Is your mortgage or rent no more than 25% of your net income? I am trying to step up my financial literacy game and trying to save enough to have my mortgage be no more than 25% of net income. It’s hard in California or other high cost states. Maybe I should move?
Mortgage payments are several hundred percent of tc lol
Between the mrs and I, yes. Just me, not without including my monopoly Uber money.
Dave Ramsey is a hack (whose advice doesn’t traffic with reality, with results ranging from slightly helpful to utterly counterproductive). A successful hack, granted, and one whose book/tape/program you probably uncritically bought, like most of his followers.
Why you think he is a hack? Not a blind follower but Generally I like what he is recommending (no debt)
This 25% advice is dumb and indicates that he doesn't understand how real estate (and other things for which supply can not easily increase with demand) is priced.
Sometimes it is all too obvious he comes from small-town Tennessee. “It shouldn’t be hard to find a $400 a month trailer if that’s all you can afford.” Yeah: where the median income is under $20k a year. Lmao! Just ask Dave about HIS house.
About 15% if you are talking after-tax and retirement savings, including insurance and prop tax in the mortgage pmt
Yes only if I consider net take home for the year including bonus and stock awards. Otherwise no if I just look at my base income. That’s hard to do in Cali.
It was ~20%. But now it’s 0. Doubled down and paid it off.
Uhh you missed a very important detail. Ramsey says no more than 25% of your net income on a 15 year mortgage... fucking impossible if you ask me.
Right unless you’re putting 50% down. He is a weird guy. Tells people to abstain from ANY credit products insomuch that ALL accounts drop off and you don’t even have a score anymore. Then, refers his listeners to Churchill Mortgage (whom Dave endorses) to perform “manual underwriting” because you don’t have anything on your credit report. This isn’t what’s best for the consumer, because following his instructions to the letter will cut down on CHOICE and the ability to shop mortgage companies and other lenders competitively. So much of lending is done with automated underwriting nowadays, you need a FICO score to get the instant approvals for things like credit cards (not subprime) and auto loans (again, not subprime). Credit unions are great for low interest auto and sometimes home loans, but most people I know want accounts with the large banks when it comes to credit cards, as it’s easier to get higher limits.
It’s not impossible but you just have to make a TON of money. Makes sense though as you don’t want to be house poor and a quick way to become wealthy is to pay off your home as quick as possible.
Ask Dave to stay in Palo Alto and then comment