Dave Ramsey Breaks Down The Different Types Of Mortgages
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- Опубліковано 14 лип 2018
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I have a finance degree and Dave legit just dropped like a whole semester of knowledge in this video
Buying a house is easy, but paying it all off takes discipline and determination. So, it is important to budget everything you spend once you purchase a house
Great point!
I wish I could speak to this man for two hours.
why?
At least
I would love to gain some of the obscure knowledge that’s usually lost...
I would be happy with 30 mins. Just need to tell him my goals and hear what I have to do and I’ll do it.
Same here i want life advice.
Wow, Dave thanks for sharing your thoughts and informations with us. Everyday I'm learning, also preparing myself before I get my dream home.🤔
Glad I came across this video and all the feedback from veterans thanks from a young soldier SGT H
Great video! This is an important topic I go over my clients with when determining the best loan term for them.
Dave Ramsey you're truly a wise man. I will contiune to keep learning from you.
Got to love this guy. I’ve learn soooo much watching this guy on youtube. These banks play dirty.
Dave is such a resource and full of knowledge!
His older material is so much better and more informative than the newer with all the personalities who just parrot what he says.
agree. he has a bunch of 'yes men" around... i'd much rather hear Dave bring in folks with other opinions then just wannabe parrots.
My wife and I are huge fans of yours! Thanks for your work.
Great explanations!
This was very insightful to learn as a first time buyer!
Extremely informative ! Great use of examples to show the differences, definitely helped me understand.
Listen, love Dave but I need to clarify something real quick on his point with funding fees on VA loans. Dave is correct when saying that Private Mortgage Insurance (PMI) for conventional loans and Funding Fees for VA loans are similar. They’re insurance policies on your mortgage in case you default. This helps the lender takes LESS of a risk. However, these loans are NOT fully guaranteed. Funding fees insure the loan up to 25%. Which is why many people have heard that they have $36,000 of entitlement for their VA loans. This is because 25% of $144k (VA standard purchase figure) is $36k. In other words, if you default on a home you bought for $144k (or less), the lender will be insured up to $36k, not 100%
So banks get all the upside but taxpayers get all the down side. Why does this sound familiar?
Welcome to reasons why someone should have hit Woodrow Wilson square at his nuts December 23 1913 via the ILLEGALLy done Federal Reserve Act of 1913 ..... Sorry I was explaining the core catalyst of why the value of the dollar keeps hemorrhaging. But still, it is connected.
And Richard Nixon for ending the gold standard
Indeed....He was stupid mr. " I'm not a crook" while most of the nation that had half a brain just face-palmed laughing in disqust.
They’re a buisness... They’re not gonna take that L
I disagree with VA loans being more expensive. There’s no private mortgage insurance, even if you obtain full financing. The only additional fee is the funding fee which they don’t even charge if you’re a disabled Veteran.
Lol countrywide. Haven't heard of them in a while.
If I make my regular mortgage payment and I include another payment and designate in writing {For mortgage principal loan # _ _ _ _ only} will the full amount go toward the principal of the loan?
What about using an all in one loan to pay off your mortgage faster?
Could you speak on land contracts?
How do I get on the calls?
Question - Being a force retired disabled Vet, I was told being 40% service connected I wont pay the VA Funding fee. Does that make the VA loan decent to get in that sense?
Out of the City correct. I dont pay either. I think its around 20%
@@DaveThomson 10 percent or greater.
Hi Dave. What do you think about the BRRRR method to start a rental portfolio?
@@leftapple88
Dave used 90 day ballon loans that are callable, which is completely different from a 15 or 30 year fixed with no call provisions.
I often wonder if a bank sells your mortgage , how mad would the next bank be if you suddenly paid off the entire loan balance immediately.
They don't care. Loans are bundled up and sold a bunch at a time.
In the UK PPI was miss sold by banks. We have the ability to claim that cost back
I have a traditional 15 year home 🏡 mortgage. I still want to pay it off before maturity by paying off before then.
Go for it. That's what I did and very glad I did. Now I just have to issue a check once a year for my property taxes and school taxes - way much less than having a mortgage payment on top of all that. Feels good. Best of luck!
That's not really correct. The VA loan almost always has lower interest rates than conventional especially if you look at the down payment. The VA is a no money down loan that a lot of veterans take advantage of. I know we shouldn't buy houses with no money but it's still a better option than conventional considering there is no PMI.
2.15% funding fee for first time use and 3.3% for subsequent use. Average sale price right now is 315k. That’s $6772 and $10,395 respectively. It’s not “PMI” but it’s still an insurance policy to cover losses.
Nathan Price if you have a disability that is waived. most veterans have a disability rating.
Morgan, there are no free lunches.
I think it would help people conceptualize this better if you wrote it on a board or something. It makes perfect sense to me though.
