This Experiment Could Cost You Hundreds of Thousands
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- เผยแพร่เมื่อ 22 ก.ค. 2024
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Buying a home can seem impossible these days-but could Zillow be coming to the rescue? In this episode, I’m taking a hard look at their latest experiment to make buying a home feel easier right now.
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George Kamel is a personal finance expert and co-host of The Ramsey Show. Following Ramsey’s proven money plan, George went from negative net worth to a millionaire in under 10 years. His goal is to help people spend less, save more, and avoid money traps so they can live a life with more margin, options and freedom.
This channel will simplify complex money topics, bust money myths with actual facts, and debunk the stupid financial advice you're seeing in your social media feed. All with a healthy dose of pop culture, humor, and snark.
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My unsolicited advice. I was single at the time. I managed to save 3 months of emergency funds. 2 yrs after I moved into my house. I was diagnosed with cancer. The following year as I was going back to the hospital and doctors. To check for any remaining cancer cells. New management came in, I lost my job. Fortunately I had that money saved up. I was cleared from Doctors and was able to find another job 2 months later. I cannot stress enough about having an emergency funds. And I did get a 30 yr mortgage. Made extra payments as I could. Stopped making extra payments, when I was going through this. The mortgage was paid off in 19yrs.
Hope you’re all better now 🙏🏼
I'm sorry to hear that. I hope you're okay now.
Did you survive?
Good bless you!
@@toeknee5565no, they didn’t survive unfortunately. they’re commenting from beyond the grave
Bought a home with FHA during the recent boom and run up. We wouldn't have been able to afford this or any home if we had waited to save more than 3%.
Hey George, so glad to see you're still employed. The world is definitely a better place with your videos in it!
I waited until I was almost 50 to buy a house. I had a good job, and paid off my credit cards, and saved $35,000. When I found the house I put 20% down, and took a 15 year loan at 3%.
About 2 years after buying it the company I worked for (for well over 20 years) closed without warning. Soooo glad I made it so my mortgage payment was as low as it is so I could still scrape by while money was tight. Really set myself up well as far as that goes.
How much more flexible would things have been if you did a 30 year mortgage instead of a 15. You never know what will happen that those few extra hundred a month could make a huge difference. You can always make higher payments when things are good, but you can’t make less then the minimum payment.
@@barnabusdoyle4930I agree I don't understand the 15 year mortgage. Just pay the 30 year off sooner and you'll have more cushion if emergencies come up.
As someone who probably did the whole house buying thing 100% wrong on my first home. Taking out loans vs 401k and such, 8 years later I feel we were much closer to doing it correctly for our second home. Used the equity to put down 20%. Honestly FHA helped me get into a first home, and as such I think it was good for that. Now when a person starts thinking second home, the 20% should not even be a question. Without that, I’d recommend just staying where you are. As for 1% down. I don’t even want to imagine trying to stay in that home and paying that interest over 30 years. I’d stay as far away from that as possible.
Even if you are financially ready to buy a house, it still might not be a good idea.
Yo Kamel love your videos, the format is hilarious! Kudos to the producers, writers and editors! And of course your delivery is impeccable! Keep cranking them out!
I dived into buying a home in early 2022 with a 4.375% interest rate and only put down 3% purely for the fact that the rising interest rates seemed to have no end in sight. I cant even fathom having saved up more to be smacked in the face with the 7+% interest rates today after coming up with the 20%. That 1% down payment seems borderline criminal in how it will prey on people. I can't imagine how that could even be legal knowing how many people will likely default and end up losing those homes. Its definitely a sad state of affairs for sure.
I'll give you 4 dollars if you give me ten. I'm in the wrong business. 😂
George Kamel-The amount of work you and your colleagues put into this video must be substantial! The research, the humor, the editing are all on point. The set is also very well thought out. I appreciate it all. After halfway, the fast pace of the video and all the cut aways wore me out, BUT, i just muted it and let it play until the end. That is not a back-handed compliment! I appreciate your hard work and talent so much that i want you to get my "view". You are the only person on TH-cam who I will do that for! Keep up the hard work, and congratulate your team for a very polished video!
