Does the 25% house payment amount recommend include all expenses associated with home ownership (property taxes, utilities, property insurance, condo fees?) Or just mortgage?
Was approved for a mortgage of 300k at the age of 22, but decided to only spend 220. Still live in this home 5+ years ago and love it. The monthly mortgage payment (with property tax) was only 20% of my monthly income. Didn't want to be house poor and wanted to travel (which I did) and very glad I went this route. Now doing foreclose property management, we see A LOT of people who bought more then they needed to feed their ego's. It's sad to see but they put themselves in that situation. Be smart.
How did you get approved? I'm 23 and plan on start saving for a down payment. I want to increase my chances of getting approved! Currently, my FICO score is 748 and my Transunion score is 754.
Big unspoken problem with home buyers is not budgeting for home maintenance. Plan on about 1-2% of your home value. HVAC units break. Fences fall down. Plumbing leaks. Paint fades. Plan on it.
@Stuart Hollingsead I live in the suburbs of Chicago-23 and looking to start saving for a down payment so I can move out of my parents' house, and I always tell them there's no way I can even afford to live in Chicago. I feel like if you buy a house, it's still as if you're renting.
Reality : Average home price in USA is now $400K. Rents are skyrocketing. People are paying $1500 to $2K in monthly rent but cant qualify for a $1700 mortgage. The Industry is insane.
What example do you have of this disparity? Honest question, because that makes no sense. Also, the median (not average, which is misleading) capped at 480k in Q4 2022 and has dropped sharply since then.
@@nwj03a Are you really baffled that many people are paying $1500 in rent but can't qualify for a similar sized mortgage ? Here's why : 1. Down payment 2. Credit Score 3. Debt to Income ratio 4. Income doesn't meet Bank's requirements. 5. Length of employment at current job. There are a million people out there that can't qualify for a mortgage that are paying $2k or more in rent. They are trapped. You need to get out more.
Coming from a long term home owner. Do not let your mortgage payment with and escrow, be more then 25% of your total take home pay. You will be so much more happy in life, when you you can make the mortgage payment, and still have money to go out to eat, go on vacation, and fix things when they break.
We did not escrow ANYTHING. Our mortgage is just mortgage, we pay our own tax and insurance. Much simpler and I know that is all paid, not depending on somebody else to pay it.
@@gungun8465 - figure out how much $ your household brings in per month. Divide # by 4 and that is the amount you dont want your complete mortgage payment to exceed.
My sister has a 3 bedroom in Arkansas on 3acres for 52k. Her and her husband got a 30yr loan 😂🤦🏼♀️. I was like omg you could have paid that off in two yrs and still bought useless stuff on y’all income. They’ve owned it for four yrs now. (With covid now they are on unemployment and have no saving!)
I think it's best for a couple buying a house to base their purchase on only one income. That does two things: First, it limits the amount of house they can buy. Second, it makes it possible to keep the house if one of the incomes suddenly stops. Things like a pregnancy, a lost job, or an extended disability are far easier to handle if your house payment is low. If you can't make house payments on one income, then you're constantly under the threat of losing your home, and that's not a good feeling. (edited for spelling)
I have been waiting for 6 years to buy a house. Waited for my fiance to finish school, got married, had kids, kids are now 5 years old and we are ready to buy. During those years of waiting, been able to save a 20% down for a 🏠; Have one year emergency fund; built my credit to low 800s. My advice is to wait till she is done with school before buying. You want to walk into a house knowing exactly what you are operating with financially. Not saying it will happen, but she can fail some classes and what would have taken two year to graduate will take 4 years, therefore costing you more money.
Thomas Morrison yep. Plus the other accessories like a lawn mower, etc. can keeping those gutters and water sprouts clean and replacing busted pipes and more! Some people don’t understand the added expenses!
Buy the smallest decent house that doesnt have a bunch of extra stuff you dont need/use in a good neighborhood. I have a 2br/2ba apartment that I paid cash for, even though I can afford much, much more. I took the difference and invested it. One of the best decisions I ever made. I feel such releif and security by having a small, affordable, paid- for home.
I think it varies per situation. I started out at 40% for years and now at 35%. I have no debt and am very responsible with money so I've been fine and am half way to paying off the house. I think the most important thing is you have to be disciplined when it comes to money before you can even think about owning a house.
We were house poor for 15 years 80% of our salary goes to our mortgage and property taxes. We lived with just the basics and sometimes our salaries were not enough, there are times our cellphones would get cut for non payment and finally year 2018 we paid off our mortgage. We have a fully paid house 20 mins away from San Francisco Golden Gate Bridge, I wouldn’t say I regretted what we did especially during this covid19 pandemic. We feel secure that we wouldn’t be homeless
perotal we don’t make a lot of money as we were just Baristas in a coffee shop making $12.00/hour plus tips. For a few years I sold items on eBay and became top rated seller selling north face jackets.that was year 2012 i would use the income to pay for our property taxes. i didn’t even have the capital so I would just go to the outlet tell them to hold some items then would list them when I see my items sell I go back to the outlet and pay for them with credit card then ship to the buyer. Life was really hard for us but it was all worth it and exciting
beth knox because you avoid paying mortgage insurance...if you put less than 20% down you have to pay mortgage insurance which is a bs charge and can be 50-150/month depending on how much down you put.
My wife and I built our modest ranch house 26 years ago and at the time the PITI was 34% of our income. We felt comfortable with this at the time because we're so frugal in other areas of our budget. Despite many jobs losses, injury and even serious illness we never had a problem making a single mortgage payment, even during a 50 week unemployment stretch during the great recession and paid the mortgage off 5 years early. If you're frugal, you can stretch that 25% but ONLY if you're willing to think outside the box with other expenses.
Thank you for the video Dave! We got our 1st house at 23 and bought what we could afford at the time, while I was still at school and working a restaurant job. We were still house poor, but didn't have any extravagant expense. I was even able to save up for a small car on her finger when I proposed on my graduation day. After I graduated, we bought another house and still kept (and still have) that house as an income property (in Seattle). Make due in a smaller house now, then that house can be an income generator when she graduates and you have kids. You will be upgrading/moving into another house in an average of 3-5 years anyway.
@Backcountry Bobcat That's not throwing money away. That's buying time. If you pull the trigger without 20% now you're dealing with PMI. Then once you're in the house your monthly expenses will certainly average more than $900. Take your time
I would base off the low income. Our income has increased over the years and we did not upgrade cars or house. Just save. Don’t spend money you don’t have yet.
