Buying a house when mortgage interest rates are high - Dave Ramsey
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- Опубліковано 30 жов 2022
- With high mortgage interest rates should you wait to buy a home? In this video, Dave Ramsey discusses whether or not you should wait to buy a house. He says that even though mortgage interest rates are up, buying a home could still be a great investment.
If you're wondering whether or not to wait to buy a house, this is the video to watch! Dave Ramsey provides a balanced perspective on the current market, explaining the risks and benefits of buying now or waiting. Ultimately, the decision is up to you, but this video will help you make an informed decision.
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At Churchill Mortgage, we believe homeownership is a big part of the American dream. After all, your home is where all of life’s moments take place. That’s why we’re committed to doing what’s right for you.
Since your financial goals are personal, we want your home loan experience to be too. By building out a smarter mortgage plan that works with your unique goals in life, you can cut time and money off your loan, which allows you to build wealth. And owning a home is one of the fastest and most stable ways to build wealth.
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#daveramsey #realestate #interestrates #mortgagelender #mortgagerates #housingmarket #buyorwait
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Mortgage rates are cheap when we consider 9% inflation rate. Buy if you qualify now. Tomorrow we might see 10% APR rates.
Scare tactics now huh 🤔
I don’t care what anyone says, paying 8% interest on a house is insane. I hear people say well it was over that in the 80’s. I’m like yea…but housing prices were far FAR less than that.
Exactly
adjusted for inflation back in the 80s, they are comparable mortgage amounts to today's household incomes.
You also made ALOT less then.
That’s part of the reason the values were low. Less competitive.
That's exactly right. His logic is missing a piece in the video.
Bro 7% is high when house are 450k plus you remember teen% rates when houses were 250k theres a huge difference
It’s about the same if you calculate inflation from 1980 when the interest rates where on average 18% for a home eg: $125,000 in 1980 is equivalent to $462,000 today.
@richardflores629 what would you rather have.. 7% on 125k or 7% on 450k... whats the mortgage payment on those.. 14% mortgageon a 100k loan is way better than a 3% mortgage on 500k.
@richardflores629 what would you rather have.. 7% on 125k or 7% on 450k... whats the mortgage payment on those.. 14% mortgageon a 100k loan is way better than a 3% mortgage on 500k.
@@thethinkingmansgame5050exactly, ppl LOVE to make that argument, in the 1980s homes did not cost 1/2 a mil for a fixer upper
What Dave doesn’t tell you is that if you buy a $500k house, you can pay upwards of $450k extra just in interest alone. Interest rates do matter these days even if you can expense them for the year
100% agree. People are stupid .......8% makes no sense
I Am working on a google document spreadsheet on this to calculate the exact interest at which this does make sense considering that on a 200k house you get 2000k/month in rent etc. tell me what you all think and what am I missing in my calculations.
docs.google.com/spreadsheets/d/1HPrtWdDOCre_b0cOGuYK2dxIfa_-ch2I5Z_aOMhFUv4/edit?miehl=wxf-skzd-yit
tell Dave that those houses he bought back in the day were under $100,000, average price now is 400,000... theres a difference.
I have an 850 credit score and the interest rate quoted to me today is 7.49% Build Back Better my @$$
Is this still Dave Ramsey? I feel like in a twilight zone right now.
Yes it does go up because of property taxes and homeowners insurance so that’s not technically true!
That man has to be getting paid by the banks or he’s lost his freaking mind one or the other
At 7% you are just handing money over to the bank…not building equity for a good many years…the only solution is to save save save and buy less and pay cash.
For people who are about to pay for an priced inflated house. Here’s the difference in your mortgage at 7% $400,000 mortgage $80,000 down. your monthly payment is going to be roughly 2,632 a mouth , a year ago when it was 3% mortgage rate your monthly payment would be 1,849 a month I figured in 5000 a year in taxes 1000 a month in insurance. Do you really think your house that’s over inflated is going to stay at that price I find it hard to believe. I just don’t want people to make the same mistake I did.
here's the thing though, you don't KNOW it's inflated. if you look historically at real estate prices from 2010-today. real estate was FLAT or maybe 1%/year from like 2010-2017, the price jump in the last couple years if you amortize it over that 13 year period gets you 3-4% house price increase per year; which is NORMAL. keep renting for 3,500 a month because you don't want the 2632/month mortgage i guess.
I feel sorry for people who are listening to that clown Dave. To each of it’s own. Will be crazy to buy a house right now.
@@classics-wz1bzRidiculous. Who pay that much for rent? Unless you live in California homeland for criminals
I just bought my first house. Interest rate is 8.5%, yikes! But where I live (Northern, CA) my rent is about what my mortgage payment is. I had to do it. Also was able to secure a house through a family friend for almost $40k below asking price.
