Give Every Dollar a Name Before the Month Begins | May 17, 2024
Вставка
- Опубліковано 26 вер 2024
- The Ramsey Show (May 17, 2024)
💵 Sign up for EveryDollar today! Create a free budget - ter.li/qigloc
Rachel Cruze & Jade Warshaw answer your questions and discuss:
"Is there a downside to recasting a mortgage?"
"Should we tackle our debt right away with a layoff on the horizon?"
"I work hard but I still feel like a guest in my own home..."
"What should I do after maxing out my Roth IRA?"
"Why should I choose mutual over index funds?"
"Should I file for bankruptcy?"
Next Steps:
📞 Have a question for the show? Call 888-825-5225 Weekdays from 2-5pm ET or send us a message - www.ramseysolu...
🏦 Take Your 3-Minute Money Assessment - www.ramseysolu...
Support our Sponsors:
Blinds.com - www.Blinds.com
Christian Healthcare Ministries - www.CHMinistri...
Churchill Mortgage - www.ChurchillM...
Hallow - www.hallow.com...
Yrefy - yrefy.com/ramsey
Watch more from Ramsey Network:
🍸 Smart Money Happy Hour ⮕ ter.li/dre4oa
💸The Ramsey Show Highlights ⮕ ter.li/tp4w1h
🧠The Dr. John Delony Show ⮕ ter.li/9l5k9g
💰George Kamel ⮕ ter.li/2ma765
💡The Rachel Cruze Show ⮕ ter.li/roya3c
💼The Ken Coleman Show - Highlights ⮕ ter.li/7ipp7e
📈EntreLeadership ⮕ ter.li/proqeb
Ramsey Solutions Privacy Policy
www.ramseysolu...
I love that the "debt free" sweatshirt looks like a university sweatshirt. pun intended lol
First caller said that an employer may give her student loan repayment as part of a hiring package. Why would you tell her to pay the $12,000 off now when that could be part of an employment compensation package. When you're in school there's no interest on a student loan, that doesn't start until six months after your graduate and she has the ability to pay it off before the interest kicks in.
If an employer offers student loan repayment as part of a compensation package that would seem to make more sense than paying it off right now.
I agree...just wait and see.
Who uploaded this Dave 😂
Heard the same story twice and blacked out twice…..
Hahahahahah I thought I was tripping!! I was this close 🤏🏾 to talk my shit to Verizon… But it wasn’t my Internet lmao
I thought it was my phone! Glad you posted 😂
You should have a sell the horse shirt. Lol.
It doesn't even know your name.
What is going on with this broadcast??? It keeps starting over from the first call!!!!
No doubt, fire the editor, and get me in there. I'm sure the person editing these videos is making the big bucks. Room to improve. Get'em gone. Give me a job. I would be forever grateful.
@@sneakersession6964 crazy that you think this is a way to get a potential employers attention
Yes same here. And lots of blackout chunks. Maybe there’s something there that they are cutting for people outside the US?
Well, if I remember correctly, someone in the booth's last day was yesterday. Maybe it was his job to make sure the broadcast ran smoothly, and the new person doesn't know how to do that yet.😉
@@bettedavis9261Human compassion - love to see it!
I don't think you have to call the mortgage company to make additional principal payments. Mine have always had a box you check indicating where you want the additional to go, and it always works.
That depends on the mortgage company. Not all of them offer that.
@@Trustbutverify2651 didn't know that. That would be quite inconvenient
That's how it was when we were paying off our principal in chunks. A box to click on the lender's website.
No...Chelsea's employer may pay some of her loan...wait for the Fall like she wants to do.
An easy way to pay principal is to set up an auto payment with the debt holder and let them know any extra payments that you make should be paid to the principal. We did that with our HELOC … yes I know… but we got it paid down so much faster!❤
My heart goes out to Nicole's situation. I would be so heartbroken. I probably would be worse off than her and cry on the phone
29:46 Why would you tell her to payoff the student loan if she could negotiate it as a part of her hiring? It’s not in repayment and she has the cash to pay it off if her new job doesn’t offer repayment.
