Comments on: Is Dave Ramsey Right About How Much House You Can Afford?

By: Johnny

Johnny — Tue, 15 Nov 2022 07:21:16 +0000

Thanks for your input. The issue I have is that not all places can be created equal. I have a six-figure income but had to pay nearly $400,000 for a duplex. That put me near 25%, except on a 30-year loan. I think that’s reasonable and I can sleep happy with that, knowing that I’m also maxing out my 401(k) and am able to live comfortably otherwise (i.e., no other debts, and vacations/play when we like). It would be nice to build my wealth, so maybe I’ll try to pay it down quicker — a tough task in the current mortgage rate environment.

By: R.J. Weiss

R.J. Weiss — Tue, 12 Apr 2022 15:55:41 +0000

In reply to Jeremy. The math can certainly make sense with mortgage rates on the lower end. But then again, there are a lot of risks. What if home prices go down? What if prices are down and have to sell? What if stocks have a bad decade. For me, I aim to make decisions that are going to allow my family stability and me to sleep well.

By: Jeremy

Jeremy — Mon, 11 Apr 2022 19:26:24 +0000

I put as little down as I can and invest that ~20%. How often can get you get a sub 8% loan that’s tax deductible and be able to arbitrage without difficulty?

By: Rick Ferrara

Rick Ferrara — Mon, 07 Feb 2022 23:39:06 +0000

Keep in mind, Ramsey’s end game is to create a financial environment that will allow the average person to retire a millionaire – ideally a multi-millionaire if they start young enough and avoid major mistakes (like borrowing for college). Not buying too much house is a very good way to free up cash to allow for savings and investing. Bigger houses can come later.