That’s awful. Hopefully you house hack it and get a second home with a better rate. Congrats either way though having a home in Cali is crazy these days. I guess we pay for the weather.
im in the samew boat im wondering did you put a cap rate on that 8.5%?
Apples to apples is a term that is said but I don’t think people appreciate it. Average house cost in the 80s $47,000, mortgage rate 19% and a income of $21,000. Rates don’t need to come anywhere near the old days to do damage. And I don’t know to many people that make almost half of their home’s value in a year. Average home today $348,000 and 45% of that is $156,000. I think locking in the “rent” though a mortgage is good but to suggest that rent will forever go up is misleading.
1985 was 17%…lowest was 3% in 2020…what if rate goes to 17% again…and the current 6-8% is the low right now?
hurts my feelings knowing a 200k mortgage today is the similar as my older brothers 270k mortgage he got at a lower rate….
And buying less with it
there's a thing called refinancing, where you can lock in a lower rate when rates drop back down to say 4%...in the meantime, if you can afford to buy then buy and build up that equity. Renting long term is throwing money away, and 'waiting to see if interest rates or house prices drop' is another 'what if' game; don't play games with your finances.
This guy is so out of touch! Houses are more expensive now. Wages didn’t grow at the rate at which price of houses have ballooned
Dave is wrong..he is out of touch.. living in his ivory tower we built for him
Dave please make a video for us California people looking to buy
Move to Arkansas ! You can buy a home!
I would not mind purchasing a house at an interest rate of 7%, you can refinance when rates drop. The problem is how expensive these houses are. My mother bought her home back in 2005 (4 bed 2.5 baths) at 200k in a nice neighborhood. A house like that now is well over 350k and that is not including interest.
Summary: IR are perceived as high. 9% is not as high as people think, if you are qualified for a loan to purchase a home, like Nike says, just do it
Here in NJ “locking in the price of the house” the way you say it is not a good thing lol especially when that same house with not much if any work done at all to it since sold for $150k less 2 years ago.
Yes plus property taxes going up each year. Locking in your “rate” is a fucking joke.
Yeah ok, not applicable to Australia. Average house in Melbourne is 1.3m . So 1% vs the current 5% is a monstrous difference and a waste of money.
Dave has his wealth tied up in housing. He is very bias towards home ownership. Very easy for a guy in his position with years of wealth accumulation to say buy a house.. not very easy game to play if your struggling to put together a deposit in a recently pumped up market with high rates.
A 570,000 in texas waa mid 3's 4 years ago. The interest rate was 2.8%. HUGE DIFFERENCE
House prices are finally going down a little. Things go down. Daves a fool to think house prices wont ever crash
I guess the question is will it go down in our lufetime😂 (those of us in our 30s and 40s)
Engaging in an individual option is fair but its performance level can’t generate high dividends. Diversification is the secret to optimal performance, that’s why I have my interest set on options based on projected growth and performance.
Refinancing costs money too, tho.
You assume that they’ll will not be a recession…..recession means unemployment….means cannot afford house payment…move out….prices only went up due to ridiculously low rates..given time, the real estate asset bubble based on low rates will blow up. The term upside down mortgage will come back to housing market.
It's now at the rate from when I first started in the industry.
And when you started the prices of houses were 30-50% percent lower.
@@neyibcastillo6446 At LEAST 50% lower. My parents keep telling me those same freaking things ''back in my days the interest was 12% so dont lose your mind over some 5-6% instead of 2-3
%'' Yeah but your bought your house in 1992 for 50k(where I live anyway). Now my dad's house is worth 450k.
Yeah go buy a house.........the problem is for example take a home before covid. Let's say 225000 before covid was the price. Now that same house is 300000 to 350000 and the payment went from 950 to 2300 to 2500 for that same house. I see a problem, do any of you see it too?
Bros missing the part where houses were affordable at those higher interest rates for minimum wage workers back then bc the upfront cost was so low. Prices have continuously gone up so unless ur a old gatekeeper like urself, your not buying something reasonable
I wonder how many people will lose their houses listening to Dave because they bought after prices were up 40% and mortgage rates were up over 200% going into a recession
He acts like 7% is low because he used to sign mortgages with 10 percent. Like yeah compare the cost of homes and income then vs now.
Dave does not recommend buying a house with a mortgage payment more than 25 percent of your take home pay. Because of this, if you actually listened to dave you wouldn't be in any type of financial panic. So no, this comment is absurd. You should really try reading the material before making absurd comments
Yeah, this is my first time listening to him. I'm not so sure about this advice
Yea Ramsey doesn’t account for taxes or reality
How would they lose their house on a fixed mortgage with a payment 25% of their income? Stupid comment.
