These Mortgage Mistakes Could Cost You Thousands
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- เผยแพร่เมื่อ 16 พ.ค. 2024
- When you’re ready to buy a house, making sure you get the right mortgage is one of the most important home-buying decisions you can make. But the truth is, most mortgages out there suck. In this episode, you’ll learn the best way to finance a home, sneaky mortgage traps to avoid, and how you can feel confident in your lender.
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Most people are unable to handle a fall since they are accustomed to bull markets, but if you know where to look and how to get around, you can profit handsomely. It depends on your entry and exit strategy.
The fact that the US stock market had been on its longest bull run ever makes the widespread worry and enthusiasm understandable given that we are not used to such unstable markets. As you pointed out, it wasn't tough for me to earn over $780k in the last 10 months, so there are chances if you know where to go. I hired a portfolio advisor since I was aware that I needed a solid and trusted plan to survive these trying times.
I tried looking into new strategies to profit in the current market because my portfolio has been in the dumps for the entire year, but everything I tried just seemed to miss the point. Please let us know who your financial advisor is by name.
I met Sonya Lee Mitchell, my consultant at a gala and got in touch with her. You can look her up online if you require careful supervision. I pretty much trade in accordance with her schedule and haven't been let down.
“SONYA LEE MITCHELL” is the licensed advisor I use. Just research the name. You’d find necessary details to work with a correspondence to set up an appointment.
I copied her whole name and pasted it into my browser; her website appeared immediately, and her qualifications are excellent; thank you for sharing.
Mortgage rates are currently at an all time high since 2000(23 years) and based on statistics on inflation, we might see that number skyrocket further, a 30-year fixed rate was only 5% this time last year, so do I just keep waiting for a housing crash before buying or redirect my focus to the equity market.
The stock market is no different, to maintain profit, you need to have some in-depth knowledge on the market.
True, I mostly just buy and hold stocks, but my portfolio has been mostly in the red for quite awhile now. Unfortunately to be able to make good gains, you’ll need to be consistent and restructure your portfolio frequently.
In my opinion, it was much easier investing back in the 60s but it’s a lot trickier now, those making consistent profit in these times are professionals reason I’ve been using an advisor for the past 5 years to consistently build my portfolio in preparations for retirement.
@@ashleyclaire3029 Please pardon me, who guides you on the process of it all?
I won't pretend to know everything, though. Her name is Vivian Carol Gioia but I won't say anything more. Most likely, you can find her basic information online; you are welcome to do further study.
Really, banks require more regulation. The entire idea of banking as "let's gamble" is terrifying. Because they discovered in 2008 that the government will always bail them out, there are no repercussions. These bank crisis are so worrisome. This whole financial crisis and the Great Recession posed the most significant macroeconomic challenges for the United States in a half-century, leaving behind high unemployment and below-target inflation and calling for highly accommodative
In my opinion, some of these banks were attempting to restructure their bond portfolio, which involved selling their low-yielding bonds despite the potential loss, and compensating for it by buying higher-interest-rate bonds on the open market.
The investment returns of various investors can vary even when they employ the right methods and have the appropriate assets. It is critical to recognize that experience is a key factor in a successful investment strategy. I personally understood how important this was and sought the advice of a market analyst, which allowed me to significantly increase my account's value to around a million. Just before the market correction, I strategically withdrew my profits, and now I am again taking advantage of the buying possibilities.
I think this is something I should do, but I've been stalling for a long time now. I don't really know which firm to work with; I feel they are all the same but it seems you’ve got it all worked out with the firm you work with so i surely wouldn’t mind a recommendation.
I definitely share your sentiment about these firms. When I was starting out, I checked out a couple of freelance investors online, so you could do the same. I personally work with “Stacie Lynn Winson”, and she's is widely recognized for her proficiency and expertise in the financial market. With a comprehensive knowledge of portfolio diversification, she is acknowledged as an authority in this field. Most likely, her deets can be found on the net, so you can confirm yourself.
After conducting an online search of her name, her website quickly surfaced, piquing my curiosity. The initial impression is positive and I intend to arrange a call with her. I'll make sure to provide you with updates on how it goes. Thank you.
Dude trying to refinance his 2.5% rate is wild. Ride that thing for the full term.
Guy do t know how math works. That is mind blowing!!!
@@aldocadena6360Exactly, Everyone should know basics of loan terms, As per loan term you may not allow to repay fully but it allows to repay portion of it. Apart from that if this caller was calling within last year, since show recording seems older. He should just put in Fix for 5% and make 2.5% interest and enjoy free money.
let us say, he wish to pay $30K Extra / Year, he would put fix with 5% and start earning $1500/Year on that, while he need to pay interest $750 for the year and save $750.
