Should I Pay Off My House Or Upgrade It?

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[Nepthu]

My coworkers son got a big promotion recently. He celebrated by buying a 50k truck to drive to his office job. I thought it was crazy.

[johnSmith-uznl]

I paid off my home first. Paid off in April 2020. This past summer we did new windows and doors. I feel more wealthy doing it my way.... bottom line, the longer you go without major repairs such as a car (always pay cash, even for a new car with zero interest) the richer you will become.

[wachinstuf]

Dave and crew — I’d love for you to one episode run the numbers on the average family income, against the average family home and tell me how this average American family is going to get a 15 year mortgage and yet still have the payment be under 25% of take home pay…I don’t think it’s possible today

[westonr]

The newborn doesn’t take up that much space but everything that comes with…crib, changing table, bassinet, ect

[jojohns]

Get a new house at 30-yr fixed, 5-10% down (~40k) and put current home up for rent.

[AO-nrkl]

We refinanced our mortgage to 20 years not 15. Looking back we could have afforded the 15 year because we have had raises and changed jobs in the past two years but at the time it was too much of a stretch. I knew this wasn't according to Dave's plan but we did what we could a the time and we locked in a 2.875 interest rate. Do the best you can without sacrificing retirement, emergency funds, quality of life etc. and then focus on paying off the house.

[mikesmith-wkvy]

The thing people do with a raise is go and get a bigger car payment lol

[iiqspat]

A baby May be tiny Dave, but they need space to move around when they grow and there is a lot of storage space you need too

[metaltera]

Seriously, how do you pile enough cash to make a huge downpayment for a 15 year mortgage to not make it a 1/4 of your take home pay? Especially for first time buyers

[vjs]

I'd do the remodel. The house prices are way too crazy

[TopVillain]

That extra 300 will most likely be 600 with added property taxes for a more expensive home plus the cost of electricity to heat and cool a bigger home

[travlepreneur]

Dave surprised me on this one to my delight

[goodgirlvicki]

I would pay off the house and get the upgrade later

[jordanporter]

I still struggle with how Dave expects anyone to be able to afford a home if their metrics are to have a monthly payment less than 1/4 of their take-home pay.

Thank you for this post. I think I will quickly payoff my house and then I'll save money to gradually upgrade it.

[blackspiderman]

I feel like there is more to this story. I really would like to hear the husbands input

[hoiendehe]

Dave i sold the rice and beans but kept the truck

[summerforever]

i would still start selling both cars first!!

[kbotah]

Getting a 15 year mortgage you are locked into high monthly payments. Getting a 30 year mortgage, you have lower monthly payment and can always make extra payments when you can.

[tristanrodenhauser]

Jeez just keep it for 3-4 yrs the rates are too high right now

If you have it paid off and you save some change for another deposit even quicker then you can rent out the town house

When you move your kid(s) will still be small, they won’t even notice