One is real, one is hypothetical.
When you borrow the money you pay it back.
Golden handcuffs. The company offering loan repayment will have strings attached. Like lower pay...
@@danielreeder62 it is repaid by the employer. It was horrible advice
@@jasonkobos3850 nurses are so in demand you don't know that
That’s crazy because I didn’t know this back in the day when I bought my bronco
1996 bronco
I was paying extra payments every month, but I didn’t realize it wasn’t going towards the principal.
I only found out when I called because I was gonna be late on a payment like a day or two and she goes. Oh you’re fine for like six months because the money I sent and I didn’t realize that so it really bit me in the ass.
For Grayden i would sell both and buy bigger. Definitely dont make the kids feel like guests in their own home .
Oh, my, this is exactly what I was thinking! Whoever's kids had to move into the other "family's" house would feel like outsiders right off the bat. Not a great way to start a family dynamic of "oneness."
Every show can’t be great. This was not great.
I feel like Jade tried to take over every call trying to act like she was an expert in all areas
Really showing their ignorance on mutual funds vs s&p question. They didn't give any reasons they believed what they said, they just parroted what they were supposed to say. So that was disappointing.
I have felt like she does that with every host.
Love the merch, please do a beans & rice, rice & beans and scorched earth 😊
That’s asinine
And Gazelle Intense!
Yes! I need this too. Rice and beans, Ramen noodles. SCORCHED EARTH
As a vegan, I'd love that lmao. Double meaning shirt
@@TH0KH literally same!!
I hope the first caller did not pay off her student loans when her employer might offer that as a perk.
I don't think the ladies were listening...they were already formulating their response.
That's exactly what I said!
No doubt. At least find out what the deal might be before dumping cash into the loan.
They usually don't pay off student loans. They'll have a signing bonus, and if someone is in school, they may have tuition reimbursement.
If you cook from scratch at home....Embroider your own Dave Ramsey slogan " We have food at home".
Most of the sign on bonuses for nurses are paid after 6 months
So glad you guys are doing merch! You should have a shirt that says
“sell the car”
“Stop acting rich”
“You’re broke”
“You’re fake asf”
“Broke mindset”
“No juice”
“Broke Boyz”
😂😂😂
"Amputate the Tahoe"
And the BMW one
“Stop spending like you’re in Congress!”
When combining two families into one, I suggest everyone move. When I temporarily moved in after selling my house while we waited for our new home to close, it felt like I was on his turf. As soon as we were in "our" home that all went away.
The problem is that Rachel has never been through what the last caller is going through, so she didn't help her 😢
I rarely disagree with advice but today was like the twilight zone. Did they really suggest a family with a newborn and facing a potential layoff drop their emergency fund to $1,000? That seems reckless.
Extremely reckless!! I was like no no no!!! I hope they really think it through and do not take their advice.
they just have cookie cutter responses
DR would say that would be the storm and to stop the steps and save as much money as possible.
Yup especially when she will know if she's being laid off soon. Wait until she's back to work in August to do the payoff.
She doesn't know she's getting laid off. It was the district near them
Love me some Ramsey, but have to say index funds have been shown to outperform managed mutual funds. Mutual funds have higher fees and the following the market (aka index funds or etfs) outperform the vast majority of managed funds over the long term.
so excited about the merch!!!!
It depends on their interest rate whether or not to recast. They might be able to make an extra amount on interest earnings
You can make principal payments online. I never had to call and make that extra payment 🤷♀️
Only with SOME mortgage companies if you want to be sure it is going to principal and not just the next payment (which includes interest and you would still have the monthly payment to pay on the regular date.)
Rachel also is WRONG about recasting
Utterly confused with the advice they gave Joe. I thought people were supposed to go into stork mode until baby is home safe, and in their case there's a potential layoff ahead. Instead they are asking Joe to deplete their emergency fund? Anyone else find this contradictory?
Yeah! I thought that was really poor advice.