Off-course he can pay back his loan as he would pay current by paying more every month.
@@aldocadena6360refi @ 2.5%
Seriously??
@@aldocadena6360that’s the school system for you. It’s not an education it’s rote memorizing and indoctrination.
He doesn’t have to ride it to the full term or refinance which is worst, just take that money that you were going to pay to refinance fee and put it towards the principal and make some extra payments every month on principal before you realize you will be done
Refreshing to find a person who will give you great advice without trying to sell you a course
Agree 💯
He literally has a course that he sells
@@haydncook6503 Agreed, but while he pushes it a smidge he really doesn't push it nearly as much as other similar folks ...
Yea he's not that much different
My husband and I started seriously investing only 15 years ago after we paid off our house. For the last 10 years of those 15, we have put in the max allowed in our 401K's. Before the latest drop in the market we were down to $150K Now we are up to about $475K. Having a paid for home allows you to really accelerate your savings rate. The earlier you begin to SERIOUSLY save in your 401K, the quicker you will be able to live off of dividends.
Did you adjust your fund allocation at all during that time?
@@Watkinsgorge i'm not a pro but will recommend you can speak with an expert, Martha Cornell Kerns, she will have answers to you question
bombarded with the don't sit on it during the inflation, I wanted to jump in 8/22 and did nothing. So far this year I think I need to get my feet wet, hope to speak with her soon
@@addahHusayn best wishes
I like it. We have very similar paths to retirement as I am in my early 40s and starting my retirement escape plan. I have one question. How long did it take in years for your compounding to really kick in on your 401ks? For example, when did it jump from like 25-30k to over 100k? I’m just curious as i build my accounts.
Love the passion in Dave’s voice… I listen to this every morning
An interest only loan worked for me...when the previous "owner" defaulted.
I purchased in '09 when the bottom was falling out. 30 year fixed, but paid off in 12.5 years. I paid extra towards the principal from the 1st payment, most months and if/when I received a bonus.
Look at it like investing. Do it early and often.
House in 09 were like 250
@@SB0458 Hahaha. My older small home on an acre was 105k. Previous owner paid 345k in '06. In California...
Just the message I've been praying for 🙏 Thank you!
Bought a short sale, from day one was adding enough money to my house account to pay two additional payments a year. It’s been 7 years and I do not regret it.
I have an ARM loan but it's with the Credit Union and I owe less than $60,000, rate is less than 4 percent for 5 years, once it expired they always ask if I would like to continue with the same rate for 5 years at a cost of $500. I have no idea what type of loan this is but this is what they have offered me two years ago. I took it and am on track to pay the house off at the end of 2024.
I need to update my home owners insurance on my paid for home. Thanks for the reminder Dave!! 😊
Same here. Didn't think about this one.
1:29 "My ticket to homeownership"
With the way things are going, you won't own the home .....the home will own you.
You can thank Joe Biden and the Democrats for the inflation. This is ALL on their watch.
Better throw my down payment in TSLA out of the money calls that expire in a day!!!!!!! LETS FREAKING GOOOO
Wow I never considered my home owners insurance policy.... thanks Dave
To rest of the 50% club (have not checked their home replacement coverage), after listening to David, I checked my coverage. House was bought a while back for $670k, insurance replacement coverage was about the same amount. After making a few inquiries
, estimated replacement today, $1.2M (yes - over a million! Yikes). We increase our coverage to cover, yes the premium went up but dear God, if something did happen and we didn’t have the coverage?? - Can’t say this pound enough - CHECK your policy, it’s don’t cost to ask. Be well all
As an independent agent, I see this a lot w/ SOME carriers, but not all, especially the ones w/ strict underwriting prior to issuing a policy.
Glad your home is covered, sorry your rates went up. Did you ask after senior/alumni/etc -discounts, and make sure you report to your agent new roof/alarm/furnace. That may save you a few dollars.
@@Laura-ed5kf that's an excellent suggestion, I will give my company a call regarding a seniors discount!
Look at what similar home sq ft costs new and figure your replacement about same
Great advice! Mortgage rates have skyrocketed over the years, It's recommended to save at least 15% of your income in a 401k. You can use online calculators to estimate how much you should save based on your age and income. Saving at least 15% of your income in a 401(k) can help ensure that you have enough money to retire comfortably. By saving this much, you can take advantage of compound interest and potentially grow your retirement savings over time.
For me, I believe retirees who struggle to meet their basic needs are the ones who could not accumulate enough money during their active years to meet their needs. Retirement choices determine a lot of things. My wife and I both spent same number of years in the civil service, she invested through a wealth manager and myself through the 401k. We both still earning after our retirement.
