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Old 10-15-2010, 07:00 AM
 
4,246 posts, read 11,985,374 times
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So I listen to his show every blue moon and heard what he thinks your mortgage payment should be.

1/4 of net monthly income on a 15yr loan term. And that got me thinking. Is it safe to say less than 10% people do this?
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Old 10-15-2010, 07:20 AM
 
Location: Brambleton, VA
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I think you are probably right.
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Old 10-15-2010, 08:44 AM
 
Location: Plano, Texas
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I would say probably less than 10%.
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Old 10-15-2010, 09:33 AM
 
Location: NJ
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Does anyone care what Dave Ramsey says our mortgage payments should be?
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Old 10-15-2010, 09:53 AM
 
Location: Union County
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I wonder how Dave Ramsey suggests people do this when median home values are still so far out of whack to median incomes... There's no possible way to meet this recommendation with our current housing stock.
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Old 10-15-2010, 11:54 AM
 
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Quote:
Originally Posted by manderly6 View Post
Does anyone care what Dave Ramsey says our mortgage payments should be?

Because it's the smart way? Do you think it's a smart idea to pay 1/2 your net ?
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Old 10-15-2010, 11:59 AM
 
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Quote:
Originally Posted by manderly6 View Post
Does anyone care what Dave Ramsey says our mortgage payments should be?
Nope.
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Old 10-15-2010, 12:01 PM
 
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Quote:
Originally Posted by MikeyKid View Post
I wonder how Dave Ramsey suggests people do this when median home values are still so far out of whack to median incomes... There's no possible way to meet this recommendation with our current housing stock.
Then shouldn't those people not buy until they have enough down to get it to 1/4? I plan on doing what he recommends on this on my next home purchase. This way if me or my wife loses a job we won't be forced to become like millions of others in forclosure.

I figure that we could get a 150k home on a 15/yr note with a household income of 140k.
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Old 10-15-2010, 12:24 PM
 
Location: Union County
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Quote:
Originally Posted by danieloneil01 View Post
Then shouldn't those people not buy until they have enough down to get it to 1/4? I plan on doing what he recommends on this on my next home purchase. This way if me or my wife loses a job we won't be forced to become like millions of others in forclosure.

I figure that we could get a 150k home on a 15/yr note with a household income of 140k.
Not knowing your personal situation, but I wonder what metro/area has housing stock at $150k for a family making $140k and sending their kids to good public schools.

Your average "how much home can I afford mortgage calculator" (using this term loosely) will put a $140k income family well into the 300s on housing. Depending on your other debt/taxes/insurance/etc, it could easily put you over $400k for affordability on a house... frankly, the list prices of homes in most metros that support a $140k income reflect this.
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Old 10-15-2010, 12:32 PM
 
14,780 posts, read 43,505,570 times
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Is good old Dave including taxes and insurance?

I have no idea where he thinks people are going to live with that kind of budget or how long he expects people to eat Ramen noodles and live in a studio to save up for a downpayment to make it possible. Here in NJ the average person would be living next to a crack den in Camden or a trailer in the Pine Barrens following his advice.
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