Do this to figure out how much house you can afford

George Kamel is a personal finance expert and co-host of The Ramsey Show. Following Ramsey’s proven money plan, George went from negative net worth to a millionaire in under 10 years. His goal is to help people spend less, save more, and avoid money traps so they can live a life with more margin, options and freedom.

This channel will simplify complex money topics, bust money myths with actual facts, and debunk the stupid financial advice you're seeing in your social media feed. All with a healthy dose of pop culture, humor, and snark. -

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[rodrigodias]

Due to this math I will own a house in approximately never.

[Jackmama]

The Ramsey Team advice is a little outdated in this formula, given this present housing market. Average 15 year fix rate is 7.512% as of today. In this video, making $5, 000 a month net income, the max housing payment is $1, 250. Getting a 15 year fix, $1, 250 a month is a $134k loan amount, which does not include taxes and insurance. With 20% down, that’s a $170k purchase price. The national average home price as of today is over $400k.

And the icing on the cake, Dave Ramsey is imploring people to buy a home now.

[KHPCLUB]

George is living in La La Land.
$1, 250/mo won’t even get you a room in someone’s house these days.

[melissahood]

There's no home in that price range where I live 😢. The closest ive found are some ancient, gross, one bedroom apartments being sold as condos.

[sinisterhug]

All of us Millennials & GenZ: 👁️👄👁️

[jandkhilbert]

Agree but it's hard to find that house. We have a modular house with renting the lot. It works and the housing prices is keeping the price up on modular homes

[Nicoldnivole]

Our mortgage payment is about 35.7% of what we make a month

[evanchisamorejohnston]

Not about half the cost of rent for a studio in Toronto

[johnlanier]

The average person will have 8 different jobs while owning that house.

[Ric]

All he mean to say is no matter where you choose to Iive - justifying your hefty mortgage doesn’t help you at all because at the end of the day you need to pay it. House poor! The drastic measure would be to move to another state or area where you can afford. But we the people cannot step down from our lifestyle ! Need to keep up with the Jones! Buy that expensive car ! Live paycheck to paycheck

[generalsaurkraut]

I calculated it and making with my salary if $310k I can afford a roughly 400k house under this calculation. That’s completely ridiculous. If you are making 100k I guess you need to live in a shoebox.

[nickelfrizz]

And people try to tell me that the housingmarket is fine... This is depressing man. I'm 29 and about to have two kids, the only debt I have is from school and getting a masters, and my wife and I can only afford a $182, 405 house according to this. My kids are gonna have to be raised in an overpriced 2 bedroom apartment. And this is with us both working full time, wtf!

[rhettlinton]

You gotta update your ratio it obviously doesn't apply anymore

[vladimirchizhov]

So, in Utah you can afford a box. Or do i need to move to North Dakota?

[connie]

And that’s on a 15 yr mortgage, not a 30. Big difference.

[Activated_Dad]

So basically, single people on a single income will not be able to afford a decent house in today’s market.

[jadexu]

It will be impossible for most people to own a house based on Thai math. Realistically, I would think no more than 1/3 would make more sense

[chrisfrederic]

That means the average person can afford a house of about 135K where can you buy houses other than Ohio and West Virginia? I don't know if this is realistic

[jayc]

If you can't buy it cash..you can't afford it

[ZippyChiko]

Lol😂 And they say get a 15 year morgage 🙈 In what world?!?! I make 5.000, - a month and my morgage is 1.750, - and it’s for 30 years long… 😔 Oohh And it’s a small house 721 sq ft.