@@BodhiWilmot It's unfortunate most people don't have such information. I don't really blame people who panic. Lack of information can be a big hurdle. I've been making more than $875k by just investing through an advisor, and I don't have to do much work. Doesn't matter if the economy is misbehaving; great wealth managers will always make returns.
@@markgunter35 Interesting. I think this is something I should do, but I've been stalling for a long time now. I don't really know which firm to work with; I feel they are all the same but it seems you’ve got it all worked out with the firm you work with so i surely wouldn’t mind a recommendation.
@@Leonardjones1 My advisor is BECKY LOU GORDON , a renowned figure in her line of work. I recommend researching her credentials further. She has many years of experience and is a valuable resource for anyone looking to navigate the financial market
@@markgunter35 She has the appearance of being a great authority in her profession. I looked her up online and found her website, which I reviewed and went through to learn more about her credentials, academic background, and employment. She has a fiduciary duty to protect my best interests. I sent her an email outlining my objectives and also booked a session with her; thanks for sharing
People will have to accept the possibility that we won't ever return to 3%. If sellers must sell, home prices will have to decline, and lower evaluations will follow, sure I'm not alone in my chain of thoughts. I now look towards the stock market to fuel my millionaire goal
In my opinion, home prices will need to fall by at least 40% before the market normalizes. If you do not know whether to buy a house or not, it is best you seek guidance from a well-experienced advisor for proper portfolio allocation. So far, that’s how I’ve stayed afloat over 5 years now, amassing nearly $1m in return on investments.
this is quite huge ! what have you invested in ? much more info needed please ...
'Monica Selena Park' oversees my portfolio, simply do your due diligence. She's an extremely intelligent person, very thoughtful, cautious, and shows a great deal of expertise with over a decades of experience in her line of work.
thanks for this tip, found her just after inputting her full name on my browser, no-sweat.. she seems impeccable!
SCAMMERS ^^^^ DO NOT CONTACT
I can’t believe David just described exactly what happened to me.
I wish I had heard this before, which for some might be a common sense. Not for me, it was not.
My house of 22 happy yrs living in it, burnt down back in 2021, and I don’t need to explain the rest of the story 😔 it hit me hard at the wrong time (if there is even a perfect time to lose your house)
To make matters worse, I bought me “tiny” house using the “tiny” insurance money.
Many insurances rejected me because of wheat had just happened.
Even the insurance I’ve had for the past 22 yrs didn’t want to insure my new house.
Talking about nightmare
I'm so sorry that happened to you ❤ I hope you are living better now may God bless you 🙏
Great explanation thanks Dave!
I'm glad that I listened to Dave and bought a house in 2020. I am even more happy that I didn't completely follow Dave's rules. A fixed-rate mortgage is absolutely the way to go. I am locked in at a 3.25% rate which is awesome. The 15-Year mortgage term sucks, I got a 30-Year. I am glad I did because inflation made things expensive and lower payments in times of crisis helped. When there wasn't a crisis I threw a lot of extra money into the principal. I only put 3% down instead of 20%, breaking another Dave rule. Yep, I had PMI and paid $114 a month. However now that I have 20% equity, I petitioned Fannie Mae, and my PMI is GONE. Meanwhile, my house has gone up in value by $95,000.
yeah I dont get it either. A 15yr sounds like a noose around your neck. Might as well get the 30 and pay it down extra if you can, and still be done in 15. But less risk
@@garage3022 I can tell that, like me, you are not a "minimum payment person". We throw extra money towards any debt. I get that so many people don't follow our thinking and just pay what the lender says and no more. They will absolutely take 30 years to pay off a 30-year mortgage and that's sad.
100% agreed @@garage3022
His advice of aggressively Paying off a 3% mortgage today makes no sense, not when rates are 7%
@@shellyu1442 I do think he may be too aggressive for some on that point. I personally love the idea of having a paid-for house when I retire. Since I am already 54, I need to be aggressive to meet that goal.
Bought my first house in 1986 and rates were like 11%. The credit union introduced a variable rate and we said no way, it wasn’t logical, 30 year conventional only. I was 22…
You refinanced it all the way down though, right? Might incur fines but they were probably worth it
State Farm is different from region to region and state to state. In Colorado, the homeowner's policies do adjust for the increase in value. In Florida (moved here 9/2022), Statefarm will not insure a home older than 2011. Check your locale for accuracy in your homeowner's insurance. FYI, the hurricane was named Andrew.
They stopped home owners insurance here in Ca
Here in MO State Farm gives you 20% extra increased dwelling coverage when you insure your home for replacement cost. So 20% of 300k being 60k thus insuring you for 360
Paid off my house about 2 years ago. Never again. I'd live in a cheap trailer before I'd get another mortgage. Didn't realize how heavy that debt weighed on me until it was gone and it was only $180k at 2.5%
You just have low risk tolerance.