Less cutaways, please!
These videos are so well presented and captivating. as an '86er all the references helped keep my attention :) I found the information super helpful. thank you!
I don’t agree that VA loan is bad… yes it’s an extra cost for va inspection but that is more assurance that the house is in Good standing. The closings cost difference is only about $1k -$2k - having purchase 4 homes using VA I never had an issue.
Love your videos, inspires me to keep going. Thanks 🙏🏼
The Zillow program is so stupid George! you're so correct
Yes it is, but sadly thousands of people will do it because they won't do what what they need to get out of debt and save up a sizeable down payment like they should, people always want a shortcut, and they don't care how much itll cost as long as they get to have it now, welcome to being normal in America today....
What do you expect. This is capitalism. We live in a society where corporations don’t give a shit and will make money off the poorest people because it’s easier when they’re desperate or have no knowledge of what they’re getting into.
I’m stupid with money but I fully understand the workings of it all. Love me some credit cards that take days or weeks or months to max out and years to pay off. This is sarcastic truth by the way. I have debt I need to get rid of and I’m one of millions who should never have credit cards again.
Very nice video, George! Thank you.
Yeah, it's a total scam. Thanks for this video.
How is a VA loan anything like this? VA loans are very favorable to the borrower and very safe for the buyer and lender.
Not really, my brother and SIL paid 6 THOUSAND just in fees for their VA loan, they would have been better off getting a conventional!! We bought around the same time and the interest rates were the same!
If they used a VA loan, they put nothing down (or could’ve), the house had to pass a federal inspection to insure the house wasn’t a dumpster fire and would reasonably appraise for what they were paying (or more), the lender would give them a better rate with the same credit (because the federal government backs the loan), and the seller would know there’d be no complications in closing (as long as nobody was trying to hide anything).
A VA loan is quite possibly (see: almost certainly) the best benefit a veteran gets and it’s not particularly close.
You can also reuse it and combine it with other loans should you so choose.
I didn't know Zillow bought homes. I only thought they were like a listing platform. I see them now more as a disguised bank lol
THey have been trying to figure out ways to grow profits and just being a web site that sells nothing was not a way to do that so they got into the flipping business and discovered it was harder than they thought it was and lost lots of money so are now realizing the easiest way to make $$ in real estate is to be the bank.
Thanks for the response! That makes a lot of sense. I feel "becoming the bank" is a common theme. I remember there being a video about how even Starbucks is a bank through their app. Seems like companies are trying to find ways in which they can become the bank through an app or some other media using their main business as a front like Starbucks and coffee.@@edwardrhoads7283
This is the worst time ever to buy a house, yet people still keep doing this.
9:49 25% max of take home pay on 15 year loan excludes virtually all first time home buyers until something changes here.
Not true, and the Ramsey show and FB page make clear that lots of people are doing this. We did. You have to find ways to increase your income, pay off debt, and save for a large enough down payment to make the math check out. It's not easy and might take longer than you want, but definitely possible.
@@cjamesbottlike 1% of average people are doing this. You know this is, like the OP said, virtually impossible for most.
@@LeinaVance it's the ideal situation besides just paying in cash, which I agree the 100% down plan would be very, very hard for most. I think the ideal is worth teaching and reaching for. Sure not everyone can do it with their current situation, but the point is to follow the ENTIRE Ramsey plan, which will enable it to make changes that will eventually allow you to get there. It takes effort and sacrifice, but most people have the potential, not just 1%.
Legend has it George is still bopping to this day
Zillow should not be allowed to buy homes, along with out of country investors, other corporate investors.
Dear young Mr. Kamel. Thankful for your hilarious🤣 and encouraging🤗 insights. Someone I can send to my twenty something son who won't listen to us "old parents" 🤣
We are a family of 10 and bought our first house 7 years ago. It’s 3 bedrooms, 2 baths and way to small for our family size. Even though we are approved for a big mortgage, I’ll keep this one until the rates come down and we have more money saved. Heck might even keep the home we are currently in. These kids won’t be here forever!