@@The_Signal_Trade so true. I made the mistake of buying at the end of 2008. I closed on January 8th 2009 if I had waited another six months the same house I bought was $60,000 less
In my opinion, if you can get a home payment at 25% of just your income, if your wife is going to stop working for a while, that would be good. Beyond that, I think choice of home should be based on what works for your lifestyle, location, and needs. For example, someone who moves a lot would likely be better off renting. Someone who has a big family will likely need a larger house. A house near where you work is usually good.
@Dominique A Okay, I will bite. Why do you think owning a home depreciates like a luxury car? All my homes have appreciated with time. Repairs and maintenance (R&M) on our investment property (including painting, lock changing, cleaning, new carpets, repiping once, etc.) has totalled $25K over 14 years. All while the home has appreciated $220K (according to Redfin and Zillow), we are building equity as our tenant pays, and we get a monthly income after factoring in mortgage, taxes, insurance, R&M, etc. Keep in mind, 100% of your rent has zero return.
@Dominique A who's better off when one is in retirement. Someone who has a paid off house and only pays a yearly property tax payment, or someone with a monthly rent payment that gets raised annually and at the mercy of a landlord?
That's why one shouldn't buy too much house, always leave a buffer for things that will break or need to be repaired. Meanwhile I'm building equity and paying low fixed interest, while renters are at the mercy of thier landlords.
Our mortgage used to be 25%, now it's about 14%. I think the biggest financial mistake people make when they start making more money is buying a bigger house. Save/invest the extra!
If you look back at colonial times, as the farmer/land owner prospered, they didn't move. They simply added on an addition. The trick is always buy a place with a lot of land.
My first place, I wouldn't even let the mortgage company tell me what I was approved for. I knew it would be ridiculous. I asked if I could afford or be approved for 100k. The woman laughed at me and said, "Yeah." In 2012, I moved back to an old location to be near my family. I took a 75% pay cut. This time when I bought, I made a budget considering all aspects of life - house, food, utilities, etc, all on a $10/hr budget. I make 46k now, but I know that, if something happened to my job, I could find something making at least that amount. I ended up with a little 1 bedroom home, which has exactly what I need, no extra, unused spaces, and I paid $76k. Given everything that's going on now, I'm so glad I went on the more frugal side.
Depending on country you live in, if you plan on having a baby or two then simple max house payment is when you can live off one single monthly income (for example man works and woman stays home with kids). For some reason vast majority of my peers buy a real estate they cant afford to pay when they decide to have a baby.
My advice is to wait till she is done with school before buying. It is best to walk into a house knowing exactly what you are operating with financially. You never can tell what will happen while she is in school....She could fail some classes and what would have taken 2 years to graduate will take 4 years, therefore costing you more money, thus causing financial, emotional stress to your relationship.
My oldest sister (she’s now 58 iirc) decided to get a degree in accounting, as a result of a work injury settlement to retrain and switch a few years ago. She kept failing on the higher math classes, having to take them several times, big time delays for progress. She’s got awhile before a bachelors regardless of how well she does, because she can’t be a full-time student. She was counting on an orderly progression of school completion. She also ended up using most of her 401k during this time. I was thinking as you, but not as Dave was: I was amazed he didn’t bring that up at all!
The wife and I bought a duplex and live in it. The mortgage payment after rental income is 25% of 1 WEEK of our take home pay. If the tenant for some reason isn't paying rent, the mortgage is 75% of 1 WEEK take home pay. Its a very very relaxing lifestyle.
@@meymay11 we just started but it is already a easy easy way to live. We just looked around and found a duplex that costed a little over what we make in a year. We still have to complete baby step 2 but the plan is to have this place paid off and be totally debt free in 4-5 years.
Why do people look to buy the most expensive house they can afford... I'm looking to buy the CHEAPEST house with the biggest down payment and then pay it off ASAP
Pretty straightforward answer. With changes in income and with kids coming in a few years that will probably cause you to move anyway, hold off on a house purchase until your situation is more stable. For now, just live in what you need/can afford with your current situation.
At a great time this came up because I've been trying to figuring out , how much of a house I can buy with my income ? GREAT INFO. Today Dave's Titles/videos are ON POINT.
It’s so different here in Europe.. rarely people use credit cards, banks dont allow credit if you already have 1-2 cards (amount of 1-2 monthly salaries). We dont have store cards, where you can get in debt. Our schools are 500-2000€ per year (“normal” college). And you can be without degree to have a good job.
Earlier today I went to the bank and asked for a cashiers check withdraw to the sum of $440,226.70 paid to the title company on my first home. It was tough, while sitting there waiting for the bank teller to go get that cashier's check as I logged onto my bank app and see my savings of $449k drop down to a little over $8k remaining, BUT good to know I don't owe on a monthly mortgage and lose out on interest over X-years. Good feeling to know I DEFINITELY have a roof over my head for life during "trying times". That said, house is paid for, 2014 Honda Accord is paid for, an "emergency fund" of about $160k. I think I'll be fine 😜👍😂 ,,,
That's great, but I really hope you didn't have $400k+ sitting in a checking account for years earning near zero interest. Remember, inflation is always happening so if you're not earning interest you're effectively losing 2-3% per year.
A few years ago, I was approved for a loan that would've been ~110% of my take home pay w/o ot... I basically ran out of that place. I was making a little over 40k and they offered me a mortgage for a house in the 300s
Mannymd that’s part of what caused the housing crisis in ‘08. They call it predatory lending, which it is, BUT there were also people stupid enough to think taking the money was smart. You were very smart to run out of the place.
$300,000 is NOTHING in California. Houses easily go for like $700,000 here. My parents bought a house for 250k in 1997. It's now worth 850k. There is no hope for anybody here. I'll have to move out of state for sure.
I make 85k a year (not including the extra 15-20k annually from OT). 25% of my take home is 967 per month 😂 you cant rent an apartment with that number lol
Sometimes I wonder if my wife and I made a mistake buying a house too young and unprepared (we were 20 years old, 25 now) but now we have 90k in equity so I’m thinking we made not such a bad choice
I was a natural caretaker and at times in my life, I lived Free with Relatives and took care of them in lieu of rent. I sometimes had the master bedroom because they could not do that tub anymore and had to use a room with a walk in shower. I wiped a lot of hiney of course but I worked in caretaking fields anyway. I still worked other jobs and stuck all my extra pay away for later. Of course, I'm not young any more and I'm the one who may need someone to move in with me and take care of me sooner rather than later. Too bad I am not sure people are as trustworthy as I was back when I did it.