I have a mortgage on a multi-million dollar home and am not stressed at all.
The peace of mind is wonderful Connie.
@@15KHPCLUBlike they say, "theres levels to this"
How do I convince my wife to this
If you can't convince her she may not be the right one. I am sorry to say that.
Thank you for your video
Thank you for teaching God's way on debt. It has been a tremendous blessing for us.
Sure
Hurricane Andrew-my mother works insurance. This hurricane changed a lot of things in Florida.
Yes, it was Hurricane Andrew, it was on August 24, 1992. My Father was in the Air Force and we just arrived to Homestead AFB just 3 weeks prior. We closed on a house but didn’t move in yet. We evacuated to Tampa and moved there afterwards.
If you can not afford a fixed rate maybe you need to reduce the house size smaller.
Whats weird is that before I had ever seen any of Dave's vids or even heard of him, I sat down and came up with a plan to pay off my debts and build wealth and then when I saw Dave's content I realized it was exactly what Dave preaches.....
The other thing about being aggressive towards paying a 30 year mortgage, in my case, an extra $100 bucks a month, takes off 7 years. After 6 years of paying on it.
How much was your house?
No! They need to learn from those who lost homes in 2008-09 bc of ARM so many of my friends bought and lost their first home back then from that
Banks aren't greedy for offering variable rate mortgages because they also offer fixed rate mortgages. It's the consumer who's choosing the wrong product.
The adjustable rate is simply a "stupidity tax" that banks charge.
Thats why a VA loan is a great way to have.
I did an ARM in 2005, adjusted in 2008. First 2 payments increased. When the market crashed my payments went down. Paid less for three years. Home value dropped 50%. No chance to refinance. Had to do a short sale. Was saved from paying taxes on the $170k loss the bank incurred because of the Bush tax forgiveness (whatever they called it) law. Will never do an ARM again.
Arms are trash.
What about getting an arm to do a flip in today's market? @@shanew7361
My parents lost the home that we grew up in in 2010 after the arm got so bad and the fact the kept pulling the equity
@FrostyTheMan what area was this in? I know there was no way to know that the market value would go down that much, but the key was to either sell at that point or refinance at the end of the 3 year arm before the home lost value? Just curious… why didn’t you refi when the arm expired?
@gingerlox1050 I understood how they worked and the strategy. We did the arm because we couldn't afford a 30yr mortgage at the time. We were the next to last condo bought. 1 month later the last condo closed. $20k less than what we paid. Values did not recover during the 3 years. We couldn't have sold or refinanced at any time though we wanted too. Home was 50% underwater when the arm expired.
The adjustable mortgage the homebuyers are getting now are more of the 5 year arm, fixed 5 yrs and adjust in 5 yrs
Great info here! Important to compare ARMs with fixed rate products. There’s not enough savings to take on the risk in my opinion.
Definitely these two are scaring some of these people calling in, u have to take a risk most of the time to make it happen, 2500 is ok to Pau on mortgage especially when u make 100k a year, I make 90k a year and and I bought my place for 550.k plus had my pool and whole landscaping redone and now I can actually feel like I'm living my dream and I dnt mind paying for it 2500 a month
Suzanne is nuts to be buying a $550k home with 0 down bringing home $100k/yr. I would find a different place to live and at least put down 10% on a $250-350k home & do a 15 - 20 yr mtg
If Suzanne lives in the PNW, then her cost is close to the median for a single family home. It might be too much to ask to uproot her entire family, career, social connections to move to a region with a more affordable median.
FYI, I have State Farm homeowners insurance and auto in Florida. I do a broker dive usually once a year and have never found a lower rate. Plus, a lot of insurers don't cover home and auto combos, so you end up dealing with two different companies to save a couple of bucks.
Which one is it, interest are high or low?
Would you do an adjustable rate when rates are at a record low (2.75% rate) or at a 40 year high (7.75%)?
Neither. Have you been listening? Don’t get adjustable rate
theres no PMI ON V.A LOANS
Great advice to the guy wanting to go to 15yr. Good news for people locked into low 30yr fixed. Almost 0 mortgages have prepay penalty nowadays. So slap on extra payments and turn it into a 10 or 15 year if you’d like. Just make sure all other debt paid off before you start paying down the 2.5% 30yr fixed mortgage loan
Those extra payments would be better kept in a side account that is liquid to the borrower. If you send extra payments to the lender, and lose your job? That money is trapped in the house, it does not lower your P&I payment, and if you lose your job, that extra money you sent will not prevent you from being foreclosed.