Love this channel!
Love your Show - Smart and Witty 😊😊
Talented editors!
Tasty Nuggets of mortgage info!
I LOVE your channel, George!!!
I've followed Ramsey since mid-90's, because my parents got us into listening on the radio back in the day, and watching him "bajar la caña", as the Gauchos in Argentina would say and seeing Rachel's reactive non-reaction was making me both cringe and laugh at the same time.
Oh man i can only imagine the tongue lashing you got from that video about 4% stuff. Hahahaha!
Anyway, I'm really happy to see you still here. Your videos are amazing!
My VA loan experience has been totally different than the Ramsey experience... I'm thankful I've used it in the past...it was always easy with a lower interest rate than the conventional.
Yeah. My VA loan is great; allowed us to have more cash for repairs after closing etc. And the interest is super low, though I don't know if that has anything to do with VA vs conventional.
I bought my first piece of property at 18 and promptly lost it at 19 because I followed none of these basic principles to have a decent down payment with payment less than 25% of income. I learned the hard way and now a BSM I took the scenic route to being a millionaire. 😅
being in chicago alot of folks always talk about FHA's, would be cool to do a vid on comparison of all these different types of loans (not saying they're good ideas but the more informed and educated the better)
Random but was stoked to see my friend's video from the wacky inflatable arm guy! She is a legend!
Great video 🎉
> you would have been better just renting
See the issue is that my rental payment would have been about the same amount. So I can flush $2,000 per mo down the toilet renting, or I can buy for $2,200 per mo and have ~$400 in equity per mo (a rate which will grow over the life of the loan). Further, I can refinance down the line (assuming interest rates come down) to make those numbers more in my favor.
I get what you're trying to say, but I also feel this advice is out of touch with the way the rental market has gone over recent years. I have a co-worker who's apt complex tried to raise her rent ~32% this year. After some negotiating, she got the increase down to a ~14% increase, but you know her income didn't grow anywhere near that amount.
But you are not throwing away money on rent.
Here's an example using a $400,000 house and the rent you mentioned.
If you only put down 3% as Zillow would suggest, then on a 30 year mortgage your monthly payment with estimated taxes and expenses included would be about $3700 and total cost of the house after 30 years is $1.3M with $630,000 being interest. If you save just $1200 of that difference it will take you 3.33 years to save up a 20% down payment. Great now if you take out that same 30 year mortgage you have a monthly payment of $3200 and total cost is $1.1M saving you $200,000 dollars in interest or about $60,000 for each year you rented. By renting you saved money in the long run.
Now if you do what the George recommends and do a 15 year fixed rate loan, then after saving up your 20% down payment for 3.33 years your monthly mortgage payment would be $3900. That's only $200 more than if you did the 3% for 30 year mortgage. Your total cost for the 15 year mortgage is $705,000, that's a savings of $600,000 dollars! That means by renting you saved yourself (paid yourself) about $180,000 each of those 3.33 years! That's amazing. And to me even if it feels like I'm missing out it's worth it for $600,000.
Let me know what you think, maybe I made a mistake in my math but this was eye opening to me.
Anyone following Ramsey ways of buying a house. I’m currently in the process of buying a house. I did manual underwriting with a 45% down payment which I’ve been saving for a few years. This is my second house (first house I rent out to my brother and is paid off).
There’s no way I would have been able to do this if I didn’t find DR.
I plan on having the new house paid off in 5 years.
Damn, I hate how much this video spoke to my millennial brain. It had enough call backs to shit that I know to make me laugh/smile, while still getting the full point across. Kudos.
Great information. I love the way you present it. 😅
Great video! I hope you bail on Ramsey Solutions, Dave’s pathetic little tantrum the other day over your video would have made me quit. Your content can stand on its own!