I’m debt free rebuilding my emergency fund and saving for a downpayment. I can’t wait till I’m able to purchase real estate in full and build my net worth 😩😩😩
dusty maloney thank you it’s tough I’m sacrificing a lot but I know it’s for the greater good just that sometimes I get discouraged. I’m 22 working 2 jobs debt free
I didn't have Dave Ramsey when I was young so I established my own strategy soon after I got married at 19 and was broke (still married) my rule has been NEVER buy a house that cost more than you make in one year !!!!!! We lived in a house trailer in a mobile home park to start, learn to make more money!!!!!!!!!!! you can do it!!!! As you make more money nothing wrong with upgrading your house for your family.
I agree.. here in the SF area I could only afford to rent a bedroom for a quarter of my income and I have a great job. I’d have to go to Stockton to find something in that range 😬
Do not buy a house based on a dual income in this situation. Base it on his income. They are in their 30s. They will need to start their family relatively soon. When kids come around, she may want to stay home or they will be strattled with the extravagant cost of childcare for babies/toddlers. Don’t limit your options where you feel you can’t be with your babies if you want to because of the house you bought.
Dave is right as usual, and if you can buy your first home based on just your income at under 25% of your gross with a 15-year loan, that is a safe place to be. More than 25% means you will have very little left over to invest the 20% you should do to get financial security in 35 years. When you are blessed with your two children, under 20% on one income may make even more sense. It will also help to buy at below the median price for the zip code where you want to live. In 35 years as a Realtor helping buyers buy, not one has ever said "We sure wish we would have bought a bigger more expensive home." if you buy a home that will have a basement or upstairs space that will be easy to add a BR or two, all the better.
We didn’t follow the 25% tip because we plan to live in this house forever and our income will likely increase. Everyone’s situation is a little different. So glad we followed Dave’s advice to have an emergency savings!
the 25% rule is ridiculous, especially in CA. the rule of thumb is 36% of your GROSS pay on a 30 yr mortgage, not 25% of take home pay on 15 yr mortgage lolol
25% is comical. Good luck! Here in the northeast, if you want shelter over your head and aren't making 180k you're looking at 80% of take home going to these nonsense mortgages.
Bought a house a couple of weeks ago and I’m scared. But I was so used to live in a small apartment with low rent. But the house came down in price after appraisal and I have good savings since I didn’t spend it on stuff at all. I’m probably too cheap
I have lived in 3 houses from 34 to age 38. I sold my first house 350% more than I paid for it. I sold my second house for 150% more than I paid for it, and my current house is worth 250% more than I paid for it. Search Bank REO's, HUD, Foreclosures, and understand that you will look at 100 houses and make 25 offers for every 1 they say yes to. My 3 yeses allow my family of 4 to live way above our means, if we chose to, because we are not house poor.
Just bought my first home in Canada, although his advice is sounds the real world is quite different right now. Houses in my city often go for 100-250k over asking and the AVERAGE detached home price in my city is 750K. Advice to navigate this type of situation would be interesting.
I hate to say it but math is the real world. If your house payment is eating up your income, it's eating up your income. As Dave says and it's true, you don't get a pass on math because your certain situation. Sure you can creep up to 30-35% of your income but life happens, something breaks, a worldwide pandemic cuts down on your OT at your job, whatever and now what used to be 30-35% is now 50-60% and you're staying up at night moving money around to try and make ends meet....
True. My healthcare premiums almost doubled when I had a kid (recently) and now my wife is banking 8% of our take home into a college fund. Haven't even started childcare yet. Unreal!
@@jasonharris765 right, people call in like "I'm 100million dollars in debt and my wife wants 20 kids" & Dave would be like "why not have 21 kids they don't cost anything"
is the 25% rule just on the mortgage? so im about to buy a house and the mortgage is going to be 20% but with tax, insurance, and HOA, and utilities it jumps up to almost 35%. which number do I go off of?
I live in Sacramento where the 25% rule doesn't apply to rent an apartment. I pay around 28% of my income to rent and 60% if i decide to buy a house. What to do in this situation?
In 1977, a buddy and I were driving thru an upscale neighborhood. He stopped in front of an expensive new home and told me to notice the lighted chandelier over the dining room table. He told me that the folks living there had no other furniture, slept in sleeping bags and lived on a beans, rice, hot dogs, pork 'n beans type of diet. He went on to say that they had bought into the argument they should buy a home that they could only finally afford in the future, someday. The old rule was to consider buying no more than 2 - 2&1/2 times your annual income. That was my own approach and I had it paid off in 19+ yrs.
When he says 25% Of your monthly take home is he also considering your tithing and your investments for retirement? Are the utilities also included in that
Journey with Cerney- Stock Videos I would assume so, yes. The 10% for your tithe & 25% for the home are taken out of what you get after taxes. If you use a 401k, that percentage would be before taxes obviously. No, utilities don't count in the mortgage calculation.
We're a little above what Dave recommends. 4000 takehome every month and 1300 mortgage. It's tight some months, other months it's not bad, but we're never moving again. Going to pay off the truck by year end, then pay back a small loan from my parents, then start whittling down the house principal.
My wife and I both work full time and we want to buy a house. First, we want to move where the housing market won't eat up our income and savings. While also getting jobs that roughly make us the same amount.
good luck if you want the big money you gotta pay. Washington state you can get a 1900s house for about half a million but they also pay my wife 140k a year when she was making 60k being a nurse in the south. My pay went from $20hr to $40hr, so yes we might have to pay 700k for a good big modern 4bd house 2bth, but we make close to 250k a year so we should be able to afford it but what I plan to do is build and not buy. We can get a nice 4bd house without the Garage taking up half the house for close to 300k new and buy some utility land for around 50k-100k and stay in our budget.
When I had my apartment my rent was 1,010$ so when I was looking to buy a house my goal was for the monthly payment (escrowed) to be as much or less than my rent
If I bought a house that was 25% of my take home pay, My payment would be $852. I'd have to move out of NY for that. And when I do, my salary would drop, thereby requiring a smaller payment.
I start with understanding what house do I need? Next, I'll look at what I can afford. If I can't afford what I need, stop. If I can afford more than I need, Hooray for me, but I really want to know why I'm going above my needs. Not start at the top just because.
I’m at 56% of my income (after maxing out my matching 401k and paying insurance) but I don’t have any other debts at all. Plus I have 3.5 years of mortgage payments saved in semi liquid investments. I’m ok with it based on that and the fact that my girlfriend will likely start brining in some money once we move to the area. And if I can refinance to a better interest rate, then I’ll have good breathing room. I don’t recommend this for a typical person but with housing only going up, I really don’t feel like putting it off for 5 years while burning 30% of my take home on rent.
Do 25% of the low point of where you are at, not the middle. That would be the safest bet and you can always sell and buy a bigger/better home down the line sometime.
