The article discusses the challenges faced by a Redditor in deciding whether to purchase a home while following Dave Ramsey's mortgage advice. According to Ramsey, prospective homeowners should limit their mortgage payments to 25% of take-home pay and consider a 15-year fixed mortgage. However, the Redditor finds that this advice leads to a limited housing budget, resulting in options mainly comprising fixer-uppers. The piece reflects on whether Ramsey's financial principles are practical in today's housing market, raising questions about affordability and homeownership strategies.
According to this Redditor, they are in a situation where they are trying to determine whether purchasing a new home is a feasible option.
Dave Ramsey's advice, along with the 15-year belief, is that you shouldn't spend more than 25% of your take-home pay on a mortgage payment.
Dave's advice on baby steps encompasses several methods to manage your finances, including the idea of paying off your home early.
While paying off a 15-year loan sounds better than a 30-year loan, it is only true if it's practical financially.
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