Yeah I was gonna say.. usually pausing the baby steps, save for Stork mode, and when baby and mom are good then continue on with the Baby steps
Isn't the baby already at home? He said that she is on maternity leave right now
But the emergency fund is really once debts are paid. Having a buffer of $20k isn’t really there if you have $20k in debt. Once the car is paid off (even today as they say) then in no time they can build up the emergency fund again.
I took it as the baby is already here
On a budget and we didn't want to eat out but we've been without power for 24hrs haha. The Houston severe weather has been no joke.
We got really lucky here in the Sugar Land area. Hope you get your power back on soon!
That qualifies as an emergency. Remember that one of the best phrases in Scripture is, "It came to pass..." (and it will.) Give yourself grace, eat out now as it's necessary, and hop back on the budget later.
If you are applying extra payments to the principal for your home, give those instructions in writing, not just a phone call.
Agree. Banks in our area are not applying to principal, unless it’s in writing.
We paid our extra principal payments online. Our lender had paying a principal payment as a choice on their website. It made it so easy.
@@bettedavis9261 Well don! We paid our house off so many years ago, online was not even an option. Bought it in 1987 and paid it off in 1994. We really economized in the years between when our kids started kindergarten and when they got to middle school.
@@Trustbutverify2651👏👏👏👏
Ugh. INDEX FUNDS ARE MUTUAL FUNDS. I hate when people incorrectly use the term mutual fund.
Jade and Rachel don't know much about investing. 😮
That sweater is so cute!
Recasting can save you a lot of interest expense at no cost that a refinance would entail.
Prepaying the loan (making a principal only pmt) takes the least amount of work and saves you as much, if not more in lifetime interest
What the heck is rental people? 😂
Just another label to separate people
@@MONI-bj1ms that was a bit condescending from the caller. Glad Rachel said she would be a rental person too haha
@@oceansky6207 my home was a 1 br for 25 years so your comment is dung. What are statistics but labeling and separating people and things. Gen Z, Mils, b.boomers, boomers, middle upper and lower class. Income separation. On and On since the world began. I'm a baby blomer with a paid for house yet I'm separated from those that are debt free.
Hmmm, wouldn't it be smarter to keep the student load as debt for leverage to a new employer to ma6be pay. Put the money on your house and not refinance cause with a lump sum if will shorten the loan life but you still keep the normal payment? If the new employer doesn't pay the loan, then take the 12k and pay that off???
Engaged caller at the end.. why not keep your house and register for a new kitchen/remodel fund for your wedding next year?!!
Because wedding guests are not responsible for a couple’s personal expenses.
Successful investing is hard work because it means disciplining your mind to do the opposite of human nature. Buying during a panic, selling during euphoria, and holding on when you are bored and just craving a little action. Investing is 5% intellect and 95% temperament
We have learnt in investing journey that you can't control the market but you have the power to control your actions in the market.
That's correct. At first, I wasn't too pleased with my gains compared to my previous performances, I was doing so poorly, I thought I needed to diversify into better assets, so I got in touch with an investment-advisor. That same year, I pulled a net gain of 550k, which is about 10 times more than I average on.
I have been thinking about how to grow my reserve by atleast 40% or more within months. I will be grateful if you can give tips or anything on how to make good market picks and how I can get my portfolio diversified and balanced in order to meet up my target..
Big Credits to ''THILO MOUKOKO' he has a web presence, so you can simply search for, there are some others but it might be difficult to get them, but Thilo has been a good guide through the year.
He appears to be well-educated and well-read. I ran a Google search on his name and came across his website; thank you for sharing.
Teacher making 88k... this is proof teachers are actually paid well. Especially since they have a lot of time off
Most teachers in junior high and above ( which would be the only ones you actually make anywhere near that amount if they make that amount it damn sure isn't elementary school teachers)..work almost year around with literally over half the summer in certain training sessions and dealing with stupid school board meetings as well as preparing lesson plans for all of their upcoming classes
...
Don't get me wrong. I'm not trying to defend or suck up the teachers but I'm staying in fact because I used to date one for a long time
But ... having explained all of that, in the end it is one big cluster crap of many issues. On one hand many of them are overpaid and they don't do Jack crap especially College professors in mass quantities. ITT defect Tech was a perfect example of that.