You have to move little by little, I make only $36,000 a year. I got a part time job a while ago just working at a restaurant. With that new income I make about $54,000 a year. I save about $31,000 a year, in two years I will save up a down payment of 60k. Buy a one bedroom condo for 120k. Pay the mortgage of 60k in 2 years and then sell it and move into a 180k 2 bedroom condo, rent the other room and only have 60k to pay off. Keep doing that untill I get a house or think it's enough. It is doable, people just don't want to put in the work. I work 70 hour work weeks though, Monday through Sunday.
I'm 30 and live in Northern California currently saving for a condo hopefully within 5 years then rent it out and purchase a bigger house to actually live in. Roth Ira is currently stacking so I'll keep this plan and see what happens
I thought your entire shelter costs are supposed to be 25% of your income. Including all utilities, fire insurance, property taxes, and emergency funds for repairs as well as upkeep?
mobile homes are great , people tend to think its trailer trash but honestly that is not a bad thing . . . its better than what a lot of other people around the world are living in rn ( which is sad, I am grateful to just have clean water ) .
Don't delay buying property (or buy property for that matter) because you are speculating on a future event, buy because you are ready and your numbers work out.
Calculate your monthly mortgage payment: bit.ly/3AVutFE
Does the 25% house payment amount recommend include all expenses associated with home ownership (property taxes, utilities, property insurance, condo fees?) Or just mortgage?
@@luckyandblessed no
Was approved for a mortgage of 300k at the age of 22, but decided to only spend 220. Still live in this home 5+ years ago and love it. The monthly mortgage payment (with property tax) was only 20% of my monthly income. Didn't want to be house poor and wanted to travel (which I did) and very glad I went this route.
Now doing foreclose property management, we see A LOT of people who bought more then they needed to feed their ego's. It's sad to see but they put themselves in that situation. Be smart.
How did you get approved? I'm 23 and plan on start saving for a down payment. I want to increase my chances of getting approved! Currently, my FICO score is 748 and my Transunion score is 754.
@@avapilsen Probably makes a lot more than you do
Me too. I was approved for $300K CDN but house a house for $125000K CDN instead
lucky. nowadays 220K cant even get you an RV.
At this rate, I think I'll probably retire with a mortgage payment of $1000 a month. That's about the best I can do I think.@@NK-vw4ms
Big unspoken problem with home buyers is not budgeting for home maintenance. Plan on about 1-2% of your home value. HVAC units break. Fences fall down. Plumbing leaks. Paint fades. Plan on it.
@Stuart Hollingsead I live in the suburbs of Chicago-23 and looking to start saving for a down payment so I can move out of my parents' house, and I always tell them there's no way I can even afford to live in Chicago. I feel like if you buy a house, it's still as if you're renting.
Yes, A new HVAC can be well over $7000.
@Stuart Hollingsead Do the math again. Typical 30 year loan you pay double the selling price of the house in interest.
@@avapilsen just house hack
Don't forget property taxes as well, especially if you live in a blue state--they love to milk ya.
Reality : Average home price in USA is now $400K. Rents are skyrocketing. People are paying $1500 to $2K in monthly rent but cant qualify for a $1700 mortgage. The Industry is insane.
That’s why you don’t listen to this idiot who couldn’t control himself and build credit
What example do you have of this disparity? Honest question, because that makes no sense.
Also, the median (not average, which is misleading) capped at 480k in Q4 2022 and has dropped sharply since then.
@@nwj03a Go knock on 1000 doors then tell me how many could qualify for a $430K Mortgage today. Young people today, are screwed.
Answer the question.
@@nwj03a Are you really baffled that many people are paying $1500 in rent but can't qualify for a similar sized mortgage ?
Here's why :
1. Down payment
2. Credit Score
3. Debt to Income ratio
4. Income doesn't meet Bank's requirements.
5. Length of employment at current job.
There are a million people out there that can't qualify for a mortgage that are paying $2k or more in rent.
They are trapped.
You need to get out more.
Coming from a long term home owner. Do not let your mortgage payment with and escrow, be more then 25% of your total take home pay. You will be so much more happy in life, when you you can make the mortgage payment, and still have money to go out to eat, go on vacation, and fix things when they break.
We did not escrow ANYTHING. Our mortgage is just mortgage, we pay our own tax and insurance. Much simpler and I know that is all paid, not depending on somebody else to pay it.
Hello can you explain it with some maths please?
@@gungun8465 - figure out how much $ your household brings in per month. Divide # by 4 and that is the amount you dont want your complete mortgage payment to exceed.
Yeah you can't do that here in California so...
Not in nyc baby lol
General rule of the thumb:
Don’t spend money you don’t have and assume you will have.
Got a decent small house on 1 acre in Michigan for 69k, paid it off in 34 months. Yay!
Man that's cheap as chips
Nice
My sister has a 3 bedroom in Arkansas on 3acres for 52k. Her and her husband got a 30yr loan 😂🤦🏼♀️. I was like omg you could have paid that off in two yrs and still bought useless stuff on y’all income. They’ve owned it for four yrs now. (With covid now they are on unemployment and have no saving!)
Swampcrawler LS1 that’s awesome. Congratulations
@@CesarFernandez-bs2vy thanks, it wasn't easy. But now so much less bills!
I think it's best for a couple buying a house to base their purchase on only one income. That does two things: First, it limits the amount of house they can buy. Second, it makes it possible to keep the house if one of the incomes suddenly stops. Things like a pregnancy, a lost job, or an extended disability are far easier to handle if your house payment is low. If you can't make house payments on one income, then you're constantly under the threat of losing your home, and that's not a good feeling.
(edited for spelling)
Exactly what I’m doing. Don’t want to tie myself up with a huge monthly payment
Exactly what we did!
This is a really sound strategy👍🏻
Wow this is excellent advice!
Yes! This is how my husband and I live. Your monthly bills should reflect one income and don't waste the others income on garbage.
I have been waiting for 6 years to buy a house. Waited for my fiance to finish school, got married, had kids, kids are now 5 years old and we are ready to buy. During those years of waiting, been able to save a 20% down for a 🏠; Have one year emergency fund; built my credit to low 800s. My advice is to wait till she is done with school before buying. You want to walk into a house knowing exactly what you are operating with financially. Not saying it will happen, but she can fail some classes and what would have taken two year to graduate will take 4 years, therefore costing you more money.
@trufiend138 According to Dave anything paid off within 15 is already pretty good
Whoever said women were greedy?
The guy calling in sounds kind of dumb and not very dependable anyway.
Very good advice. Home ownership is much more expensive than people think with mortgage, insurance, repairs, regular maintenance, taxes, etc.
