Free Republic
Browse · Search
News/Activism
Topics · Post Article

Skip to comments.

'You don't get a pass on math': Homebuyers call out Dave Ramsey's 'unrealistic' mortgage advice. Are they right?
moneywise ^ | Bethan Moorcraft

Posted on 03/07/2024 9:26:22 AM PST by where's_the_Outrage?

click here to read article


Navigation: use the links below to view more comments.
first previous 1-20 ... 81-100101-120121-140 ... 181-187 next last
To: fatboy

Agree with all you've said. On this point, "But having said all that I don’t care what other people do with their money.", keep in mind those folks vote and historically they've voted to take money out of your pocket and gift it to them. If only we could dispense with the financial "safety net" government *claims* to provide, but does not, and should not. A lifetime of poor financial decisions should be financially painful.


101 posted on 03/07/2024 10:50:21 AM PST by so_real ( "The Congress of the United States recommends and approves the Holy Bible for use in all schools.")
[ Post Reply | Private Reply | To 35 | View Replies]

To: woodbutcher1963

My wife got a 1972 Dodge Demon in October 1971 and drove it daily until selling it in 2006 with original engine. Our annual cost on it was piddly as it was so reliable and easy to work on. In 1974 I put Midas lifetime shocks, muffler and brakes on it. I don’t even know how many free replacements we got. ha ha!. In the early 80s I put a lifetime alternator and master cylinder on it. In the late 80s a friend of mine was managing a Aamco tranny shop and for $750 we got a lifetime transmission.

My wife was 17 when she got the Dodge and 54 when we sold it and she got the second car of her life, a 2007 Sonata which she is still driving.

We figured that car saved us enough money over 34 years to cover the cost of a home.


102 posted on 03/07/2024 10:50:57 AM PST by ChildOfThe60s ("If you can remember the 60s....you weren't really there")
[ Post Reply | Private Reply | To 32 | View Replies]

To: where's_the_Outrage?

This is a classic case of killing the messenger because the message is not what you want to hear. Bottom line - Most can’t afford to buy a conventional family home anymore. The Left has wrecked the dream of home ownership too.


103 posted on 03/07/2024 11:04:12 AM PST by iontheball
[ Post Reply | Private Reply | To 1 | View Replies]

To: AbolishCSEU

Neither son knows anyone who voted Democrat except one and he’s voting Trump this year.


104 posted on 03/07/2024 11:04:27 AM PST by LilFarmer
[ Post Reply | Private Reply | To 80 | View Replies]

To: iontheball

The Left has wrecked the dream of home ownership too.


All part of the plan.


105 posted on 03/07/2024 11:06:49 AM PST by dfwgator (Endut! Hoch Hech!)
[ Post Reply | Private Reply | To 103 | View Replies]

To: Alvin Diogenes

Even living with the parents isn’t a bad idea these days.

Better to keep the wealth within the family, rather than making some other family richer by paying them rent.


106 posted on 03/07/2024 11:10:24 AM PST by dfwgator (Endut! Hoch Hech!)
[ Post Reply | Private Reply | To 96 | View Replies]

To: where's_the_Outrage?
With a 15-year fixed rate mortgage at 6.66% — the rate as of Feb. 14 —

That ought to tell you something right there.

666: The Number of the Beast

107 posted on 03/07/2024 11:11:15 AM PST by Albion Wilde (Either ‘the Deep State destroys America, or we destroy the Deep State.’ --Donald Trump)
[ Post Reply | Private Reply | To 1 | View Replies]

To: Albion Wilde

107 - 6 = 101

101 x 6 = 606

606 + 6 x 10 = 666!


108 posted on 03/07/2024 11:14:42 AM PST by TexasGator
[ Post Reply | Private Reply | To 107 | View Replies]

To: where's_the_Outrage?

More people need to be homeowners.
Dave has done good ideas but his homebuyer advice isn’t always realistic .
I work in this business .
Buying a home is a big wake-up call to many .
Once they own a home it makes people grow up and make better decisions .
Waiting until everything is perfect just isn’t realistic of a good idea.
Sorry Dave


109 posted on 03/07/2024 11:22:00 AM PST by HereInTheHeartland (Have you seen Joe Biden's picture on a milk carton?)
[ Post Reply | Private Reply | To 1 | View Replies]

To: where's_the_Outrage?

Off topic side bar, and maybe no one will care, but Ramsey lost me the night I heard him tell a parent that trade school was just not a very good plan, that only dumb people who can’t do college work become electricians or plumbers or the like, and did the parent really want his child to not have the best in life and be looked down by peers.

Also, he tells everyone that children should not live with their parents after a certain age, and to do so is to be a loser. As a real estate investor this advice profits Dave Ramsey but not families or adult children.