On the other hand the teachers that do give a crap about not following quote No Child Left Behind " and not just passing a student just because of the students skin color being a minority class or that some system tells him or her to pass him or her.... are often thrown under a bus figuratively speaking by the school board and the state as well as Federal governments because they're not wanting to teach critical race Theory and other useless bull crap as well as this transgender studies nonsense
@@motoryzenWe need to stop feeling sorry for teachers not making enough money. After all, a high percentage become millionaires
@@Nigriff Hmm. . so maybe we should cut other people's salaries to give them the same economic advantage.
There is an ad 3 minutes in. Seriously?
I am currently trying to sell my car to get out from under the payment & unless I am willing to take 8k less than it’s worth it’s a no go . X nice, barely used cars are not selling!!
On SS, I cannot afford to take that kind of hit & still have $$ to get a cheaper replacement . . .just saying. If I was 30 it would be a different story . . Years to recoup that loss.
Well from the sounds of it it sounds like you can't afford not to take that value loss because regardless you've already taken it you probably brought it brand new a while back. And then realized too late that you really can't afford the payments versus other necessities in life.
Not trying to insult you but facts are facts and I almost speak from personal experience about it
So unless there is some other variable that I'm missing or misunderstanding here, you need to go ahead and sell it for what you can get for it and get out from under that hardcore payment and it needs to be get a friend to take you to and from places until you can save up enough to buy a lower ranking replacement that's good enough
Drive a school bus, start is 25 $ hour. Plus over time for sports events etc. you get time in between for your art
I’ve been trying to get a question answered through the Ramsey email to no avail. Maybe the community can help.
Is the housing cost of 25% of take home reasonable anymore?
Example. I live in northern VA (which is where my family resides). My gross pay is $115k, but after taxes and child support I take home about $6200/month.
The cheapest CONDO you can find in good shape is at least $450k.
25% of my take home is $1550. To get a payment that low I would have to have $300,000 saved for a down payment….
How is that reasonable?
Even if I saved $3000 dollars every month it would take a little over 8 years. And that hardly leaves room for investing for retirement or anything else.
I’m in the same boat but math still does math. Maybe move outside of town or scale down. I’m talking to myself here too. If we can’t afford it we don’t get a pass on math even though I sit here constantly doing the calculations myself. It’s a pain. But we just live under our means and keep saving up or get a second job etc and then go for something a little further out or in need or some small upgrades…the financial times we are in are horrible but it doesn’t give us the ability to just ignore it. I’m still renting at 48. I may never be able to buy but I’ve paid off 165,000 in debt and I’ve nearly got the emergency fund in place and I just keep squirreling. It’s frustrating as it’s taking a long time but it’s just my salary. Anyway good luck and don’t lose hope. We will get there in the end.
The advice works because it's a percentage. The math doesn't care. Even on this show, they've conceded to people with up to 30-33% of income, but it's usually because they're already in that situation. If you're in a position to plan this out, the 25% number will allow you margin to invest and live life. The higher you go, the more you pinch your other options. Good luck to you! We're all in the same boat with this!
Child support is after tax. So, I’d add back whatever the child support payment is to get to your 25%. It’s another bill like insurance, mortgage etc.. It’s just the state takes it out directly.
@@jaijai1132 believe me I know how my child support works. But when I lose $1480/month to it, I take it out. That is a mortgage payment for some people.
@@jaijai1132definitely! Child support isn't included in Dave's idea of "taxes." They shouldn't be included when figuring out one's after tax income since they're not taxes. Dave also doesn't figure in health insurance premiums, HSA or 401k contributions as "taxes." It's confusing, because people think "take home pay" is your net income, but Dave doesn't see it that way. He only counts actual taxes being deducted as take home pay.
This very same thing happened to me and my ex-husband
She paid the down payment and the house went into her name. I never owned anything.