Thomas Morrison yep. Plus the other accessories like a lawn mower, etc. can keeping those gutters and water sprouts clean and replacing busted pipes and more! Some people don’t understand the added expenses!
I just found Dave and I appreciate that he’s brutally honest!
Buy the smallest decent house that doesnt have a bunch of extra stuff you dont need/use in a good neighborhood. I have a 2br/2ba apartment that I paid cash for, even though I can afford much, much more. I took the difference and invested it. One of the best decisions I ever made. I feel such releif and security by having a small, affordable, paid- for home.
do you perhaps live in the middle of nowhere, that you think a 2br/2ba is a small apartment XDXDXD clown
I think it varies per situation. I started out at 40% for years and now at 35%. I have no debt and am very responsible with money so I've been fine and am half way to paying off the house. I think the most important thing is you have to be disciplined when it comes to money before you can even think about owning a house.
We were house poor for 15 years 80% of our salary goes to our mortgage and property taxes. We lived with just the basics and sometimes our salaries were not enough, there are times our cellphones would get cut for non payment and finally year 2018 we paid off our mortgage. We have a fully paid house 20 mins away from San Francisco Golden Gate Bridge, I wouldn’t say I regretted what we did especially during this covid19 pandemic. We feel secure that we wouldn’t be homeless
Couldn't you have been secure with a house that didn't take up 80% of your income ???
P Tc 👍🏼😊
perotal we don’t make a lot of money as we were just Baristas in a coffee shop making $12.00/hour plus tips. For a few years I sold items on eBay and became top rated seller selling north face jackets.that was year 2012 i would use the income to pay for our property taxes. i didn’t even have the capital so I would just go to the outlet tell them to hold some items then would list them when I see my items sell I go back to the outlet and pay for them with credit card then ship to the buyer. Life was really hard for us but it was all worth it and exciting
P Tc awesome, how much is your house worth?
Deeken Wheeler it’s about 600k it’s a small 2 bedroom 1 bath waking distance to UC Berkeley and with no traffic can go to Golden Gate Bridge in 20mins
Eh, I just buy based on whether we can afford on one income...plus 20% down is a must. Pre approved for $500,000, house we bought was $225,000.
Why is 20% a must?
beth knox because you avoid paying mortgage insurance...if you put less than 20% down you have to pay mortgage insurance which is a bs charge and can be 50-150/month depending on how much down you put.
@@LovePatience32 also if you put 20% down your principal is lower along with your monthly payment.
My wife and I built our modest ranch house 26 years ago and at the time the PITI was 34% of our income. We felt comfortable with this at the time because we're so frugal in other areas of our budget. Despite many jobs losses, injury and even serious illness we never had a problem making a single mortgage payment, even during a 50 week unemployment stretch during the great recession and paid the mortgage off 5 years early. If you're frugal, you can stretch that 25% but ONLY if you're willing to think outside the box with other expenses.
Thank you for the video Dave! We got our 1st house at 23 and bought what we could afford at the time, while I was still at school and working a restaurant job. We were still house poor, but didn't have any extravagant expense. I was even able to save up for a small car on her finger when I proposed on my graduation day. After I graduated, we bought another house and still kept (and still have) that house as an income property (in Seattle). Make due in a smaller house now, then that house can be an income generator when she graduates and you have kids. You will be upgrading/moving into another house in an average of 3-5 years anyway.
Dave is 100% right. Don’t go too high on your mortgage. I made this mistake 10 years ago.
What's your situation now?
As a 23 year old looking to buy a house soon, this video came out at the perfect time
How much do you have saved? Just curious because I'm looking also but not sure I should have saved before I do purchase.
Facts
@Backcountry Bobcat That's not throwing money away. That's buying time. If you pull the trigger without 20% now you're dealing with PMI. Then once you're in the house your monthly expenses will certainly average more than $900. Take your time
I have 8 thousand savedtrying to buy a 68,000 house with fha pmi won't be much I'm still looking at 600-700 month morgage or less
@@javontedonuts1034 Where the heck can you buy a 68k house? Is it in shambles?
I would base off the low income. Our income has increased over the years and we did not upgrade cars or house. Just save. Don’t spend money you don’t have yet.
Definitely agree to be more conservative with all this uncertainty, but this could also bring opportunity to get a great deal on a home!
Once you see Warren buffet buying up real estate then it's time to buy!! Xd
The deals will most likely be better later on.
Wait 1.5 to 2 years the deals REAL deals havent to begin. I KNOW.
@@The_Signal_Trade so true. I made the mistake of buying at the end of 2008. I closed on January 8th 2009 if I had waited another six months the same house I bought was $60,000 less
Your beautiful.
In my opinion, if you can get a home payment at 25% of just your income, if your wife is going to stop working for a while, that would be good. Beyond that, I think choice of home should be based on what works for your lifestyle, location, and needs. For example, someone who moves a lot would likely be better off renting. Someone who has a big family will likely need a larger house. A house near where you work is usually good.
Maintaining a house can be very expensive! That is all. Thank you for reading my comment.
lol, it definitely can be. It is almost as expensive as making a landlord wealthier.
@Dominique A Okay, I will bite. Why do you think owning a home depreciates like a luxury car? All my homes have appreciated with time. Repairs and maintenance (R&M) on our investment property (including painting, lock changing, cleaning, new carpets, repiping once, etc.) has totalled $25K over 14 years. All while the home has appreciated $220K (according to Redfin and Zillow), we are building equity as our tenant pays, and we get a monthly income after factoring in mortgage, taxes, insurance, R&M, etc. Keep in mind, 100% of your rent has zero return.
@Dominique A who's better off when one is in retirement. Someone who has a paid off house and only pays a yearly property tax payment, or someone with a monthly rent payment that gets raised annually and at the mercy of a landlord?
Seems like there's a deeper story behind this comment. 😆👍
That's why one shouldn't buy too much house, always leave a buffer for things that will break or need to be repaired. Meanwhile I'm building equity and paying low fixed interest, while renters are at the mercy of thier landlords.
Our mortgage used to be 25%, now it's about 14%. I think the biggest financial mistake people make when they start making more money is buying a bigger house. Save/invest the extra!
If you look back at colonial times, as the farmer/land owner prospered, they didn't move. They simply added on an addition. The trick is always buy a place with a lot of land.
@@AStanton1966Yes, if you can afford it. Although, land costs extra money to maintain.
@@kbanghart A radio talk show host described it best once. He said, "Land is an alligator--it eats!"
My first place, I wouldn't even let the mortgage company tell me what I was approved for. I knew it would be ridiculous. I asked if I could afford or be approved for 100k. The woman laughed at me and said, "Yeah."