If you made those extra payments to a side account, that money is liquid and available to you. If you lose your job, you could still make your mortgage payments until you find work. Liquidity
@@stephenmauriellomortgage that is what credit cards are for. I think one should Divide their mortgage payment by 4 and make weekly payments, also make an extra payment on the payments actual due date. You will pay close to nothing on interest and get out of a 30year loan in 10-12 years
I had a wholesale lender try to get a loan with them to buy a house.they said I can get better interest with them . Then if I go to bank or a broker.what u think ? Is it really going to help me or them ? Long run and short term ?
When the fixed rate was 6.5%, the ARM offered by a local bank was 4% for 2 years, could adjust (up or down) no more than 2% every 2 years thereafter while not being able to surpass 10%. Also, if the VA is clearing their 100k increase its a pretty safe bet they got disability checks coming in equal if not more to the mortgage.
Why would anyone buy a house without getting a fixed rate in the first place. This was the problem when the market crashed in 2007 because everyone was buying homes with adjusting rates. The rate goes up, and they can't afford their home and end up foreclosed on their home. Please, people listen to Dave Ramsey his always tells the truth, and he gets me out a lot of mess . I almost finish paying my house off because my wife and I are a good teammates. Every extra money we get we put it toward the principal of our mortgage loan
Dave Ramsey - what's your opinion on paying points to get a lower rate. I know how to do the math to figure out when the "break even" point is but would like to know your thoughts?
You should never buy points. Instead, use that money as a down deposit on your mortgage loan because when the interest rate drops, you can refinance your loan to get that low rate. Please don't listen to these corrupt loan officers pushing sales towards you to buy rates down.
I refi'd when the rates bottomed out a couple years ago, from 4% to 2.875%. Despite the closing costs and fees, i believe i still made out ok
I saw in a video that though dividend-paying stocks don’t offer dramatic price appreciation, they can provide a consistent income stream, I want to spread across $400k into profit yielding dividend equities but unsure of which to get into.
Speaking with an advisor helped me stay afloat in the market and grow my portfolio to about 65% since January, , and in just a few months, I was able to earn over $650K in net profit from high dividend yielding stocks. you should try it if you're unsure about the market.
my partner’s been considering going the same route, could you share more info please on the advisor that guides you
I started out with a financial advisor called *Kaitlin Rose Sternberg* Her honest approach gives me complete ownership and control of my positions, and her rates are incredibly affordable given my ROI.
She appears to be well-educated and well-read. I ran an online search on her name and came across her website; thank you for sharing.
Hi Dave, what do you guys thing about the Canadian mortgage system vs the US.
In Canada you get a maximum of 5 year fixed rate and most mortgages are 25 years, so every 5 years or less lenders go back to get a new rate while the us gives you 25 years fixed rate.
It just goes to show that getting a mortgage in Canada puts a lot more risk on the homeowner. It's probably also one reason the banking industry is more stable in Canada. As an American I was shocked to learn about how mortgages work in Canada when I moved to Ontario. We are very happy renting for now and don't plan to buy until / unless we move back to America.
Canada 🇨🇦 is ripped off country. Canada 🇨🇦 punished you for working too much and taking all your money in taxes to give it to others who refuse to work.
you can't build a driveway with 300k, you can build a missive house for 300k just would need the land which I'm assuming isn't destroyed. I do agree with there point as a whole though with different values it makes perfect sense.
We did the increased value with insurance on the house when we owned one. Good to know we did do one thing right. Lol. Can you imagine townhouses where the homeowner get the bldg insurance themselves and cannot afford to rebuild but you can but you are in a mess? Condos in NC carry the insurance on the bldg but not all townhouses get the HO policy on whole bldg. that could create big messes in the case of fires and natural disasters.
I’m calling my insurance company now.Never even crossed my mind.👍🏾
Interest rates are at a 40 year high. It’s quiet likely that rates will head lower sometime in the future.
great recap
Is there a good series ov videos or a book or two that would help me with this kind of math ?
I just agreed with Deloney for the first time ever I think... he's absolutely correct that she has created a cloud of their finances in order to justify to herself to buy a house they couldn't afford.
Would have loved more details on finances. Seems the VA has cleared them for a pretty good chunk so I'm sure they are bringing in at least said mortgage in disability.
Is Dave's rule on a mortgage being 25% of take home pay on principal + interest or principal + interest + escrow?
A lot of people are short on their escrow accounts and payments are skyrocketing. That could trigger a house market crash, I hope so because we need one.
The part of the insurance coverage is the Dwelling right?
FYI, VA Loans do not require PMI
Why is a VA loan not in the mix for mortgage types or is it within the category of "Conventional"?
Probably because they're nothing down.
0% down no PMI.
What about usda direct program
I suspect it costs way less to build a house that what it will be sold or currently worth. I think developers will say a house is worth like twice the cost to build it
How do you get a 550K house for 2,500/month? Were they leaving out insurance and taxes?