I am so confused. I live in the Seattle area and the area I live in the average home price is $727,000 and the VA loan limit is $726,000 because I live in a high cost of living area. I always wondered if it is a benefit to purchase a home using the VA loan without putting anything down because that just means you have not paid any part of it off. My husband and I are both veterans and are looking at buying in a cheaper area (with the average home being around $400,000) but even that seems expensive. If we have a high enough income, say $10,000 net, is it worth it to purchase a home around $400,000 or $600,000 even? Using the VA loan or not?
Did you ever buy a home?
My mortgage was sold to a different bank before I even made the first payment 😂
Me too lol
¯\_(ツ)_/¯
@@matthewkoch6937 Its a very quick return on investment. You get your money back and a profit within a month. Money that can be used else where.
@@matthewkoch6937 You get the processing fees for the loan and a small portion of the profit on the term of the loan.
You then take that money and use it to make more loans.
Velocity of money!
I don't even know that much about this but I know he's wrong. VA loans right now are half a percent plus lower than non-VA. where else are you going to find 2.25% non VA today? The funding fee can be as low as 1.4%, which is the only fee. No PMI on VA loans with zero down. Am I missing something here?
So you pay the funding fee and they still come after you if you default? Makes sense.
Dude's bottom lip has not moved since he got that headset on that soccerball head of his.
I'm so confused, my house is a VA loan...I'm not sure how getting the loan this way cost me more? Guess I have to see what fees were charged in my loan vs the fees that would have been charged in a different loan vehicle.
Ok...pulled out my loan papers...I borrowed $547K - the VA funding fee (that was rolled into this amount) was $2,734. To me that doesn't seem too bad in exchange for not having to put any money down or paying PMI. What I would do differently is pay that funding fee out of pocket rather than have it rolled into the price of the mortgage.
Your interest rate was likely higher also. When I was looking at loan a VA loan was 1/2 point higher.
You "borrowed" half a mill?!? How soon you plan on paying that off, if ever?
Jaime Ness nope...my interest rate is 3.25.
OhioFlipster lol...i am on track to pay it off in 8 more years...had I discovered Dave Ramsey sooner it would have been even earlier than that.
If you’re a disabled vet there is no funding fee. Rates are usually less due to the guaranty as well
I know I will probably be attacked for some weird reason but I think the VA home loan is the best. You don't HAVE to opt for 0% down, but you can do it if you choose to. With VA streamlining, veterans and military families can refinance existing VA loans to a lower rate or convert from adjustable to fixed-rate financing without a lot of paperwork or hassles. Additionally, no PMI payments. I can't imagine a vet taking out a conventional loan when a VA loan is available, but to each his own. They've worked great for my husband and I.
I agree VA loans are excellent in many cases.
Can I get in contact with you about what to do on a bike
Why didn’t you mention a USDA loan?????
How do you just know everything including the mortgage. I don’t know VA loan have a disadvantage of being chased by government. Sounds funny.
Does anyone know if you also pay PMI for FHA Loan?
Yes you do.
Thank you
No you dont PMI is for conventional MI is FHA both are mortgage insurance however p means private
!!! Should i buy a house if i am on a repayment plan with the IRS !!!
The VA loan is a benefit less than 1% of the population earn the right to use. The foreclosure rate for VA loan is less than 2% . I have a rate of 2.75% on my VA loan and funded a fee of 3750. It is unwise to say it’s the most expensive way to buy a home.
I'm confused, VA loans sell under the idea that you pay zero down, no mortgage insurance and lower rates, how could it be more expensive than a traditional loan?
When you don't pay a down payment, your monthly payment is higher and you pay a higher interest rate.
No fee for va loan if the vet is disabled.
Any USDA info? It sounds really good. I've been renting forever and finally decided to buy. Seems like Dave Ramsey's way isn't for everybody. Have a little savings and have a decent job but renting seems like money just being wasted. I have to ask my landlord for everything...can't have a dog.. can't paint how I want. Always need to remember a rental isn't my property. Buying will be mine and I know things will eventually break but that's what my savings is for... I hope I made the right decision :)
Did you get your USDA loan?
Why dont you talk about VA plus THDA loans? Are you aware of the benefits?
No matter the program, Conventional, FHA, VA etc, the fact of the matter is they are all better than paying rent. Rent is equivalent to a loan at 100% interest
It depends. Depends on your overall financial situation, whether you plan on staying in the location long enough to cover transaction costs, quality of life issues, and perhaps most importantly Rent Payment v. Mortgage Payment (including property taxes, hidden costs of ownership).
@@CJinsoo all the hidden cost of ownership are going to be put in the rent unless the landlord isn't planning to make a profit
Naca is the best loan. No PMI... low rates that are fixed.... no closing costs... no fees
Why dint he talk about the conventional loan?
I think its better then all those loans.
