Dave Ramsey's Home Buying Rules: Practical or Outdated?

Reported 2 days ago

Dave Ramsey offers strict home buying advice, recommending never to exceed a 15-year mortgage and to keep payments under 25% of take-home pay. However, as housing prices and interest rates rise, many find his advice hard to follow. For instance, to afford a typical $350,000 home according to Ramsey's standards, one would need an annual income of about $190,000. Even in states with lower prices, like Mississippi, the income requirements often exceed typical household earnings. Critics argue that while Ramsey's guidelines are sensible, they may no longer be attainable for average homeowners in today's market.

Source: YAHOO

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