It doesn't make sense if you're 70 years old. The caller forgot to mention they were talking about a 30/40 year old retiring and needing to withdraw for 40 to 50 years.
The I Think You Should Leave clip😂
PMI is not forever. After 3 yrs of paying, you should be below 80% of the load.
Will have to pay to determine the value of your home so the bank can see the numbers .
Bout $500 so your PMI can be removed
Not as bad as you project if the person is able to refinance when the rates come down. A very common lever utilized. I did just that when purchasing my first home. The rates will come down at some point.
Growing up no one ever told me that I needed a down payment for a house. Well not true, I knew but didn't know how much it would be. I saved up late, else I would have easily been able to do 20% if I started saving ten years ago :/
This is exactly why I’m having my high schooler put money away now out of his checks.
@@domingodelgado3944 that's amazing, start Early!!! It'll save you the headache I had last year when I was 33
Very blessed my first home I used FHA loan to buy a duplex I lived in one side and rent the other ,I put 12k down (3.5%) after the plandemic rents went up now one door covers the entire mortgage, and I have multiple six figures of equity as well . Thanks Freddie Mae
PICKET LINE
GAH
whew, had to get that out lol
30 year mortgages are death, especially with interest rates where they are today. Who in their right mind would pay 2.5x the total of what the actual house is worth. That would be about equivalent to having a 40% auto loan to pay 2.5x of what a car is worth. Highway robbery.
There are benefits to being able to get into a house with little down. 5% is good enough to get a conventional loan. Remember, you are paying a mortgage no matter if you are renting or own the property. You just end up paying for your landlord’s mortgage and house if you are stuck renting while you save up $40k or more. It’s more important to buy a house you can afford, have little to no debt going into the sale and have an emergency fund of some kind. The amount of equity you have in your home only matters if you are wanting to refinance it or borrow on the equity in a HELOC.
Thoughts on a USDA loan for rural communities that require zero down?
25% of your take home living in Boston is the most laughable thing I’ve ever heard in my life! 😂😂😂
Yup, same up in NH... Not possible as a single person!
It's always super exciting to see what inventions the US market comes up with, because with a few years of delay those offers will come to Germany too 😅
So to be clear, this particular product is maybe slightly better than other 3% down mortgages, correct? You do still get to save the 2/3 of your down payment, and their don’t appear to be any other specific negatives. Just that the Ramsey team is against putting so little Down in general
Hilarious intro!
And if you added an extra 10% down you would pay 60k less interest. So, of course zillow wants you to put just enough down to be a sunk cost fallocy. They want more interest.
That is why when I do seller financing on a home to an investor I do interest only loans. No pay of principle means I get more interest... (note due to dodd frank you cannot do those for non investors).
Has Dave apologized to you yet?? He better ? 😢😢❤❤
Is it “picket line”
How can you say "you would have been way better off just renting" the payment for $388,000 30yr @ 8% is 2,847 a month. as you stated Zillow stated this is for people who can afford the higher payment but struggle to get a down payment. Do you think a landlord renting a $400,000 home out is going to be charging less then $2800 a month? Probably not and if so not by much. So my question is how would a person be better off spending 1M over 30 years for rent rather then spending 1M buying their own place and building equity? I agree that a larger down payment is better then a lower one and will result in a lower cost of ownership but it seems a lower down payment is still better then just renting for the next 30 years.
The large home builders are close to dropping their money into the loan market. Look for them to undercut the market rate by 1.5 to 2%. Price goes up, but you get a lower interest rate. More money hits the builder side of the company, in exchange for risk to the finance side.
What are you talking about? DHI Mortgage, for example, is owned by DR Horton.
I’m just happy I have a 2.5% mortgage.
You can put as little down as 3% down on a conventional loan, so I don't understand demonizing FHA loans and other small down deposit loans. These loans help the average person get into home ownership and not lose out due to having to save large amounts for a down deposit.
I don’t think Zillow is going to like you very much after this.