That was the li'l Fannie Mae bit
Conventional loans is a great option I agree.
He did talk about it. Watch again
What about usda
Yeah no body has said anything about it. And I'm interested
I will have a video on all about USDA (and VA) loans within a few weeks!
I have a government backed mortgage. No PMI 🤗
I’m a regular customer with Luxuryhacks 🥰
He removed All needed off my credit . Luxuryhacks @ hotmailcom 👍🏻
Wow
Don't forget PMI which ensures the FHA guarantor aka the fed gets there money bank.
Title should've been "Dave Ramsey talks about FHA and VA loans"...
So confusing the best way is to save money for a simple home and buy it as cash better than let loans companies stealing money
Veterans Affairs...
USDA loans are a good topic to speak about and his isn't fully right on the VA loan. He is right when it comes to some stuff and vets with a disability rating don't have to pay a funding fee. This is still a good video and hope he speaks about USDA loans
"Philosophically" was definitely the wrong word to use here.
So if I have a conventional loan with 20% down, should my lender be charging me a funding fee in the origination charges?
gemini dreamer convention loans do not have funding fees. They have something similar called private mortgage insurance (PMI). However, if you put 20% down, PMI is no longer required so you are not paying PMI on your mortgage. As for origination fees, that’s totally different. Origination fees are simply what the lender is charging you to complete the transaction. Aka, “the cost of doing business”.
What happens if you don't pay your VA deficiency? Can they take away your Social Security?
Has anyone here done a usda loan?
Im 26. Came to USA 5 years ago with nothing. Got married at 24. Just bought a house with 20% down. No debt other than my mortgage. I would say get 15 years mortgage with 20% down or don’t buy a house now. Don’t stuck with big payment which you might not make a one day.
Search Wacky Mortgage guy for advice on home owning
Is conforming and conventional the same?
Boy I wish I owned banks
So if you put 20% Down payment do you not have to pay PMI?
browngal00 correct
@@mkite715 thanks
No pmi
Only if you're using a conventional mortgage. If you use FHA you will pay mortgage insurance throughout the life of the loan.
how should i buy a 1.5 million dollar house when i only make 13k a month
Dave is completely wrong on this. Completely and it's a shame.
hyates46 can you provide a citation to support your position?
@@JaimeBlanco666 he shouldn't have to. There is plenty of information out there to contradict Dave's opinion. The only significant fees that are attached to a VA loan would be the funding fee of around 2 percent and that fee can always be waved if there is a service related disability. Secondly, there is no PMI and lower FIXED rates. The VA loan is actually the cheapest loan product and the gold standard in the loan industry.
I am a veteran about to retire from my county job. I am planning to move out of CaliforniaI, because I want to buy a house. Obviously, I'm in my 60s. I raised my children on my own, and proud to say, I didn't rely on the government. My dream was to buy a house someday, but living in California I was not able to do it here and it is difficult to save money. Listening to this, makes me realize, mu dream will not come true. 😢
His calls screener cherry-pick the callers
I'm guessing you've never once listened to a radio call-in show prior to today. Yes, that is true. Just like every other popular radio show.
Why do you use people's name for types of mortgages. (.....i'm canadian by the way so a faney may mortgage sounds silly)
Fannie Mae is a government agency that buys mortgage debt from banks in the form of collateralized debt obligations. The debt is converted into a security that investors can buy.
@@mohamedisak1900 I didn't ask what Fannie Mae does I asked why you named government agencies after people
The Man's Kitchen The name of the agency is Federal National Mortgage Association. Commonly known as Fannie Mae
No down payment for a VA loan? You are not even covering the Realtor commissions. Talk about being underwater at closing.
jvolstad the seller pays commission to the listing and buying agent. You don’t pay the agent when your buying a house.
Benton Tong you may not pay the agent directly, but you do pay through the cost of the property.
I'm not even 18 yet.
good time to read "the little common sense book of investing" by john c bogle. if you invest at 18 compounding returns will do wonders for you.
Well - enjoy your youth while you have it!! I wish you all the best. Take care. ;)
Same
just pay cash ye bums
Y’all come to Wacky Mortgage Guy
I checked you out but you have no videos on a VA loan.
Bad look here Dave. A lot of bad info...
smaller government please just provide helps like smart money and things like this show to everyone and lower taxes to just 10% set and no more IRS please. Gov workers could get great truly productive jobs with the boost to the economy. get rid of social insecurity let it die off with all current players and make all workers take 15% income and put it in 401k IRA of peoples choosing. close the postal service if they cannot be profitable in 4 years. and put people to work for benefits. quit letting foreign countries undermine the poorest peoples incomes by flooding the country. and make all lottery money earned go to the neighborhoods that bought the tickets. 😉😊
Expensive
Very expensive
Extortion.
.
There's the types of mortgages.
Hahah pretty much