Search results
Results From The WOW.Com Content Network
Following Dave Ramsey's advice will keep you from going bankrupt, but it won't get you into a house you can afford with the appropriate discipline. I don't want so much of my net worth tied up in my house. Ohio only protects $132000 on equity in BK, so I put my money into tax advantaged accounts and other things that make me happy.
Based on the Ramsey 25% on a 15-year rule, it’ll never happen with mortgage rates the way they are. The estimations to have a 25% take home pay that covers a house with those specs is almost insane. Mortgage: 450-480K Interest rate: 7.5% Term: 15 year Payment: ~3,500-3,900.
Have a decent income and budget and you too can be comfortable. If you think the current situation is so unique in history that one can spend more than they earn, then the answer is yes; Dave Ramsey is not for you. Luckily for me, I've had several friends from third-world countries and former-Soviet bloc locales.
yea dave ramsey's house requirements are pretty ridiculous. according to dave's requirements you need to make over $100k which puts you in the top 20% of earners in order to afford a $250k home with 20% down which even in relatively cheap areas is a 3 bedroom house with less than 2000 square feet. saying less than 20% of americans can afford to ...
House is on 15 yr note and is currently 27.5% of take home. (Had a kid, got a raise, but wife went part time. Started 21% take home). Option 1- Put the 10% towards BS6. Pay off mortgage 5 years 1 month early. Option 2-Put $0 towards BS6, invest the 10% in a taxable account instead. Currently we do option 2.
With a $100k down, with Dave’s parameters, it’s not much more than your current house value on a 15-year. A $250k mortgage (so a $350k house) puts a 15-year mortgage at $1,725/mo @ 3% since 25% of your take home pay = $1,850/mo. That doesn’t include property taxes and homeowners insurance.
Also would suggest a fund for appliances and furniture. We got lucky and the house came with all the appliances (previous owner passed away and the kids didn't want the old stuff) if the house didn't it would have gotten expensive real fast. Edit: also baby step 3b is for building a fund for a down payment of 20% not the whole thing.
Take home: $42,000 ($3,500 / mo) $9,000 to retirement (15% of gross) Take home - retirement: $33,000 ($2,750 / mo) For this fictitious family, that is $687 - $875/mo for housing, depending on if you wanted to apply the 25% rule to pre-retirement or post-retirement. Either way, thats not going to buy much of a house in most parts of the country.
But let's say our hypothetical home buyer doesn't have those things. 25% of monthly take-home income is $1,535. On a 15-year mortgage at 6.25%, this payment would support an initial loan value of ~$180,000. If Ramsey's rule is meant to include real estate taxes and insurance, then the loan value would be less.
wildcat12321. •. It isn't about being "outdated" Dave Ramsey's advice has alway been about minimizing your downside. So at 20% down and a 15 year payment, you build up enough equity fast that if you had to sell, you aren't underwater in most cases. And that is a function of budget not of market.