This is the worse advise I have ever heard in my life! He doesn’t even speak about 40 years ago a home was 100k at 10% interest not today when a home is 400k at 10% interest. This guy is a joke
Couldn’t said it any better. I feel bad for people who will listen to that clown buying a house right now.
Exactly. You cannot isolate the interest rate without taking into account the sales price. This is what happened in 2008 when people assumed they could refi at a lower rate. I only agree witht buying if you can not only afford the mortgage but also the maintenance!!
Yeah it’s only 8%.. Ha!! In my area, average homes are $300,000. With the 8% interest my payment would be around $2600. I make 105,000 yearly and I can’t afford this
And for many years it is all interest..you gain no equity!
Mortgage
Dace is literally going against all of his advice.. maybe you give your money away and start over.. what a hypocrite
Too bad this country is not family friendly
Better to share a house with your parents and pool your money and pay cash and share expenses than to buy at 7% interest and just hand your paycheck over to the bank in the form of interest
Dave has totally failed his listeners
Home values will continue to decline well into the 2030's.
This man’s advice is no longer authentic. He’s being paid off
Paying 50,000 more for a house now apposed to waiting a year or two sucks more than renting. Ramsey is so full of crap.
What a colossal feck up. Do NOT stop raising interest rates. Allowing the cost of borrowing money to be next to nothing is never a good idea.
@@tammythompson9789 I think they are doing their best. Raising rates will slow down the economy. Businesses borrow money as well. It’s good no one can afford homes, prices are exorbitant in locations like FL… The economy is out of wack and raising rates is a broad way to slow people/businesses from spending (aka borrowing money.) People aren’t responsible enough for federal fund rate to be so low. People may have to sell their homes whether they like it or not if they loose their big salary… People will always sell their homes for various reasons. I agree with you though higher interest rates are hurting buyers more than sellers currently but buyers (and the Federal Reserve) hope that changes.
The Ramsey team live in a fantasy they all have money😂 due to other stuff ,ppl dnt waste ur time or lose ur properties due to this stupid programs😂 dnt be dumb enough on getting something over 6%
You must lost your mind. to say these ...
Quit misrepresenting the facts about home prices! Stick to helping people get out of debt instead of talking your book and outright lying
I want to bet Ramsey $10,000 that houses will go down Ramsey says house are going up. He is such full of crap.
Sad thing is…it’s bad for folks without a house either way… don’t buy. House prices may drop slightly but interest rates will go to 10+%.
Example:
500k now at 7%
Or
430k later at 10%.
The pain is the same except no one knows the future. With low selection and low inventory. There’s a chance prices stay the same. In the very very long run you’ll be fine even if you buy today.
Imagine someone with 16% on an 80k home. 30 years later that home is worth close or over 1mil.
Maybe with the current rate of inflation and where things are going. House prices have to keep increasing to catchup with the printed (currency) value 🤷🏻♂️
Do or regret at your own risk. Just like everything else in life 🤷🏻♂️😜
Hey Dave,,,time to retire from giving advice because you are totally out of touch with reality….
I am glad Dave said this. Folks need to listen to common sense and the voice of experience. There are also a lot of naysayers out there on social media who act as if they are authorities on real estate who are preaching gloom and doom and that the market is going to crash. As a long-time Realtor and investor, I am telling people the truth - that it is very unlikely that will happen. The data says otherwise. Also, I remember back in the 1980's when mortgages got as high as 16-18%! We bought our first home in '85 and our rate was 13.5% and we were excited as the going rate at that time was much higher, but we assumed a loan from a seller who had to sell, and it worked out great for us. OWNING is how wealth is built.
Real wages rose faster than inflation in the 80s. Real wages are negative today. Not the same thing at all.
I do agree that owning is the best plan of action. But this seems like a appeal to authority fallacy to me. Just because someone has more knowledge/experience on a subject doesn’t mean they are right. Trust but verify. Insensitive matter as well, most bulls in the housing market are the same ones that make a living from it. There’s a term in investing called talking your book. I believe Dave falls prey to this more than he realizes. The old when you have a hammer everything’s a nail.
HAHaha, we literally have never ever had a situation like this ever. your experience in this situation is absolutely ZERO. since you have no experience in this current state. sit down.
@@drazapatosif you pay 7% interest rate but your wage increase 10% every year it's going to be easier and easier to pay it.
Houses back in 1985 wasn’t in the 400k to 500k. Different things. You are fool of shit. It is very likely the bubble will burst.
Do the opposite of what he says
Unless you are crazy to listen to that clown.