In 2012, I moved back to an old location to be near my family. I took a 75% pay cut. This time when I bought, I made a budget considering all aspects of life - house, food, utilities, etc, all on a $10/hr budget. I make 46k now, but I know that, if something happened to my job, I could find something making at least that amount.
I ended up with a little 1 bedroom home, which has exactly what I need, no extra, unused spaces, and I paid $76k. Given everything that's going on now, I'm so glad I went on the more frugal side.
What if the market crashes and the house is now worth 50k. Will u be happy then ?
That's exactly what I need, a 1 bedroom apt. I feel much safer in smaller spaces and everything is within an arm reach.
Depending on country you live in, if you plan on having a baby or two then simple max house payment is when you can live off one single monthly income (for example man works and woman stays home with kids). For some reason vast majority of my peers buy a real estate they cant afford to pay when they decide to have a baby.
The house mortgage can be affordable, what will eventually hurt are the taxes.
I bought half the house I qualified for. I could have made the full amount work but glad I didn't. Don't regret it in the slightest.
Yeah but who lives in the other half of it? Kidding. Living below your means is the way to go. Especially in 2020 and the foreseeable future..
My advice is to wait till she is done with school before buying. It is best to walk into a house knowing exactly what you are operating with financially. You never can tell what will happen while she is in school....She could fail some classes and what would have taken 2 years to graduate will take 4 years, therefore costing you more money, thus causing financial, emotional stress to your relationship.
My oldest sister (she’s now 58 iirc) decided to get a degree in accounting, as a result of a work injury settlement to retrain and switch a few years ago.
She kept failing on the higher math classes, having to take them several times, big time delays for progress. She’s got awhile before a bachelors regardless of how well she does, because she can’t be a full-time student. She was counting on an orderly progression of school completion. She also ended up using most of her 401k during this time.
I was thinking as you, but not as Dave was: I was amazed he didn’t bring that up at all!
The wife and I bought a duplex and live in it. The mortgage payment after rental income is 25% of 1 WEEK of our take home pay. If the tenant for some reason isn't paying rent, the mortgage is 75% of 1 WEEK take home pay. Its a very very relaxing lifestyle.
This is what I want to do.
@@meymay11 we just started but it is already a easy easy way to live. We just looked around and found a duplex that costed a little over what we make in a year. We still have to complete baby step 2 but the plan is to have this place paid off and be totally debt free in 4-5 years.
Why do people look to buy the most expensive house they can afford... I'm looking to buy the CHEAPEST house with the biggest down payment and then pay it off ASAP
As long as it's not a dump.
So I make $25+ an hr full time and by Daves math I can afford a small shack in the middle of a corn field in Montana somewhere on 1/15th of an acre.
Exactly. You can then commute to work in Canada and your money will go a longer way.
It sucks that you can't afford anything where you live. Where I live you could buy a pretty decent place with that income.
It depends where u live.
@@thecatnextdoor12 LOL
@@thecatnextdoor12 😂😂😂
Guys, if you go even lower. Do 20% POST mortage+propertytax+insurance. In my first year and OMG it feels good not to be home poor.
Can you please explain further? I'm 23 and plan on starting to save for a down payment.
Pretty straightforward answer. With changes in income and with kids coming in a few years that will probably cause you to move anyway, hold off on a house purchase until your situation is more stable. For now, just live in what you need/can afford with your current situation.
Least expensive house in the best neighborhood. It’ll hopefully appreciate and you can turn a profit if/when you sell it.
At a great time this came up because I've been trying to figuring out , how much of a house I can buy with my income ? GREAT INFO. Today Dave's Titles/videos are ON POINT.
It’s so different here in Europe..
rarely people use credit cards, banks dont allow credit if you already have 1-2 cards (amount of 1-2 monthly salaries). We dont have store cards, where you can get in debt.
Our schools are 500-2000€ per year (“normal” college). And you can be without degree to have a good job.
where in Europe my friend ?
I'm on my way !😁
Earlier today I went to the bank and asked for a cashiers check withdraw to the sum of $440,226.70 paid to the title company on my first home. It was tough, while sitting there waiting for the bank teller to go get that cashier's check as I logged onto my bank app and see my savings of $449k drop down to a little over $8k remaining, BUT good to know I don't owe on a monthly mortgage and lose out on interest over X-years. Good feeling to know I DEFINITELY have a roof over my head for life during "trying times". That said, house is paid for, 2014 Honda Accord is paid for, an "emergency fund" of about $160k. I think I'll be fine 😜👍😂 ,,,
That's great, but I really hope you didn't have $400k+ sitting in a checking account for years earning near zero interest. Remember, inflation is always happening so if you're not earning interest you're effectively losing 2-3% per year.
elmateo77 Had it sitting in a Money Market account and was making about ~$250/month ... something is better than nothing I guess
Nice story. I could feel the pain of you describing throwing that money ar your mortgage and also the joy that comes with it.
ANTHONY N. How old are you?
Ferlydai 41-1/2
A few years ago, I was approved for a loan that would've been ~110% of my take home pay w/o ot... I basically ran out of that place. I was making a little over 40k and they offered me a mortgage for a house in the 300s
Mannymd that’s part of what caused the housing crisis in ‘08. They call it predatory lending, which it is, BUT there were also people stupid enough to think taking the money was smart. You were very smart to run out of the place.
Wow
we must of had the same loan guy
$300,000 is NOTHING in California. Houses easily go for like $700,000 here. My parents bought a house for 250k in 1997. It's now worth 850k. There is no hope for anybody here. I'll have to move out of state for sure.
Mannymd 😳
25% for a 400,000 CONDO in Southern California is 100k downpayment. That’s significantly harder to save for not even a house, a condo.
dave's teaching excludes socal lol... even with 100k/yr it's hard
My house payment is less than 25% and I’m totally fine with that. It gives me more room to save
I make 85k a year (not including the extra 15-20k annually from OT). 25% of my take home is 967 per month 😂 you cant rent an apartment with that number lol
Sometimes I wonder if my wife and I made a mistake buying a house too young and unprepared (we were 20 years old, 25 now) but now we have 90k in equity so I’m thinking we made not such a bad choice
I was a natural caretaker and at times in my life, I lived Free with Relatives and took care of them in lieu of rent. I sometimes had the master bedroom because they could not do that tub anymore and had to use a room with a walk in shower. I wiped a lot of hiney of course but I worked in caretaking fields anyway. I still worked other jobs and stuck all my extra pay away for later. Of course, I'm not young any more and I'm the one who may need someone to move in with me and take care of me sooner rather than later. Too bad I am not sure people are as trustworthy as I was back when I did it.
