Dave Ramsey Explains Why He Is Okay With Mortgage Debt

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[marwanabdrabou]

I really can’t be the only one who was shocked when he heard “Cortney’s” voice...

[stopcensorship]

Mortgage debt is ok because it's such an astronomical amount and its an appreciating asset . You have to be reasonable.

[alsfals]

"Why he is okay with mortgage" 1 minute into the video, Dave says "I'm not okay with mortgage, I tolerate it"

Whoever did this titling, gj lol

[samreagan]

A mortgage is a fundamentally different kind of debt than anything else. Because it has equity on day one if you put down a good percentage. Your mortgage interest rate does not jump to 29.9% if you miss a payment, and if you get a fixed rate then you are always going to pay the same amount every month. That does not make it great, it makes it the least bad kind of debt, the most manageable and predictable kind of debt. Would it be better to not have one? Yes. Would it be better to rent for 20 years so you can buy a home when you are 40 and never experience the growth in home value over those 20 years, perpetually pricing you out of the home you want? Only getting higher unpredictable rent costs?

[enigmathegrayman]

I agree NO DEBT is ok, the problem with purchasing a home with cash and this is a BIG problem is that the majority of people ARE taking out loans to purchase a home and what that does is drive up housing prices higher and higher so that as a renter and hopeful homeowner you’ll most likely not be able to keep pace with how much money your able to save vs the very rapid pace at which the home values grow.

[ThisGuy]

If you pay rent on a place at all you may not be borrowing money but you’re paying somebody else is borrowed money you might as well put that towards your own borrowed of money

[robertbell]

Typically if you had to save the cash for a house you'd be renting forever then have enough cash to buy a shack in the ghetto. Better to save a decent down payment, by a reasonable house, and pay it off ASAP. Meantime you get to spend your life in a nice home. It's not always about the money.

[heathmcconnell]

If he's wanting to do this, he might try looking for one of two things: (1) estate sales, or (2) tax or bank foreclosures.

[luismatilla]

I almost bought a too big house but finally bought a reasonable one, that I want to pay before 45 years old . Thanks Dave !

[daphoosa]

One of the few times renting makes sense is if you can do it for less than the interest component of a reasonable home mortgage. Either throw money away to a landlord or to a bank. A house has the advantage of appreciating over time and giving tax deductions.

[mecheckraise]

People frequently buy way too much house. Buying a small place or house hacking is better but people just can not control their urges.
I am a millionaire now, but If I were 20 I would do things different perhaps. It is funny how things in the rear view is so much clearer.

[InvestingHustler]

Came here to watch a dave Ramsey video. Instead ended up reading all comments on dave Ramsey suing meet Kevin 🍿

[janinedekoker]

I'm sorry but I can't always agree with what Dave ramses says eventhough a lot of his advice has changed my life fr the better. Where I am from you can't rent a dirt cheap place, it'd put you in a dangerous area and you might not survive. So the only option would be to rent in a decent area where even a matchbox is expensive and the rent is more than the mortgage. So I did my calculations and plan on buying a matchbox in an area that's safe as soon as I can get some money saved up. Security is a basic need and I'm willing to go into debt for that.

[aileencrane]

Yup! Paying as cheap of a rental as I can right now to pay for a lot (not all, I’ll admit it) of my house in about 3 years. And then the plan is to pay off the conventional 30 year mortgage in 10 years.

[laurenalmeyda]

The cheapest places to rent still do not allow regular people to save money to buy a house...if they are saving, it's usually very slow. Even the cheapest places to rent (I'm talking studios!) Are over $1000 a month.

[kennethhall]

Not everyone can pay cash I have no problem with a mortgage. If you pay rent your paying someone. Else’s mortgage usually

[patwhite]

It's acceptable because your monthly payment is an investment to own a home instead of giving it away to a landlord. A house payment is also cheaper

[CJ-wclf]

I would be suing if I was sued like him. He has to defend himself while he is trying to help Americans live away from the corrupt banks. He has helped me and I say sue on, and do not get on his bad side, because he can play that game too. He has a lot of employees to pay with Obamacare, and he deserves to be rich for his family, and his hard working self. He is a very giving man. All you have to do is see how he tips at a restaurant. He is the gift that keeps on giving, even after I have listened to him for years, and have been debt free for years.

[RainbowRising]

A good way to think is: When you are renting you are also renting the price. That means the rent will go up every year.When you are buying you are buying the price. The price will be fairly stable over long term.

[sudakara]

Can an Auto Accident Law suit affect the Mortgage Application at closing ?
Very small accident but the law suit is for personal injury after 1.11 years after accident . And the Insurance coverage is just state minimum