Get A 15 Year Mortgage Or Save To Buy A House With Cash?

I would buy the house and enjoy it a bit. With they're income they can pay off even a 15 year mortgage rather quickly. But then on the other hand they're young. And then on the other hand what about all the wasted money on rent. Yup, I'd buy and just pay off the loan as quickly as possible.

If I read your company report, I will see you have debt

When the rates were at 3% the 30 year mortgage was a no brainer. Inflation is rising much faster that.

Cash only love it

Hmmm, Elon, Bill Gates, Bezos….and many more. They never borrowed money to invest in their businesses. Right.
Ramsey is old, old, old school and saving to pay 100% cash for your home is stupid. He just makes money by being the contrarian.
Stop making money off the uneducated, Dave.

Lender not the borrower.

My wife and I are living rent free with her parents. We are considering buying in full cash in about 4 years of saving. Reasoning is to avoid interest.

Rent is debt that you will never get back. A 15 year mortgage with a low rate is better than paying rent.

100% Dave. No debt = freedom and security. Buy what you can afford and own it all outright. The mortgage one is a tricky one because we all need somewhere to stay but certainly if you are on a good wage and can manage to save up in a relatively short time then better to avoid the shackles of the bank if at all possible. See cars though - I have absolutely no idea why people get into debt for them. They go down in value by the biggest amount when they are new and a swanky motor over a 10 year old second hand car does not improve your quality of life

Can you imagine if he waited 4 years. Guy would’ve done terribly compared to simply owning a house with a 2% mortgage

If he would have waited for 4 years or waited a year he would have not bought a house because of the pandemic house boom! No waiting if you have 35% down, get it and get out of loan in 4-5 years.

My issue is that renting is still a liability, and in essence, a liability that often involves paying off someone else's mortgage? It's the passive smoking of the real estate world, in that you are prolonging a cycle of debt.

Confused, where does he store his cash if not in a bank? He is saying he never plans to enter a bank unless buying it.

I looked at the date of this video and really hope this poor guy didn't listen to Dave's awful advice on this one.

May be because I’m stingy. I would wanna save up the cost of a house 100% while I might be living in a trailer, and pay off 100% one time. I don’t want my hard earn money go to bankers😊😊😊. I’m not sure it is financially wise or not. So far it is my stand even before I watch this show.

Not one person I know can buy a house cash... rich people advice😂😂😂

Terrible advice by Dave here. I'd agree if they were living with parents/family for free. He is a landlord himself. He loves other people paying for his properties.

This guy would be useless in Australia. If I was to wait to buy a home, I would miss out on hundreds of thousands of FREE cash. For example, I bought a home in October for $515k, I paid $25k in mortgage interest over the preceding year, but my home increased in value by $200k - so I made $175k . If I had listened to Ramsey I would be broke!!!

When you get a mortgage you pay less interest you than renting a Apartment.. so it's easier to get into a mortgage than rent and save up to buy a house.

a 15 year is a bad idea a 30 is better and pay it like a 15 year if your job or your income goes down in the future the bigger payment could be a problem nothing stays the same everything goes in cycles good and bad

Dumb advice. The price of houses are vastly outpacing wages.

How can someone living in cities save enough money to pay cash for house? Ramsey's advice is only applicable for rural Americans. Also people in cities can't pay off houses in 15 yrs.

No need to be demeaning and calling people stupid in every video. I bet that's what Dave's dad did.

When you're in debt, you must make monthly payments to your creditors. This can severely restrict your ability to save money and invest in the future.

This is why it's so important to get rid of debt as quickly as possible and start saving for the future. Investing money wisely can create a financial cushion that will help protect you from unexpected expenses and provide a foundation for long-term wealth building.

In other words, never buy a house or just get a shack

The money that they spend renting, they could put that on a nice house and pay it off

27? He sounds like he's in his 50's.

House price will go up every year. So I hope you save enough money to catch up! Good luck

Wonder what this guy ended up doing. turns out 2018-19 was a much better time to buy than his estimated 2022 lol

Great advice Dave! Debt free is the way to go.

Hope he bought before prices went crazy

How 🤔 can you save 210000 for a house

I really hope they took out the loan. 2019 was a great time to buy.

Very grateful to have you Dave!

Imagine your rent 700 a month but your dating $600 for your house a month but your house payment is $1200 a month... so why waste money on rent if you can just pay a house

I’m stupid.

Well three years later let’s hope he borrowed the money and got in before real estate went through the roof

Like it so easy to save 200-300 thousand for a house in these times..smh..I listen to him at times and he sounds like he has no clue

Fastforward from 2018 to today, price of housing has gone up about $100k. SO that takes care of your saving effort right there.

Everybody can’t be wealthy, someone has to be at the bottom. These principles are for the rich or rather comfortable in finance. Banks and CC Companies get their money from the less-fortunate. This is the way the system is set up. If it hadn’t been for the poor, there wouldn’t be any rich.

Didn’t answer his question. Probably wants to know if the price will go up

Proud of them im 35 single and hoping by 38 I can do it.

100% foreclosures happen on property with a mortgage... is that even true? You can get foreclosured cause of property taxes / insurance i thought

Just save up and buy the cheapest house/apartment and then upgrade when you save up more. I agree with avoiding mortgages, after paying off my student loans I have no interest in being in debt like that again.

This guys 27 but has the voice of a 40 year old

So pay someone else's mortgage and have no equity, or pay your own mortgage and have 94% equity. Make accelerated payments and cut your interest payments down by paying your mortgage in 5-7 yrs vs. 15. Remember, today's money is cheaper than tomorrows (inflation).

I thought Jesus didn’t want people to hoard wealth. So pay rent for four more years which you will never get the money back and lose the appreciation on the house for four years.

I get the whole cash thing but there is just some things us normal people can't buy with cash. Like a house

“The shortest path to wealth is no debt.” That works but it is literally the slowest, longest way to wealth. The truth is if the wealthy didn’t inherit it at some point they were almost certainly hugely leveraged. Now if you don’t do your homework and figure out HOW to borrow, then yes, your better off just avoiding debt. Also forget owning a decent house in our rigged home ownership system if you can’t handle debt. Also 30 year fixed with additional one or two principal payments is the way. Always has been, always will be. Mathematically and “practically” impossible to beat for almost every scenario.
I think The Bible stuff clouds his opinions.

While debt should be avoided its true i disagree that it dumb to get some car payments on a cheaper car when your starting out at work as you never really had the income to begin with everyone has to start somewhere.