I’m debt free rebuilding my emergency fund and saving for a downpayment. I can’t wait till I’m able to purchase real estate in full and build my net worth 😩😩😩
dusty maloney thank you it’s tough I’m sacrificing a lot but I know it’s for the greater good just that sometimes I get discouraged. I’m 22 working 2 jobs debt free
@@ludens1526 keep going u can do it. it is worse to work two jobs and do not make it.
Same! I'm 23 and will start working full time in January for $48k! It will be my first real job ever, and I plan on saving a very big down-payment!
I didn't have Dave Ramsey when I was young so I established my own strategy soon after I got married at 19 and was broke (still married) my rule has been NEVER buy a house that cost more than you make in one year !!!!!! We lived in a house trailer in a mobile home park to start, learn to make more money!!!!!!!!!!! you can do it!!!! As you make more money nothing wrong with upgrading your house for your family.
What about 33% of take home pay? I want to continue living in CA...so 33 % feels like my most realistic option. 25% feels out of reach here.
I agree.. here in the SF area I could only afford to rent a bedroom for a quarter of my income and I have a great job. I’d have to go to Stockton to find something in that range 😬
@@kimberlyjennings618 and I wouldn’t want to go to Stockton...lol
I live in Sacramento. There are a lot of "rural" areas near the cities that you can get USDA loans for. The properties are cheaper too.
Do not buy a house based on a dual income in this situation. Base it on his income. They are in their 30s. They will need to start their family relatively soon. When kids come around, she may want to stay home or they will be strattled with the extravagant cost of childcare for babies/toddlers. Don’t limit your options where you feel you can’t be with your babies if you want to because of the house you bought.
Why buy when your wife is in school? Wait 2 years and after your wife gets a full-time job.
Exactly! What’s the rush?
For real! Its probably the wife bitching and pushing about getting a home quick
I was thinking the same thing. Buy after she’s done with school and starts working
If they’re renting, they are wasting a rent payment x 24 months.
@@Josh-px6xb because they can be qualified for something better. Can take time and feel the market.
Me: "This is my dream house"
Real Estate Agent: "Alright, that's awesome"
Me: "No literally, except in my dream it was about half this price!"
more like 1/3rd
Make $18000 a year and can only afford a studio here in orlando. Not even a one bedroom.
Dave is right as usual, and if you can buy your first home based on just your income at under 25% of your gross with a 15-year loan, that is a safe place to be.
More than 25% means you will have very little left over to invest the 20% you should do to get financial security in 35 years.
When you are blessed with your two children, under 20% on one income may make even more sense.
It will also help to buy at below the median price for the zip code where you want to live.
In 35 years as a Realtor helping buyers buy, not one has ever said "We sure wish we would have bought a bigger more expensive home."
if you buy a home that will have a basement or upstairs space that will be easy to add a BR or two, all the better.
I can afford a shoebox 🤣
don't forget property tax
We didn’t follow the 25% tip because we plan to live in this house forever and our income will likely increase. Everyone’s situation is a little different. So glad we followed Dave’s advice to have an emergency savings!
Just rent for another 2 years and save more money, then when she gets back into full time work look at getting a mortgage
It’s hard to save any money paying rent
“You’re going to be okay” .....unless a recession becomes a reality? Right????
There will always be recessions and contractions
Always remember property taxes. Even if you own your own free and clear, if you don't make your tax payment, you will eventually lose your home.
the 25% rule is ridiculous, especially in CA. the rule of thumb is 36% of your GROSS pay on a 30 yr mortgage, not 25% of take home pay on 15 yr mortgage lolol
Renting is severely underrated
25% is comical. Good luck! Here in the northeast, if you want shelter over your head and aren't making 180k you're looking at 80% of take home going to these nonsense mortgages.
I want this exact question answered today.
Bought a house a couple of weeks ago and I’m scared. But I was so used to live in a small apartment with low rent. But the house came down in price after appraisal and I have good savings since I didn’t spend it on stuff at all. I’m probably too cheap
What’s ur Instagram?
I'd suggest using your take home pay for the 25% equation, not pre tax
That's even more beans and rice
I always thought that’s how it’s supposed to be done.
@@artemtsarevskiy2785 top comment
I have lived in 3 houses from 34 to age 38. I sold my first house 350% more than I paid for it. I sold my second house for 150% more than I paid for it, and my current house is worth 250% more than I paid for it. Search Bank REO's, HUD, Foreclosures, and understand that you will look at 100 houses and make 25 offers for every 1 they say yes to. My 3 yeses allow my family of 4 to live way above our means, if we chose to, because we are not house poor.
Just bought my first home in Canada, although his advice is sounds the real world is quite different right now. Houses in my city often go for 100-250k over asking and the AVERAGE detached home price in my city is 750K. Advice to navigate this type of situation would be interesting.
Move to rural Alberta.
I hate to say it but math is the real world. If your house payment is eating up your income, it's eating up your income. As Dave says and it's true, you don't get a pass on math because your certain situation.
Sure you can creep up to 30-35% of your income but life happens, something breaks, a worldwide pandemic cuts down on your OT at your job, whatever and now what used to be 30-35% is now 50-60% and you're staying up at night moving money around to try and make ends meet....
Wow the first competent person asking a question
“The 25% rule is not magic” unless it’s the opposite and you only have 25% leftover after your house. Then you’ll magically become poor
Isn't the assumption that you are debt free and thus you should have more than 25% at that point?
Meanwhile where I live it's normal to spend 40-50% of your income on rent...
That’s obviously a clue that you need to move to a more affordable area and/or find ways to increase your take home pay.
Rent is always more than mortgage for a similar home. How else do you think people invest in real estate and make money.
"normal" is stupid
That's how it was when I lived in NYC... then I moved.
@c 560630 I think the rule is monthly payment 25% or less of GROSS income for the month, no? I forgot what it was exactly
Great Dave now do a topic on how many/much kids you can afford -_-
Lol there are lots of people that are kid poor more so than house poor 😂
Yea he doesn't answer that...he believes that's a discussion with God
True. My healthcare premiums almost doubled when I had a kid (recently) and now my wife is banking 8% of our take home into a college fund. Haven't even started childcare yet. Unreal!
@@jasonharris765 right, people call in like "I'm 100million dollars in debt and my wife wants 20 kids" & Dave would be like "why not have 21 kids they don't cost anything"
Kids are cheap, it’s the wife/mother nesting that’s the problem.
is the 25% rule just on the mortgage? so im about to buy a house and the mortgage is going to be 20% but with tax, insurance, and HOA, and utilities it jumps up to almost 35%. which number do I go off of?
Don't include utilities, but include tax, insurance, and HOA. Typically, those will all be rolled together as your "mortgage" payment.
