The True Cost of Buying a Home (It’s More Than You Think)

Next Steps:

Explore More Shows from Ramsey Network:

Ramsey Solutions Privacy Policy

Product Links:

[itsmatt]

Contractor here, I specialize in surgical rot repair. Be assured, a house is a TERRIBLE thing to dream about. Your house should facilitate and support your life, not the other way around but only 1 out of 1, 000 people know and practice this.

[tylercampbell]

I bought a house with no emergency fund and thank God I had no issues for the three years building one based on a video I watched of Dave's but should be common sense..I feel so much less stress knowing I can handle any situation..Its a blessing that can definitely become a nightmare if you're not prepared..

[macneoh]

I'm so tired of these people calling in making 5X the national average and a paid off home trying to buy a million dollars house. Where are the callers making $60K with real problems?

[catherinesanchez]

When I bought my house the bank told me I could afford X but my numbers showed me it would only the a couple emergencies to bury me . I didn’t listen and bought less house than they were willing to finance . This paid off in 2008 during the crash when I was out if work for 18 months . I still went into foreclosure towards the end but then found a job and was able to dig my way out before losing the house . If I had listened to to the mortgage lender, I would have lost the house

[philh]

My $200, 000 house in 2015 is now $500K in 2023. WTF. I look at new builds in my area, they are all 800K-1000K. Absolutely insane. I don't for a minute think they are worth 75% of that.

What people don't often account for is taxes. My tax bill went from $4500 to $8250 / year. That's $313 per month increase in escrow payment.

Add on maintenance, yes, you will need a roof and complete HVAC replacement every 15-20 years, a water heater every 10-15 years. Appliances every 8-10 years, Flooring / Paint every 20 years, Sump Pumps ever 10 years. Driveway sealant every 5 years, mailbox every 10 years. Budget at least $250/month toward a property maintenance fund. I highly suggest you prefund your maintenance account with $10-15K.

Lawn Care / Tree Care / Pest control, budget $200/month

Utilities, budget $200-300/month.

[stephensullivan]

I cry when I watch these.
Trying to get out of debt from my stupid student loans ASAP...
Don't go into debt to go to college kids...

[CycleCruza]

Its always something that needs fixing with a house. However, it beats living in an apartment any day.

[Essentialoilsujess-weagle]

My husband and I have done well. Buying ugly houses in nice neighborhoods. We’ve gotten 3 super cheap places to live because we were willing to clean out the houses and fixed them up. It’s amazing what new paint, new flooring and a rack can make sad looking house look brand new 😊

[modernsoccer]

Don't rush, a friend bought a house and she literally uses all her pay check to pay monthly leaving her very thin on budget, about 3400 per month. I still live in my apartment of 900 per month, life is not a race. Trying to save as much as I can and live comfortably

[EmpressMermaid]

Living in Pensacola like this caller, I can tell you that Florida waterfront property has ASTRONOMICAL insurance costs. Not to mention the danger when (not if, but when) the next hurricane comes along. Or flood. I don't think this guy realizes what he's getting into.

[bettysmith]

Glad they are doing this video, because a lot of people seem to only be concerned as to whether they an afford the mortgage and down payment. No one tells them how much it costs to own and properly maintain a house!

[DamianBadalamenti]

Property taxes and insurance is going to kill them

[eplugplay]

Similar situation where my wife and I paid off our mortgage about 3 years ago and we discussed about moving up to a bigger house. But with 2 kids our current home is a 2230sq ft house with 3 bed 2 bath and an office which is plenty for the four of us. Its zoned in really great schools from elementary, junior high, and high school and by the time they leave college we would downsize anyway to a house this size or even smaller. So in our mid to late 30s now it would be a very long time for our kids to move out and we rather invest for early retirement. We have 0 debt of any kind, 2 year worth of emergency fund in case we both lose our jobs, max out our retirement accounts, fund our two kids 529, and even fund a taxable account. Life is so much better stress free and there is no house out there that would give us the same feeling everyday. Already feel semi retired and we feel that we skipped 15-20 years of our lives to be where we are today, priceless! Also since we save about 40% first, we mostly enjoy eating out and going on vacations with the left over money.

[jimeagle]

Tack on the taxes, insurance, upkeep, maintenance, unforeseen expenses on top of the mortgage ……….and that’s why mom and dad rarely go to restaurants anymore ….

Thanks
~Jim Eagle

[bigcahuna]

On the first caller, don't forget about home owners and flood insurance. On a $1M house near the gulf coast in the FL panhandle, insurance is EXTREMELY expensive if they can find a company to insure them (State Farm and Farmers jumped ship from the FL home insurance market a while ago), and companies can jack up premiums at any time upon renewal. On a $110K income, I'm afraid they will be house poor just to cover the maintenance on the property. They should look into purchasing a home half that price and they should be fine.

[lorrainei]

I’ve accepted that i won’t be buying a house anytime soon and I’m ok with that. I’m content in my rent stabilized apartment for now. The way life is right now with inflation, I’m not even trying to put myself into any heavy debt.

[TherealZacharyCarmichael]

my grandfather left me two homes and dear god its alot to handle but im grateful

[NAB]

I’m convinced Some of these people be calling just to show off. This doesn’t really represent AMERICA where people are struggling to put food on the table. When food and tables have gone up in prices but wages have not.

[superman]

first place i got, i thought of it as an investment and broke even ... the place i got now, i think it of a home to live and it's priceless...

[annahopp]

The most important feature of my dream home: PAID! 5 bedrooms on only 2, 000 sqft, smallest house on the entire street, no frills shack. We all sleep wonderful and have plenty of money every month to invest thanks to no house payment.