One Type Of Debt I'm Okay With

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[ajettagli]

The reality is that most can't afford a 15 year mortgage. You can get a 30 year mortgage and pay it down faster to save some money. That is a better option for most people at minimum income level. It allows them control/ flexibility.

[jnlong]

We were not fully debt free at the time we purchased and we didn't have a savings either. But we purchased a HUD foreclosure way below a 1/4 of his take home pay. on a 30 year since that's what helped us close... and then refinanced into a 15 year two years later. (Which only increased our payment by $65/month). When we immediately got the house we worked our tails off to get it livable. my husband went to work 7 days a week for 16 hours a day to pull us enough finances for each major appliance or piece of furniture we needed to purchase. It took us about 8 months of Washing clothes by hand, air drying our clothes, cooking over the camp stove we had, sleeping on air mattresses, push mowing the almost two acres to purchase things. We knew we were taking a calculated risk jumping into a home knowing we weren't actually fiscally ready. It could have tanked us, but we were committed to make it work no matter what. now I look at the market and there's no way with our income as a single income family home that we could purchase a home. In our area the rent is literally double our mortgage. And our home that we bought at 130k is worth over 650k now. I know the path Rachel is saying is actually the best to walk into a home, but that's some tough advice to follow for families. Looking back I am grateful we took this step and just put in a ton of hard work to make it work.

[darrellhicks]

I didn’t qualify for 15 year mortgage so I have a 30 year mortgage which I paid off in 10 years. I showed them.

[Sam-at-PDX]

Get a 30 year fixed mortgage. If you can pay it down faster, do it. That's the best strategy, period.

[lawrencegonzalez]

It’s better to have the option to pay extra on a 30 year vs the requirement to pay extra on a 15 year.

[dangerline]

Agreed with everything except the 15 year mortgage. Get a 30 year and pay it off quicker if and when you can. If an issue comes up, then you don’t have to worry about that larger payment

[jeanetillman]

So out of touch. A 15 year mortgage is not realistic for most people. Do a 30 year fixed rate. Don't set yourself up for failure. Most will pay off the mortgage earlier.

[Morpheus]

The median home price in the US Q2 2024 was 412300. 20% down with $4000/yr in taxes, and $2000/yr in insurance is about $3300 a month. That's a big nut.

[debbie]

I think a 30 year mortgage is safer. Just acquire the 15 year amortization chart with the intention of paying 15 yr however in case you need to do a car repair or other expenses you will be safe as you don’t need to charge it. It worked wonders for us and it will pay it down.

[naomiemoore]

In a perfect world. Purchased my first home at 26. Had plenty of emergency money. Had a couple credit cards for travel and emergencies. Didn't want to be house poor and back myself into a corner. I paid the 30 year mortgage off in a much shorter time. It takes discipline. If one doesn't have that? Recipe for disaster.

What one recommends and what one has to work with are two different things.

Still have that home. It is a rental with awesome tenants.

You guys were not around when I was young. No computers or internet back then. No cell phones either.

Remember the word discipline? That's what it takes.

I have no computer, no internet, no tv. I have a cellphone, that's it. That cash ($400) goes directly into an investment vehicle. To make more money. Remember? Discipline. Not everyone is uneducated and just floats through life spending willy nilly. I had a great team that helped me get there all on my own.

[moeLee]

I asked my lender (4 years ago) if I should do 15 he said “ no, do 30 year and pay extra whenever you can”

[LanceHoward-ub]

Do a 30year and make biweekly payments. You may not pay it off in the 15 years, but you pay it off in less than 30.

[AlManango]

People don’t know what 3-6 months with a mortgage looks like. Taxes btw can go up, while your “main loan” doesn’t. Literally robing you for a roof over your head

[Phil-ie]

I'm 78. Never had anything but a 15 year mortgage. Managed to pay every one off in 13.

[vchavez]

Go 30 year and pay as if it were a 15 year... Just in case the future throws you a twist!!

[xhalozero]

The 15 year mortgage doesn't make sense bc most of the people can't afford them. So now those people have to rent and they definitely wouldn't be better off renting...

[shanewilson]

I strongly recommend a minimum down payment of 30 % down.

[DontAtMek]

To afford a 300k house per Dave Ramsey, you need to
1. Make 10k take home each month(so after taxes, benefits, and 401k)
2. Put 60k down
3. Have roughly 15k in savings

[ianvanessen]

If you’re debt free making 200k a year you still cannot afford a house in Canada

[michaelreed]

The Ramseys have their out of date talking points that they don’t waiver from regardless of inflation, wage stagnation, or the passage of time.