I pay 1500 for 255k at 4% so depending on interest rates/some benefits i.e. 100% military disability where you don't have property taxes it could be possible
i don't think that's possible, there are a lot of hidden cost they are not according for.
Not possible, 550k 0 down payment is at least $ 4 500 a month
@@ia6980 Yep she probably means quite literally only the mortgage. No insurance, no tax (no escrow), no maintenance planning.
They dirty laugh, made me laugh 😂😂😂 some great advice there 👏🏽👍🏽
Lock in 30 years which you will pay lesser- but add more every month or if ever you have extra money like tax refund- then you can even pay it before 30 years without that much pressure of paying a 15 year mortgage.
Nobody has the discipline to do that. If you get a 30 year you will take 30 years to pay it
@@amireallythatgrumpy6508 few peopl I guess. I am new in this country and I’m about to finish mine In 2 years Godwilling- ( total of 17 instead of 30 years )it’s self disciple like what DAvid say.
Not true at all. We got a 30 year at 6% in 1996. then refinanced about 4 years later to a 15 year at around 4.5-5%. Then refi’d again when rates dropped to 3%. Once covid hit and we stopped travelling, I focused on paying off the last $106k of our mortgage. Did that in just 14 months of gazelle intensity, as DR would say. Overall, it was a total of 25 years. It would have been much less but we foolishly took out some equity along the way.
I got a 30 year loan on a $175k house when I made $42k, and barely saved up 10% down after my first 15 months on the job. Refinanced once to a 15yr to drop the rate, and ended up paying the whole thing off and buying 2acres next store ($26k) within 7 years of the purchase date. All bonuses and most raises went to the principal. It's absolutely feasible if you are both both frugal and disciplined. Most people spend everything they get their hands on....
What dave us talking about is simply subprime mortgage marketed in a subtle shady way ,kinda like an iron fist wrapped in a bandage
No debt besides my house, got my emergency savings, investing 15%, but still deciding whether to save up for a rental or pay of my 3.25 interest rate mortgage…
Pay off your mortgage then get the rental property after.
Sell the truck
Asking for a headache with 2 mortgages.
I'm in the same position! Only debt is mortgage at 3.25, 401k and roth ira maxed out, debating paying mortgage off vs investing on my own the amount I could throw at the house...
I would either bump up your investing percentage or save up to buy real estate. No need to pay down your mortgage early especially considering cash is paying five percent right now.
Need some tips...... I have 6k in my savings account. I have 3 Credit cards and owe a total of $4,700,im paying 0 interest until July 2024. I also have a car loan which I owe $5,460(4%).... I was thinking of leaving $1,000 in my savings account and using the 5k to pay off my credit cards. After I pay those off I was going to use the money I used to pay my credit cards,$350, and add them to the car payment. What are your thoughts???
pay off the car loan in full, then build back savings to $1000, then pay off the credit cards in full.
Do that and cut the cards up
If those credit cards have a chance that all the interest from the entire deferred period is added on than pay them off. Otherwise I would say to pay off the car loan first. Either way you are getting rid of a payment and that should moral boost you to getting rid of the other.
@urbansolis
First, I hope you write an accurate budget each month.
If the credit cards are on an introductory offer, if you don't pay them off in full by June 2024, you will be charged interest from the day you made your first purchase ... not on the current balance. And, I'm sure the interest rate is very high.
Use savings to pay off the credit cards now, in full.
Add what you were paying on the credit cards to your monthly car payment, add more if you can, pay that every month.
When the car is paid off, go back to building your savings. You could add what you were paying on your credit cards and car and deposit that total into savings each month, add more if you want. ...
Credit cards paid off, car paid off and you're building your savings. Good work!
@tamaraliscia3408 Thank you. I just checked, and the only one that had a deferred interest is my best buy CC. This is the one with the smallest amount, so I am attacking it using the snowball method. The others don't seem to have any defered nterests, based on my statements, but I will contact them tomorrow to see if they do. One of the CC was a balance transfer for 4k, which I now I owe 3k. That one is interest-free until Feb 2025. The best buy should be paid by December. The other is interest-free until May 2024. I believe I should have that one paid off by Feb. I'm just confused about how to pay off my car loan without paying a whole lot of interest. How do I send payments directly to the principal? Thanks for your reply:)
Living in the Pacific Northwest, it's painful to see today's housing market!
I'm glad I got in when I did, but I see social workers have to buy half a million dolllar homes, or rent from companies I don't want to discuss!
It's stupid. My home was way over valued last year. I know I couldn't sell it for what it's taxed at!
Interesting. I am in Australia & my house rates are listed lower than the house's actual value!
