What is Dave Ramsey’s feelings on using debt for a house?
by admin ~ June 17th, 2008 . Filed under: Personal Finance .
mannix_mannix_mannix asked:
I know he is against personal debt at all costs, so I am wondering if he has an exception in his advice for buying a home?
I know he is against personal debt at all costs, so I am wondering if he has an exception in his advice for buying a home?
If so, how does he explain this? I am mainly trying to understand if he has one guiding principle for debt or not.
Stuart Carton
June 19th, 2008 at 9:21 pm
He advises that if you do have to get a mortgage to not get one for more than 15 years. If you can’t pay it off in 15 years, don’t buy it.
June 20th, 2008 at 12:52 pm
He won’t yell at you if you have at least 20% down, no more than 25% of your take home pay (not gross) and a 15 year fixed rate mortgage, don’t buy points.
He prefers everyone to do the 100% down method to purchase a home. He is also a realist and knows that is impractacal so he made the above rule.