Thank God, I was smart enough not to put any of my own money into the household. Well, I did put some maybe a couple thousand we end up getting a divorce and I ended up with absolutely nothing.
Because promises we were supposed to put the house into our name which never happened
Not my favorite pairing - a lot of chit chat and repetition as if they were having a girls' coffee hour rather than a call-in show to get the callers focused for help. Lots of techno problems. I was working while the UA-cam was running, it blacked out, but then picked up a few seconds later and repeated from the beginning. But everyone and every business can have a bad techno day!
Joe..I'd refinance. the vehicle at a credit union to lower the monthly payment
Military family has $40k in equity. Bet they are glad they didn’t rent.
I've seen it go both ways...people regretted buying and ended up moving.
You can’t just be good at saving. You should be good at paying debt too! And giving as well!
Ramesy merchandise needs to have a shirt that just says "The Ramsey Show" I've been wanting one but you guys don't make it!
Hopefully Chelsey won't have children until she has a minimum of savings that equals yrs of income saved so that she can stay at home with her baby or has 5 yrs of childcare saved.
The "We have food at home" shirts are so cruel and thoughtless. So many people do not have food at home or even a home. What were you people thinking? Sounds like a cruel brag. Not very Christian.
I agree. I'm well-fed but extremely frugal. I live in downtown L.A. on that humble knife-edge between the wealthy folks in their ivory towers and the homeless living on the sidewalks. I wouldn't dare to wear a slogan like that.
One of the reasons a lot of young families are not able to pay off the mortgage is they spend a LOT of money on things that are very expensive but which could be done much more cheaply. Kids remember the EMOTION of the moment, not the amount of money you spend. I see young families paying huge sums of money for fancy birthday parties, dozens of stuffed animals/toys/video games, lavish Christmases, and elite sports teams (even if the chances of their kid becoming a professional athlete are slim to none.) Balloon bouquet from a fancy party store for $50? A kid won't know the difference with a balloon bouquet from the $ store. Use the resources in the library for books and videos. Buy second-hand. Those years between the time the kids start kindergarten and reach middle school are the years to economize and put the extra money on the mortgage before all the demands of teenage years pick up. Every time you want to spend money on the non-essentials, think to yourself, is there a less expensive and creative way I could do this for less money.
Absolutely. We’re noticing the totally ambitious birthday extravaganzas as well, even among some of our extended family members. Now it’s not even enough to have a bunch of the kids’ friends; their Parents(!) all have to be included. It’s probably a generational thing but I can’t help but think it would actually be more fun and meaningful for the children if they were involved in choosing things from Dollar Stores and other creative outlets, for their own parties. It’s almost a shame to leave them out of such an important learning opportunity. It’s not even about “affording” or not - to me it’s about setting expectations for the rest of their lives. There’s no law that says just because you have the means you must spend to the limit to impress. To your point, you can stay grounded without booking the Taj Mahal for your special occasion!
@@BeeDee-qs9so I chalk a lot of this up to social media. Every event is overload now for so many families.
@@BeeDee-qs9soI'm so glad my boys are adults now. Our largest expense for parties was once at Chuck E. Cheese, and once at a bowling alley. All the others were sleepovers with pizza and homemade cake. The kids loved it. Who needs all the hoopla? The parents, that's who! Trying to impress the other parents. Many, many years ago, a former coworker and her husband hosted a birthday party for their daughter's first birthday and invited their friends (I wasn't invited😉). It was just an excuse for the adults to get high on coke. Ridiculous.
@@bettedavis9261😳😳😳
This episode could have really used some Dave. I had high hopes for some girl power but was disappointed. Most conversations seemed a little aimless and fluffy. And where did jade go? She was the main reason I clicked.
This upload is cursed because of the advice they gave to that family with baby just born or on the way and facing a possible layoff . Y’all did not seriously tell these people to pay off that car that doesn’t have a payment until next year, and the wife may not have a job in three months. They are better to save the $700 a month in addition to living off only his income until they are in the clear, or until next year. By the time the car payment is due they can pay it off with one check. The baby is good, momma is good with or without the job she currently has, and they will still have an emergency fund. Then they are free to tackle their mortgage if they so choose. It’s scary when there isn’t an opposing viewpoint. You two being on the same page was not good in this situation.