Banks are collapsing. Inflation out of control. Government out of control. And we should pay off our debts while government keeps spending our money?
Just a wee bit dramatic, don’t you think! There were a handful of banks getting taken over.
You want to see inflation? Look at the late 70s! Inflation is no where near “out of control”.
@@chrisforker7487 Only because we changed the way we measure inflation twice. Once in the 1980's and again in the 1990's. If we measured inflation the way we did in the early 1970's we would be over 15%. The inflation we have today is already worse than the peak inflation we had in the 1970's if we used the same CPI calculation. Just because the government manipulates the numbers to their advantage doesn't make their lying the truth.
yes. Why would all of that matter when you have debt? It isn't like any of it is going away and even as "crazy" as it seems the past had far worst economical messes.
Because you promised you would, Chicken Little. You going to be one of those who defaulted because you no longer like the terms of the deal?
@@cherrypieforbreakfast1499 Actually I have no debt so nothing to default on.
The point I was making is government is not paying their bills. Issuing more credit to pay off the old creditors and taking on more debt is not payment. It is a Ponzi scheme. If the government is fine running a Ponzi scheme and never intends to pay than why should the average Joe care about his debt? The banks own our personal debt, not the merchants where the money was spent. Defaulting only screws over the banks which we will end up bailing out again very soon.
Dave is 100% accurate on the need to review your policy every year. However, he’s off base a little bit with what the homeowners insurance policy actually insures. It does not insure the market value of the home, but rather the replacement cost value, I.e the cost of labor and materials to rebuild the home from the ground up. Home insurance is not meant to protect you from being upside down in an asset like a home, but rather making sure you could reasonably build the same home. For example, if the house only costs 200k to build but the property itself (land, buildings, location, etc) is worth 400k, the insurance company does not owe for that difference in value. I really urge people to read their policies and really pay attention to what it says. As an adjuster, many bad phone calls can be avoided with a little bit of research and time spent on the homeowners end, which includes even us employees of the insurance companies. Side note, the dork next to him saying he can’t get a driveway done for 300k is being hyperbolic at the least, driveways don’t cost 300k lol just more proof that you can be super smart financially and ignorant in other aspects.
Is this a infomercial for insurance?
Is this the same in Canada?
"Visa and MaterCard and American Distress." Why did that make me laugh so hard!
Extra money sent to a lender gives security to the lender, not the homeowner. Plus that extra money you send to the lender, is locked inside the home. If you need that money, you can only access it by borrowing it, or selling the home. If you lose your job, you will not be able to borrow against your home. Keep the extra money OUTSIDE the home, so you have the use and access to the money. Pay your home off with a check, not by giving the banks extra money.
He literally tells people to have a big cash buffer for those scenarios. He’s not telling anyone to pay off the mortgage with every penny they have
I just paid the house off in April…. Now I got to save this money but the wife wants a newer house now 🤦🏾♂️
Get a newer wife? Lol jk.
Please don't do it. Enjoy life now with your paid off mortgage. Your goal now is to save and retire early.
Why would someone want a bigger house after they paid off the mortgage, unless you live in a very tiny house and you wife always wanted a bigger house.
Do you both have children? Do you have enough room for the children? If no children involved then I'm pretty sure the paid off home you both have is just fine! Hope she get her head on straight and enjoy being mortgage free!
Remodel the kitchen and make it look new.
My son bought his first house with an FHA and 10k doen and got a PMI with that. We all assumed when he got to 20% that would drop off, NOPE!!!! He is stuck with it for the life of the loan
Yeah that’s why I prefer conventional.
The PMI goes away after you cross under 80% LTV.
I believe it only gets removed after reaching 20-22% equity if you made a 10% or more down payment. That 10k was likely less than 10% down.
It only gets removed if you refinance and you need to have about 20 percent equity
FHA 10% down you'll have to wait 10 years for PMI to drop off. 9.9% or lower you're stuck with PMI for loan term.
@@driverkpk it doesn’t drop off on its own though you have to refinance.
😂😂😂😂😂😂😂😂😂😂
The 2500 doesn't even include property taxes or insurance. They need to 🏃♂️ 🏃♀️ 🏃♂️ 🏃♀️ 🏃♂️ 🏃♀️
Its fixed for three years then adjusts. The rates could go down by 2 points in 3 years. I'm going with the adjustable Dave sorry.
Adjustable rate mortgages are bad news I remember back in the 1980s when interest rates went to 18 percent so many people lost their homes and had to hand the keys to their homes back to the bank. Yes interest rates were that high back then so this isn’t something new. Three percent mortgages were unheard of for years and years and years. My parents probably had a 2 or 3 percent mortgage back in 1953. Five , six and 7 percent mortgages were normal back in the early 1990s. So I do not understand what the big surprise is at 7 and 8 percent mortgages 30 years later in 2023
Most banks just sell mortgages soon as cleared to Freddy Fannie May etc
Did Dave just say “American Distress” rather than American Express? Lmao!!