Dave may have been genuine at one time. His time is past. Most if not all of his shows are handed off to his younger employees now. And his daughter has some junk legal things he pawns off.

I only listen to his show by accident and only long enough to make sure it’s as bad as I think it is.


110 posted on 03/07/2024 11:23:06 AM PST by CaptainPhilFan ( Bring back insane asylums)
[ Post Reply | Private Reply | To 1 | View Replies]

To: Responsibility2nd
It’s ideal to get a 15 year mortgage, but a 30 year mortgage gets you a bigger better house and it’s better than renting.

Maybe you really can't afford a "bigger better house." The problem people have now is living beyond their means. Save your money. You're going to need it sooner than you think.

111 posted on 03/07/2024 11:58:41 AM PST by eastexsteve
[ Post Reply | Private Reply | To 5 | View Replies]

To: where's_the_Outrage?

Dave filed Bankfuptcy because of his foolish leveraged real estate situation a long time ago. Out of the rubble he came up with much of his prevailing wisdom regarding finance and began a radio show counseling people who were emerging from similar situations.
. He still dabbles in real estate....not because he needs to.

One size doesn’t fit all. You won’t go broke following his advice.

Wife and I didn’t buy a house until we were in our 40’s.


112 posted on 03/07/2024 12:00:20 PM PST by blackberry1
[ Post Reply | Private Reply | To 1 | View Replies]

To: where's_the_Outrage?

It’s good to go from Dave Ramsey problems to your fee-paid fiduciary’s problems.


113 posted on 03/07/2024 12:11:38 PM PST by Thrownatbirth (.....Iraq Invasion fan since '91. )
[ Post Reply | Private Reply | To 1 | View Replies]

To: Joe 6-pack

They’ve also been bought by ordinary middle-aged and older people who can’t afford to refinance.


114 posted on 03/07/2024 12:13:19 PM PST by lepton ("It is useless to attempt to reason a man out of a thing he was never reasoned into"--Jonathan Swift)
[ Post Reply | Private Reply | To 22 | View Replies]

To: where's_the_Outrage?

p


115 posted on 03/07/2024 12:17:31 PM PST by gattaca (Once a nation loses control of its borders, it is no longer a nation...Ronald Reagan)
[ Post Reply | Private Reply | To 1 | View Replies]

To: where's_the_Outrage?
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.

116 posted on 03/07/2024 12:23:50 PM PST by Alberta's Child (If something in government doesn’t make sense, you can be sure it makes dollars.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: faucetman
WOW! I didn’t know that!!!!!

MOST people DON"T. Or they sure don't practice it. Ergo, the need for someone like Dave Ramsey, to hopefully drive some sense into at least a few people, with a good message of support, too.

117 posted on 03/07/2024 12:25:55 PM PST by Paul R. (Bin Laden wanted Obama killed so the incompetent VP, Biden, would become President!)
[ Post Reply | Private Reply | To 16 | View Replies]

To: Crusher138

...and taxes.

First you do your rainy-day fund, with a little put in towards retirement. Then you do the house part while adding more towards retirement. Then you grow your income while adding in kids college fund.

All of that is a lot easier if you aren’t paying 18-23% on frivolous expenses from buying beyond your means.


118 posted on 03/07/2024 12:31:05 PM PST by lepton ("It is useless to attempt to reason a man out of a thing he was never reasoned into"--Jonathan Swift)
[ Post Reply | Private Reply | To 85 | View Replies]

To: Alberta's Child

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.


119 posted on 03/07/2024 12:33:18 PM PST by where's_the_Outrage? (Drain the Swamp. Build the Wall.)
[ Post Reply | Private Reply | To 116 | View Replies]

To: suasponte137

I have only heard him a few times...and after years of actually looking at numbers and figuring things out myself, most of it seems like “Well, duh”. Not to disparage him, but many people need those simple obvious points thumped into their head repetitively.

He’s not trying to make investment wizzes. He seems to be trying to help people Forrest Gump their way into basic wealth accumulation.

The inflation ride in part runs counter to that, but that’s a second-tier problem. As it is, the difference between a 15-year mortgage and a 30-year mortgage isn’t very large compared to paying for whatever house you do buy an extra two times.

If you’ve set aside a solid rainy-day fund first, then the risk for being a bit closer to the edge in your payment income percentage is a lot smaller, and the offramp is a lot longer.


120 posted on 03/07/2024 12:39:17 PM PST by lepton ("It is useless to attempt to reason a man out of a thing he was never reasoned into"--Jonathan Swift)
[ Post Reply | Private Reply | To 91 | View Replies]


Navigation: use the links below to view more comments.
first previous 1-20 ... 81-100101-120121-140 ... 181-187 next last

Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.

Free Republic
Browse · Search
News/Activism
Topics · Post Article

FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson