Home ownership is part of the American Dream, right? But that dream can quickly turn into a nightmare if you aren’t prepared for a mortgage and everything that goes with it.
My wife and I have been married 8 years and are buying our fourth house. Our experience has taught us that your method is spot on – whether this is your first house, fourth house, or your fiftieth house! Common sense isn’t so common anymore…especially in the real estate market. Thanks for sharing your wisdom.
Hi Rachel, I’ve been listening to the Dave Ramsey show for a little while now but haven’t come across an answer to my situation. I’d like to build a home which will cost about $280K then i would have to furnish it with all the details and I’m sure that will be another $20k or so. I rent now from my folks who give me a break at $150 month to help me save. It’s basically paying my share of the monthly bills. I make $60K gross annual. No car payments and no outstanding credit card debts but i do purchase most everything on the card but pay it off monthly. ( I get 1% back this way). I own a duplex that I rent out and it does well and has $50K left on the mortgage. Also a 401k worth about $150k that i contribute about 6% every pay period. The “Ramsey” rule of thumb is to not get in a mortgage that is more than 25% of monthly take home pay but I have $30k for an emergency fund and another $190K for whatever. I was planning on using half of that $190k and getting a mortgage for the rest. I am 47 years old and didn’t want to sink all my money all at once since I am getting older and don’t know how much I would need for retirement, medical bills, etc. What is your suggestion?
At age 50 and not homeowners, is it too late in life for me and my husband to work toward that goal or could it be a profitable investment or potential inheritance for our children. Keep in mind that we still have two children to assist through college.
Thank you so much for these tips! I’m renting right now and keep going back and forth about buying. I feel like I will be able to afford the mortgage, but that’s it. I fear I won’t be able to afford house-upkeep costs that are usually covered by a landlord.
Hi Rachel, I am 63, live in California, divorced and my rent is very expensive, it is going up $250/mo. I’m thinking of using some retirement for a down payment on a condo, what do you think. I can’t afford high rent once i retire in 5 or 6 yrs.