Market is corrupt banksters get bailed out and you lose your house just like in 2008. Politicians get a buy stocks probably with insider information and you get 35 years of stress dealing with the market.
A prairie schooner🤣🤣🤣🤣🤣🤣🤣🤣
@georgekamel 2 ads in the first 3 & 1/2 minutes is a little much, give us more content first! Also I think your audience needed a more classic bop-it I didn’t even recognize that new version 😂
Housing market Its about to crash 😂😂😂
VERY FUNNY and CLEVER George!!!
If you having trouble with down-payment or putting less then 10%
YOU BETTER NOT BE BUYING IN A HOA.
HOA WILL SELL YOUR HOME FOR NOT FOLLOWING THE RULES
I hope Mr Ramsey doesn’t disagree with this one
Putting nothing done means they are better appreciation and trying to invest using other peoples money
If they want us to buy more homes, LOWER THE PRICES. Im starting to see more reasonable pricing in my area again. Just bought a new used car cash, and am now aggressively building my savings back up. Hopefully I’ll be able to buy then…
Sharknado 😂😂😂
This just isn't a great market for the majority of people to buy a home, specifically first time buyers. On a $350k home (which is probably a starter home in most major cities) with 20% down ($70k) and a 15 year mortgage, you're looking at about 3k a month, mortgage alone. You've gotta be taking home about $150k to follow these recommended guidelines. Now just ain't it for most people and that really sucks
Yeah, the money guys state first time buyers should try for 3%, but still want you to make sure you can afford your monthly expenses. Unfortunately, that still rules out most, even with a 30 year.
How did that beating from Dave feel?
Zillow isn't going to keep the loan. They'll sell it to Fannie or Freddie.
I think Ramsey’s recommendation for a 15 year mortgage and the mortgage costing 25% or less of your take home pay is extremely cautious. If it’s affordable for you, great. But for someone like me who is from the coast of California and made 45k when I got my house in 2021, those numbers are laughably unrealistic.
A lot of people in more expensive areas or with more middling salaries will never get into even a starter home in their area by waiting for such rosy circumstances.
My recommendation is to not worry about a 30 year fixed. And not worry about the price being over 25% of your take-home as long as you have an emergency fund, can still invest 20% of your salary and max out a Roth while paying for the mortgage and your other needs on your income, I think you’re alright.
Also I think it’s fine to add expected income into your equation if your plan from the beginning is to rent out some of the space to tenants. Just check some comparison rentals in your area and be conservative with the predicted rental income. In some cases it makes more sense to pay about 10% more for an extra bedroom to rent out rather than taking the cheaper purchase price and less rental income.
I do think that someone should put over 15% down on a first home and preferably 20% to avoid PMI.
And I think if you have a supportive family, you can use their support as an initial emergency fund if you get their OK if you have to spend your emergency fund on the home purchase. I think losing a window of home affordability is an emergency.
Another good general principle is that if the interest rates are less than 4 or 5%, you can and should expect to be more aggressive than when the interest rates are 7% or higher. Just make sure to never buy any home by waiving contingencies. Even if the interest rate is 1%. You want to be able to back out of deal after a proper home inspection. A lot of desperate buyers got burned around 2020-2022 by waiving contingencies when they signed for a home when the market was super hot.
You're better off renting if rents never increase over the next 15-30 yrs. Good luck with that.
I'll never understand why Team Ramsey hates math. Interest rates matter. I've bought 3 homes (sold 2, I only own my current home) and I've bought them all with 0% down VA loans under 5%.
At less than 5%, regardless of the term (15, 20, 30 year) it doesn't matter - it doesn't make sense to pay it early. For each dollar that you think "I could use this to pay down my mortgage faster" you could also put it into an index fund tied to the S&P 500 and most likely get around 8%. That doesn't mean spend it on a new apple watch or Taquitos, but paying debt early is lighting 3% of your potential earnings on fire.
Last I checked, 8 is more than 5. Especially in high inflationary times like these, if you've got a low interest rate loan, then your bank is begging you to pay it off faster because they're losing purchasing power on your debt.