There is no PMI on a VA loan
This is correct.
Of course he spread mis-information.
But a $550k mortgage and no money down??? I don’t think that (iffy) $100K income is sufficient
@@Lionheart_He-Man The income qualification factor is the same, whether you have a downpayment or not. 25% of net income doesn't change.
I'm tired of the misinformation that is spread by Dave Ramsey regarding VA mortgages.
Wilma 2005. Always PAY EXTRA to Your Principal on YOUR Loan. MAKE a second Specific CHECK w/ a Memo on that PRINCIPAL PAYMENT!!! KEEP Records!!🕵️📝🌞🌅
Or just pay it online and put a toc in the box to apply it to the principal. Then you are credited for the payment that day. 👍
Imagine all the people that missed 2-4% mortgages waiting until they could afford a 15 year mortgage. These people will never be able to buy unless there is a severe recession, all bc they listened to Dave's bs.
I'm a Veteran. Dave Ramsey is providing bad advice to Veterans when he speaks against VA mortgages. There is NO PMI and disabled Veterans pay NO fees. His advise tells us to instead throw money away on rent, when we could purchase a home and build equity. If the mortgage does not exceed 25% of net income, why would you rent or make a 20% downpayment? Dave Ramsey needs to stop spreading misinformation.
I will not be lazy to look for new coverage for my house this year thanks guy been lazy for the SAME IN TEN YEARS!!
"Millions!" The banks
Hey mortgage is 2500$ for a $550,000 property without a DP? What math is this
550k @3.5% 30 yr amort is $2470
Did she forget about property taxes
Yea the math is bogus. More like $3500 + with todays rate plus taxes and insurance.
I had one try to sell me the 3-2-1 mortgage when rates went up in 2022. Never talked to him again
I agree with not getting into debt on unnecessary items, but Ramsey will forever be wrong about credit cards. A well managed credit card will not only give you better interest rates on mortgages, but also have lots of perks (I.e airline points, cashback) which are effectively free if you pay off the balance in full and don’t incur interest.
Not that I agree w him because I pay off mines every month. He is just saying he doesn’t like credit cards because you are more likely to spend more with a credit card and he is all about saving.
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Awesome, thanks 😊
2500.00 payment on a 550,000.00 house with nothing down? HOW?? HOW??
True. A $550,000 house with $0 dowm payment with taxes and insurance will far exceed $2,500/mo.
Can you talk about buying a land on payment
I wish you would explain that student loans are a DAILY amortization........ So these people with these loans really "get it".
First time home buyer: i had credit union rep try to push me into an ARM. Wouldnt do it myself.
@11:17- I’m an ins. broker in MI: one client’s home is insured for 518K w/ 125% Replacement Cost. Re-quoting other carriers, replacement cost is 680K. If his house burns-down, he’s ooo-kaaay…hopefully. Don’t want to sleep under a “hopefully” though.
You see, what has happening to tons of people who followed Dave’s mortgage advice are now looking at the most unaffordable housing market in history. Saving up 20% and making sure you can afford a 15 year mortgage was always a very difficult task for most Americans to pull off. If you are trying to save up $20-60k to put 20% down on a house would take years for a lot of people. If you went in with 5-10% in 2018, you would have the PMI, but you would also have a house. This is a horrible housing market for buyers and with the lack of supply, I don’t see home prices coming down anytime soon.
If you have no other debt and 2 decent incomes, you can easily make a mortgage that is 25-30% of your take home pay without issue. Dave is way too strict with his mortgage advice and that has probably cost a lot of people having been able to buy a house before the market went crazy and are likely looking at never being able to buy this decade.
My husband and I were first time home buyers in 2018… single income fam with 2 kids. we live near Austin tx and it was insane buying a house. We were outbid above asking price several times. We ended up getting a zero down loan in a 199k house. We were house poor for the first year but we survived. Now, 5 years later we have over $100k in equity because our home value has increased so much. We’re planning to move into a slightly bigger house soon bc we have 4 kids now and want another bedroom. We would’ve rented forever if we hadn’t gotten into the housing market back then! All that to say…. Advice is helpful but you still have to make decisions (and sacrifices) based on your personal situation!
When the illegals get booted out the market will open up. Breathe.
I'm waiting on Home Prices 🏡 to Drop. Florida. Sold my townhouse in Vero Beach, Florida. Should I pay off the student loan $8,000 and an SBA loan 25,000 off. Never ever paid anything that big off before
Depends on your age, their interest rate and your risk tolerance.