[Alberta's Child]

I like most of Ramsey’s financial advice, but on this one he is out to lunch. Most people who follow his advice will never need to buy a home because they will be in their 50s with grown kids by the time they save enough money to buy one.

And his advice about 15-year mortgages is idiotic. I would never advise anyone to take out a 15-year mortgage even if they can easily afford the payments. Except in rare cases, you are always better paying down a 30-year mortgage and putting the difference between the 15-year payment and the 30-year payment aside in a pool of diversified investments. That way, you get to Year 15 and you may find that you have more than enough money on the side to pay off the remaining balance on the mortgage.

My one criticism of Ramsey is that he seems to have no concept of what value LIQUIDITY has for most people.

[where's_the_Outrage?]

I can somewhat see your point as my last mortgage was a 30 year, the reason being was the .5% difference in the interest rate from the 15 year. That was in 2020 and I have since paid off the mortgage.

[lepton]

Except in rare cases, you are always better paying down a 30-year mortgage and putting the difference between the 15-year payment and the 30-year payment aside in a pool of diversified investments.

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Similar to my thoughts, though it takes most people a very long time to get to where they can actually set aside that difference. There’s also accumulating the rainy-day fund - to get initial liquidity, then putting aside money for those diversified investments to get you towards buying the house - though there you still have to pay for a place for a little while.