If you're buying cash...it depends on how much cash you have on hand! Never overextend yourself.
If you are paying cash it literally only depends on how much cash you have on hand, you can only over extend yourself if you get a mortgage
@@alexc5369 good point there!
@@alexc5369 yes and no, future income will have to exceed upkeep/taxes etc
I live in Sacramento where the 25% rule doesn't apply to rent an apartment. I pay around 28% of my income to rent and 60% if i decide to buy a house. What to do in this situation?
Keep renting, move, consider condos/townhouses.
If you think thay you may be living somewhere else in five years, don't buy a house.
You can just sell it
@@stephcurry9524 Is it always easy to sell?
In 1977, a buddy and I were driving thru an upscale neighborhood. He stopped in front of an expensive new home and told me to notice the lighted chandelier over the dining room table. He told me that the folks living there had no other furniture, slept in sleeping bags and lived on a beans, rice, hot dogs, pork 'n beans type of diet. He went on to say that they had bought into the argument they should buy a home that they could only finally afford in the future, someday. The old rule was to consider buying no more than 2 - 2&1/2 times your annual income. That was my own approach and I had it paid off in 19+ yrs.
When he says 25% Of your monthly take home is he also considering your tithing and your investments for retirement? Are the utilities also included in that
Journey with Cerney- Stock Videos I would assume so, yes. The 10% for your tithe & 25% for the home are taken out of what you get after taxes. If you use a 401k, that percentage would be before taxes obviously. No, utilities don't count in the mortgage calculation.
I really appreciate videos like this, that explains the logic behind the advice. Thank you.
We're a little above what Dave recommends. 4000 takehome every month and 1300 mortgage.
It's tight some months, other months it's not bad, but we're never moving again. Going to pay off the truck by year end, then pay back a small loan from my parents, then start whittling down the house principal.
My wife and I both work full time and we want to buy a house. First, we want to move where the housing market won't eat up our income and savings. While also getting jobs that roughly make us the same amount.
good luck if you want the big money you gotta pay.
Washington state you can get a 1900s house for about half a million but they also pay my wife 140k a year when she was making 60k being a nurse in the south. My pay went from $20hr to $40hr, so yes we might have to pay 700k for a good big modern 4bd house 2bth, but we make close to 250k a year so we should be able to afford it but what I plan to do is build and not buy. We can get a nice 4bd house without the Garage taking up half the house for close to 300k new and buy some utility land for around 50k-100k and stay in our budget.
When I had my apartment my rent was 1,010$ so when I was looking to buy a house my goal was for the monthly payment (escrowed) to be as much or less than my rent
Is Dave’s rule of 25% after taxes or pre tax?
Is the 25% of take-home pay recommendation supposed to include property tax and home owner insurance, or is it solely the mortgage?
I believe all of those rolled together.
If I bought a house that was 25% of my take home pay, My payment would be $852. I'd have to move out of NY for that. And when I do, my salary would drop, thereby requiring a smaller payment.
Save a larger down payment
Most of us wud never own a house with this 25% math especially living in NY…
The ESPN of finance
I start with understanding what house do I need? Next, I'll look at what I can afford. If I can't afford what I need, stop. If I can afford more than I need, Hooray for me, but I really want to know why I'm going above my needs. Not start at the top just because.
I’m at 56% of my income (after maxing out my matching 401k and paying insurance) but I don’t have any other debts at all. Plus I have 3.5 years of mortgage payments saved in semi liquid investments.
I’m ok with it based on that and the fact that my girlfriend will likely start brining in some money once we move to the area. And if I can refinance to a better interest rate, then I’ll have good breathing room.
I don’t recommend this for a typical person but with housing only going up, I really don’t feel like putting it off for 5 years while burning 30% of my take home on rent.
My first house was 15% of my income.. 25% makes sense
Do 25% of the low point of where you are at, not the middle. That would be the safest bet and you can always sell and buy a bigger/better home down the line sometime.
I can't afford any house🤔
If you make as much as you can and spend as little as you can, you will soon enough.
@@Balnk1326 thanks and im working on both as we speak
Also, if you save enough you can reduce the mortgage you would get by enough for all your housing payments to be 25%
You have to move little by little, I make only $36,000 a year. I got a part time job a while ago just working at a restaurant. With that new income I make about $54,000 a year. I save about $31,000 a year, in two years I will save up a down payment of 60k. Buy a one bedroom condo for 120k. Pay the mortgage of 60k in 2 years and then sell it and move into a 180k 2 bedroom condo, rent the other room and only have 60k to pay off. Keep doing that untill I get a house or think it's enough. It is doable, people just don't want to put in the work. I work 70 hour work weeks though, Monday through Sunday.
Did the banks tell you? Because if you pay rent for an apartment, usually you can afford a house, or condo at least.
I'm 30 and live in Northern California currently saving for a condo hopefully within 5 years then rent it out and purchase a bigger house to actually live in. Roth Ira is currently stacking so I'll keep this plan and see what happens
Dave says monthly payment 25% of your salary? Is he talking about just principal and interest or it includes home insurance and property tax??
Just the house payment. In other works the combination of the principal, interest, taxes, and insurance.
He says 25% max of net pay per month for the house payment - what does the house payment consist of? Mortgage + what else? Pmi? HOA? Taxes? Etc
This market it crazy . We can’t find anything we want for what we’re qualified for . I want to move up the ladder , not go down .
Just the video that I’ve been looking for. First time home buyer. Thanks Dave 😀
I thought your entire shelter costs are supposed to be 25% of your income. Including all utilities, fire insurance, property taxes, and emergency funds for repairs as well as upkeep?
My understanding is mortgage/rent, insurance, and taxes. Your emergency fund and utilities are beyond the 25%.
Can you do one on how much shack I can afford next?
I just closed on a home.. 2.85 on a 30!..
mobile homes are great , people tend to think its trailer trash but honestly that is not a bad thing . . . its better than what a lot of other people around the world are living in rn ( which is sad, I am grateful to just have clean water ) .
Sorry but no way I'm living in a trailer as a behavior therapist
Should just wait 3 years for this housing bubble to pop. Sorry Boomers, we're not buying your assets at the top.
@John Lennon I thought you died in 80'?
@@ChrisMFlorida 😂😂
@John Lennon is this Yoko using John's old account?
Don't delay buying property (or buy property for that matter) because you are speculating on a future event, buy because you are ready and your numbers work out.
You might think that, but millennials are now buying using inheritance from their deceased boomer parents.
Saying no is hard. Saying Oh No is a lot harder
I wish the intro was louder
Haaa
Agreed 😆