ghetto.

If the wife isn’t sitting home with kids she could get a full time job and easily double her salary. They could sell the truck and the house and really build wealth

No one wants to go at the speed of cash...until they get in over their heads.

He still owes $33k on a 3 year old truck; what did it cost new? What was the duration of the loan?

My wife and I make 185,000 a year and live in a 1200 square-foot house that we bought for 335k lol

“Dream truck” “dream house” these phrases are a justification for spending more than they can afford.

I wonder what his wife did for a living or if she had any other previous job experience. If they were able to increase her pay to something like $60k-$65k, they could hold onto the house.

Recent Ramsey fan here and moving to Fort Collins this weekend… oh boy.

Can we just take a few moments to appreciate Rachel’s beauty. Geeeez

He got off easy! Don’t be afraid to bring the shame.

An arrow has to be pulled back in order to launch forward!

120k is not much income for Fort Collins as a family. Definitely a good call to downsize.

That thumbnail though! Wow

A dream house and a dream truck....LOL

Home values r going down and interest rates r going up.... it is a pipe dream that the house will be worth more.

People like this is why housing is so expensive.

If they can clear $200k selling the house, that’s the answer. Sell the house, and get into something more affordable

What? You will not get 850k for that next year. have you not hear that house prices are falling, not rising?

Amazing I have a household income of $180k and I feel like the $260k house I have is too much lol

Dude could make 300k-400k on the house, has 10k over on the truck. Could sell both, buy a car in cash and probably buy the house in cash or better yet, put it all in his 401k and literally have a reset and probably end up ahead

Real estate is an asset, this guy isn't doing as bad as he thinks

Lol come on man said he just has 3k in debt and then mentions he owes 33k on a truck…. I would sell the truck before the house man… thing is probably chugging gas…. his house payment is fine. Also what happened to all the other profit from the houses that money just disappear or something..

Territory Sales Manager? What's that even mean?

Bought a 1 million short sale in 2015 put 200k down. Homes worth > 2mm now but scary the bills that comes with that home. Looking to downsize.

It is funny that we all call in but we know exactly what they are going to tell us, sell everything that is in debt and get out of debt....sooooo insightful lol

She said s*it and then corrected herself. Lol. 🤣😂🤣

The kids are 4,8 and 10. School age. She needs to bring in a extra 1,000 a month....he needs to doordash 500 a month (125 a week,.super easy) and keep everything. You all aren't working hard enough!

I make a decent amount of money…no way I’d buy a $600k house

People be sounding so goofy when they in serious debt these calls are hilarious 😭😭😭

$680k house making $125k. A little crazy. Years ago, We were making about $280k and I was not happy with wife when she chose a $335k house to buy. A House is typically expensive to keep up, so it can easily become a major burden on someone family’s budget.

Very good advice guys !

Great advice. Best thing is to sell, sell the home and truck.

Im 38% in mortgage from my take home pay. 3500 sq ft house. Sacrificed and live in cold Wisconsin.

Rachel looks more elegant with her hair up

When you have a young family you don't need land, you need a neighborhood. (Unless you are a farmer.) Stop with the big mortgages.

More people need to pay attention to the hedonic treadmill. It is what has stopped us from buying a new home every time we come close. I’ve done a few videos about it on my channel.

Why is it most people call after they make a bonehead move ?

If they want to keep the house, His wife needs to work too. $20,000 a year is not enough for them.

In general, house prices are decreasing, so he may not make the money he is expecting if he sells his current house.

I only make $40K a year and bought a $600K house. My payments are $2.5K per month. When I sell it at retirement for over $2M, I will be an instant millionaire.

A lot of people bought a house too big or cost too much because they didn't want to miss out.

He’s the problem. He’s a spender.

I wish Dave would have taken this call and ripped them a new one for being so stupid and making an excuse to buy a home that’s 50% of their income 😂😂