How did they not address the fact that Joe had a full emergency fund without finishing Step 2? Seems like they were too distracted to dig deeper. They’re giving Dave Ramsey advice to someone who isn’t working Dave’s plan.
It’s possible they went stork mode and stopped the steps, but they didn’t even probe to find out. Great catch!
I wish she could rent that land to them.2:31:20
$88,000 for a NEW teacher, starting pay here is $40,000.
About 46k in my area.
@@bettedavis9261 Do you see a move in your future?
Palm Springs CA. I can't imagine how high their expenses are there.
@@brucefredrickson9677 no, I'm retired and living like no one else.
Consider the cost of living - not equal in all areas, and salaries are not either. But that's why high pay and high pension in earning years allows a lot of teachers (and other individuals) to have a cushy retirement when they move to lower cost states. Just remember why the lower cost states are lower cost and don't take your high cost far left "values" when you move for retirement.
That is the dumbest advice to this soon to be new nurse grade, several work places are offering student loan payments why not take that and use the money to go toward her mortgage
What is with so many people in this comments section involving Ramsey solutions to our long shows AKA video clips and refusing to post timestamps about what they're commenting on?
How do you ex0ect any quick ans intelligent conversation about it?
Kari, dang what a mess. This is a warning to everyone else that thinks throwing things under the rug is ever going to solve your problems. This is the accumulation of a lifetime of pushing off responsibility and taking the easy route every time there was a difficult decision. Shes about at the moment where the buck stops. Dont let this be you yall.
❤❤❤❤
You all need to re-edit this and re-upload
His Mommy is not is wife. He needs to pay for U and fully understand now.
Anybody who thinks teachers don't make enough need to look up the public salary data for the districts in their area. You will be surprised.
I live in a town with a population of less than 20,000 and we're hours away from a big city- there is more teachers making over 100k than there are teachers making less than 100k.
And even more - from a retired teacher and community college professor - check out the NUMBER of administrators. # of students and # of faculty has gone up 7-8% each in the last 10-15 years. Number of state-level and division-level (NOT at the individuals schools) has gone up EIGHTY-SEVEN PERCENT, most of them with very high salaries. And, quite frankly, you could dispose of 90% of them and no classroom teacher would ever miss them. Keep payroll and risk management, insurance, etc. Get rid of all the "experts" telling you what the "literature and research says" when they haven't darkened the door of a classroom with real students in years, some of them never!
I thought Jeremiah from Houston was another Winston Cruze prank call attempt! Might need Rachel to confirm if this was a Ramsey Conspiracy or actual caller.🤣🤔 @RachelCruze
You should look up Caleb Hammer for financial stuff
Fire the editor. I'm sure they get paid huge bucks editing these videos. This episode was HORRIBLE. Black screens, playing from the beginning. Dave, get me in here. Fire your editor. They clearly are not grateful for the job they have.
Thanks.
Willy.
Where did Jade go, kept looking like Rachel was trying not let her speak?
When i see jade, i change the episode
Sorry, but we need to take care of our parents. This is when a separate room, basement, or something is needed.
You do you.
Yep.
Nobody with a dime of debt should be buying a t shirt, mug or hat. This is so scammy.
Did Jade have to pee?
Miranda is lucky Dave didn’t take her question. He would have leveled her.
C'mon guys. You've gotta do a better job with the upload.
Jade gives the worst advice
How about putting a time stamp involved in your comment so that way someone has a quick ability to reference what part of the show she's mentioning that bad advice involving and that would allow intelligent conversation about it
@@motoryzen How about no
@coltenmoore5990 then dont be surprised if you get reply comments like mine.
What's the point of complaining about a host for this show if you're nor going to give ANY details about the individual caller and hers convo OR a timestamp?
