So You're Ready To Buy A House? (Now What?)

Buying a house could be the biggest purchase of your life. We teach that you should put at least 20% down on a 15-year loan. And the more money you put toward your down payment, the less money you have to spend on interest every month. In this episode, you’ll learn the best way to save for a house to set yourself up to win with money now and in the future.

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[hassanahmad]

24, married, debt free, 6 month emergency fund, saving 15% for retirement every month and saving for our first home. You can do it! Anyone who tells you otherwise is stupid. We are so much better off than many people we know because we followed Dave’s advice! Thanks be to God.

[gabrielachevalier]

I love how Dave's tone changes to a dad sitting down with you seriously in the formal living room when he is talking to young callers.

[MegatPage]

Purchasing a home is already a very difficult thing to do, unless you pay cash or don’t get a loan from the government. If only my minimum monthly house payment, over the course of 30 years I’ll pay more than double what my home is worth. I purchased before things got crazy so I got a good interest rate. I couldn’t imagine trying to rent or buy right now.

[DeeDee-]

This method of buying a house sounds so ideal, but its overwhelming for me. Trying to save 20% is so HARD 😩 for a 300k home. I was looking for homes in the 200 k in my area and they are all fixer uppers (which i definitely wont have the funds for). This housing market is killer 😭

[marcopolo]

I am on my 30s and I own house with 4 bedrooms and 2 bathrooms. I live alone in the whole house. I own it since i was 21 years old. The mortgage is already paid off and no need to worry about monthly payments. It feels good to own a home, and no rent an apartment in the United States.😊🏠

[LioraLand]

I regret not putting 20 percent down!! PMI is a waste of money!!

[wesleycomer]

I make right at 70k. With a 15y fixed and a payment 25% of my take home pay, my down payment on a 300k home needs to be $215, 000.😂

[Carnerd]

1/4 of your take home income and a 15 year mortgage. The average American can now afford a 10x10 shack in Barstow, Ca.

[NAB]

This model worked when housing wasn’t as expensive and interest rates weren’t as high. Adjust and adapt Mr. Ramsey. This isn’t going to work for normal households when the average mortgage is 2400. You would have to make 10k in take home pay, 120k after taxes a year which is about over 200k a year. Who makes this? Median income is under 50k. Be realistic.

[sgmaricelli]

I like a lot of what of y'all have to say I mean 90% of what you say I agree with. This is where I disagree. the whole 15 year mortgage gambit. That is so difficult to adhere to and forces you to have an insane emergency fund. forcing you to tie up more money that could be better invested. Sure high yield savings are at crazy 5% rates today but they won't stay there forever. As long as your lender doesn't have a prepayment clause that will charge you fees for paying more of your mortgage off. I would do a 30 year mortgage and pay against the principle more. Treat it like it were a 15 year mortgage but if something goes wrong you can easily pull back without losing the home. Sure your rates might be slightly worse than a 15 year loans but that peace of mind is so worth it to me.

[jbone]

Lots of millionaires have been adequate both in Bitcoin AND Crypto. Take that same study in 10 years and you will have different data

[Gmac_Greg_M]

If you’re paying 2k for rent you need to absolutely buy a house.

[Aunny]

With rates and prices at their current levels, 20% is pretty much required. Most people nowadays cannot afford a 2000+ mortgage.

[Richard.Cabeza]

I’m converting from being a believer in renting to wanting to buy a home. I do not borrow money and need to sort out how to cash in some stocks to pull together $200k without getting hosed on taxes. I have about $30k I can tax loss. It sucks poorly built houses are stupid expensive. Maybe just buy land and build one…ok, that’s off topic. Anyway, how to buy a house for cash?

[mrcrowleyoz]

Dave, in order for your math to work 1)People would need to make a 3 times the average local salary and/or buy a very cheap home, in which case the local job market would probably not pay you much. or Both spouses would need to be working and making premium salaries. The average man cannot afford to do what you preach.

[atdepaulis]

Haha 😂 I was going to say just do a 50/50 split and be good haha

[CoachMeMLD]

Dave said I don’t buy an investment property unless I steal it “” what percent of this price is stealing some thing? 70% of the list price or 50% of us price or even less is there a rule of thumb?

[ccochanl]

Georgie shout out to the paid off house uncle Dave taught my guy well that’s a blessing with a new baby ❤

[Jellyclaws]

I make 95k, for a 15y fixed I can max out at around 140k mortgage. If I stop all 401k contributions. Not including insurance costs.

[ralphsaile]

15 year loan and 25% of income is totally unrealistic in todays market. I see people’s income and finances as a 25 year mortgage veteran. Most people can barely scrape the 3-5% down together, and need a 30 yr fixed to qualify. That’s reality in a metro area.