Get educated, and make good decisions based on the balance of interest cost vs opportunity cost.
You're only trying to optimize having the just money. Dave's program does involve building wealth, but it's not all about that. His plan is designed to optimize financial peace, and the thought of being 100% debt free to me is so peaceful. Already following his plan you put 15% of your gross income into retirement and will easily retire a millionaire. And once you've paid the house off, you can invest much more than that 15% too.
it's about peace. So that you don't have to sleep under the bridge if you have a bad back at 50. so that you don't have to declare bankruptcy if new children arrive unexpectedly. In addition, it may well be that the capital investment will be in the red for 10 years.
I just don't see how throwing away money provides more peace than having it.
@cjamesbott Yep. This year we will have invested over $67K stock mutual funds after paying off the house in March. Imagine what that will be next year with zero mortgage. The neigh sayers forget that part!😅
@@seantaylor6691 it's not "throwing away money". If that were the case, you should always "borrow on margin", i.e. borrow money to invest it at a higher rate.
Would you take out another mortgage on your home so that you could invest more in the market? I sure wouldn't! Because the risk associated to this hurts my peace, even if mathematically I would likely come out ahead.
Gotta say, like the actual financial content but isn’t it time to move on from the video inserts. Too much, too distracting. Another note, many of us pay for premium TH-cam, having to watch your ads that seem to get longer and longer is super annoying when I’m paying for an ad free experience.
Everything is an ad unfortunately
Agree this is an awful investment device. However, notice how for your last example on Rent Vs. Buy you utilize a 6.25% loan which is not currently possible... This paints your last argument as a possible option. which it isn't currently. Now with this you're using the accurate 8% interest rates.
Funny
4% of the time, George is right 8% of the time.
6:31 not entirely accurate, not taking into account the time value of money
They’re also probably not holding onto these notes, they are probably selling them off after originating them
GEORGE KAMEL your so much more than being a Dave Ramsey clone be your own true self and fly birdy fly to your real self I love you the way you are quit trying to be someone else time to pack up and leave the nest and sore with Eagles😊
Did daddy Dave make you take down your 4% rule video?
Fire your editor. This video is giving me an aneurysm. The number of zip cuts and audio clips just shoved into this is insane. No one's going to be able to focus on this and retain any information
You pay 1.000.000 for a 450k house 30 years ago, so currently 800-900k, don’t play tricks, your point holds, but let’s give all the info
I don't understand, so you think it is BETTER for someone to rent for 30 years just because this deal with 1% down gives "Zillow" the 8% interest? I mean, USUALLY, with my experience, mortgage payment is only about 10% higher than rent of same type of property or even sometimes HIGHER (usually in a few years when rent continuously goes up but interest tend to stay the same with fixed rate loan). Like in your hypothetical scenario, $400k home. Mortgage at 8% with 3% down will be $2861/mo + Tax (let's say it is about $6k/yr - depending on state, it may be higher or lower) = $500/mo = $3361/mo. All together. Typical rent is USUALLY about 0.8% value of the house in lower end so let's say rent is $3200 for same home. Now, the hypothetical person will save about $161/mo by renting instead of owning. Let's say he/she waits until he she can muster 20% of the price of the home for downpayment = $80k. (assuming house does not go up in value AT ALL), now, at $161/mo, one will need to save about 41 YEARS to save up for down payment of 20%, about 11 years AFTER the hypothetical person have literally paid off the home and owns the house even AFTER paying the 600k interest. Now, that person has $400k equity while the renter does not even have $80k cash saved up after 30 years. Who is doing better? The home buyer through this plan can always refinance if rate goes down BUT will pay relatively flat rate even if rates go up (Yes, tax portion will probably go up). Where as I am pretty sure the rent will just keep go up.