*facepalms*
Bottom line is without you mentioning either of these things ...makes you look like a dime a dozen whiner..instead of inviting intelligent conversation
How about critical thinking skills? Did they pass on you also? 😆
@@motoryzen Not reading all that😢😢😢
Everyone knows Dave treats Jade better than his own daughter. Very suspicious how she got hired!
You need professional help.
Weirdo...
Not suspicious at all, it's called diversity.
Probably
What do you mean?
Maxing out the retirement and it's not even June is crazy. He missed A LOT of free money not going through the job.
Time stamp would help. It's a 2 hour show...
I am sad that it keeps cutting off. 🫥 I can’t enjoy 1:06:02 the show 23:48
Recasting your mortgage IS paying off debt. It’s basically another down payment on your home without changing your term or interest rate. It goes directly to the principal. They told her not to recast and to put her money toward the principal - it’s the exact same thing except a recast lowers the monthly payment. Nice financial advice ladies.
It sounds like to me both actions (prepayment vs recast) reduce your principal although the former action would put you “ahead” of schedule and the second would restructure your minimum payment so that you once again finish “on schedule.” If your goal is to get out of debt as soon as possible you’d be advised to prepay. If you want to reduce your fixed minimum payment (to ease your monthly obligation) without necessarily paying the loan off early, you should consider recasting.
@Ramseyshow really needs to change their advice on recast. You are paying it off and the type of person who is paying extra under the terms of a recast is mindful and is looking to get out of debt faster. Their argument contradicts itself
To the caller in Palm Springs. I live in the Val Verde district about 1 hr. Away and the minimum pay is $70,000 to $135,000. They are hiring so many teachers because of the retirement.
If I’m feeling down or panicky over $$ I love this show. I realize I’m not alone and there are folks struggling all around and there is HOPE for us all regardless of situation.
Jade misunderstands the value of recasting. IT SAVES INTEREST. RECAST NOW!
Can't you just throw a huge chunk of money at the principal? That saves a boatload of interest, as well. Is there a difference?
I think misunderstanding the value of a recast is common.
Recasting does NOT save interest over simply applying extra money to the mortgage principle.
It typically lowers the monthly payment (why else would a person recast). When you lower the payment less is applied to the mortgage principle every month. Since less is paid toward principle, the interest will be more.
@@bettedavis9261they’re the exact same thing except a recast lowers your monthly payment.
@@bettedavis9261you can just prepay… when you prepay you place yourself ahead of “schedule” and pay off the loan early (assuming you make other payments at the minimum). Recasting restructures the loan in a way where you “solve” for the new, reduced payment that puts you on your original amortization schedule… meaning your loan matures on the same date as originally planned
OMG! Going into life with a new baby on the way and NO Emergency fund, but congratulations you paid off your car. I really don't see how that reduces their stress. Two calls in and this episode is painful. Not the usual. 😮
This is the second time where there's no interest involved, and people would have peace of mind having $22,000 set aside for any unforeseen medical expenses due to the birth of the child.
Child and mom are home and healthy perhaps a different story but this is why you have an emergency fund and giving it up with a baby on the way made no sense to me especially with the potential of a layoff, yes it hadn't happened yet but when the trains coming down the track don't stand on the tracks to see what happens while handing over your entire emergency fund.
OK call three coming up...
The baby was already at home.
The first caller had it right, let your new employer off some loan repayment before writing the check. It's insane to spend all your own money if someone else will do it. That's exactly how rich people manage to stay rich
I feel like they were so out of touch with the Kari call
The video is incomplete from minute 26 to minute 27. There is an empty gap of the video. Please fix it if possible.
53:14
Robot advice
Personally, I would of done a recast - sure it resets your monthly payment thus you have kore of you payment going towards interest. But, I’d imagine it lowers your overall interest paid out if monthly payment - this way when paying extra the overall interest you pay is much lower than just “don’t recast and just pay extra”
Any time you recast for a lower payment, and only make that lower payment monthly (or any amount less than the original payment), it will increase the overall amount of interest you pay.
Simply applying extra money to the mortgage principle is what will save total interest paid.
Assumption- the interest rate doesn’t change
"Would have done."
"Of" is never a verb.