Only potential issue here is that one COULD argue that if he/she could not have saved up 20% downpayment, can he/she be able to afford keep paying on the house with 3% down payment? My first home was bought with 3% downpayment with 8% interest and I was GLAD looking back that I made that plunge 23 yrs ago. There are MANY other financial issues that you can talk about, this program, for some people, is a good program. (Of course, devil is in the detail, so please do read the fine prints as I don't know more detail than what was said in this video)
At my age buying a house just makes no sense. Even if I put 100k down and manage to find a house that gives me a 300k mortgage and I put it on a 15 year I'll spend more than 500k total on that mortgage, add all the other expenses that come with owning a home and that total could easily be over 600k (+the 100k I already put down) and I'll be 72 years old. If my rent goes up an average of 5% (and it's done less than that over the 13 years I've been here) I figure my total for rent payments will be 166k over 15 years, 432k less than buying and owning a home. I just wish this place had a garage, that's my only complaint, I'm not going to spend over 400 hundred thousand dollars to own a garage.
you can not have everything. I live as a renter in a small apartment myself, which is not perfect. But whenever people ask me why I don't move, I say that I won't work 4 more days a month to have a balcony and more storage space. But maybe I'll buy a medium-sized apartment in cash at some point, because I'm saving a lot of money with my low rent (I think after 15 years in this rental apartment I've saved so much in rent that I have enough to buy a slightly larger one).
I agree. Where I live, there is rent control, so renting is so much more affordable than buying. We pay $950 per month to rent a 3-bedroom house that we have been in for 13 years. If we bought a 3-bedroom house, we would pay $3,700 per month for the mortgage and insurance and taxes. That would be more than half our net income. We don't plan to ever buy a house. And the money we save allows us to invest more.
Can I finance my 1% down payment
No, your down payment and closing costs cannot be financed, and I wouldn't buy a house until you change your mindset away from financing everything you want!
@bettysmith4527 nah, I'll just use my credit card for the $4,000 down payment
@bettysmith4527 I make $30k a year, bud. The bank will easily approve me for a $400k house, so I'll do whatever I want.
The Bigger The Better.... That's What She Said.
The intro to this video took so long I lost interest in the actual video. 😂
Move back with your parents to save for that down-payment
Surprised Dave has let George have a little personality?
you lost me at "having to live in AZ"
I would have shown the total difference in how much interest you end up paying by putting the 3% down opposed to 10% or 20%. The total of course was $634k by the end of the loan but it would be more impactful to show the savings on interest if you put the 10% down...or even 5% down. Like, they save people $8k but in the end you pay an extra $60k in interest due to 3% down instead of 10%. Something like that. I guess I could do the math myself.
How bad is it to have a boss like Dave Ramsey that doesn't understand the basic math of the 4% rule? You would think someone giving financial advice understands a principle as basic as sequence of returns risk.
Please explain it for us stupid people?
Really? A real worth of $600 million and you think he doesn't understand the 4% rule? SMH. What scam are you pushing?
@@USMC6976 yep. Stupid people can become multi millionaires. It happens. He did go bankrupt.
He doesn't understand it. That's just a fact.
@@johnrusso4943 Are you intentionally being naive. You do know his bankruptcy occurred BEFORE he came up with this method. A time when he believed all those myths about borrowing.
So his going bankrupt isn't the "gotcha" you're trying to make it out to be. And when you're 65 - 70 years old, unless you want to leave a lot of your wealth to the kids, or someone else, 4% is too conservative.
@USMC6976 do you even know Ramsey's position on the 4% rule? He believes it should be 8%!
History shows an 8% withdrawal will have someone going broke within 30 years 60% of the time. That's facts and numbers.
I don't care if you worship Dave like a cult leader. He is wrong and his misinformation is going to destroy people.
First
The new subprime housing crisis, what future sitting President will be blamed for this lol.
The 60 second, self promoting ad on top of YT ads and your 20 seconds begging for subs, likes and shares is perfect amount of crap that I'll block your channel and unsubscribe.
And the constant cut aways to dumb clips make his videos hard to sit through.
You might as well stop watching youtube videos, they all do the self promoting
Its literally like a VA loan.