if you didn't now I have had two great love's in my life doing what I do here and the real estate business I love real estate mom and dad were in the real estate business when I was growing up and three weeks after I turned 18 years old I sat for and passed my real estate license a few weeks later I sold my first house as a real estate agent what that tells you is somebody out there had a like a judgment they bought a house from an eighteen year old but even then I knew
how to sell apparently at some level so you know I've always loved real estate I love the business I love the people in the business it's a new it's a unique group of individuals the real estate business is the only business where people put glamor shots on their business card I mean it these are drama queens so they have a blast real estate people are fun that when they're at an event they're that it's a fun group to talk to because they're enthusiastic they're fired up there it's just cool and so I always enjoy sending
great real estate agents across America and our ELP program you know sending you to them to find your next home or to you know get your house listed and get it sold for the proper amount of money not giving it away especially in a hot market like this and so I just love the business and then you know some folks in that business don't like me because I tell people not to buy a house until you're ready because when people buy a house when they're broke it makes them broker that's why they call them mortgage
brokers broker and broker you buy a house you're broke you're not ready it's a curse it's not a blessing I want your home to be a blessing but we've passed this piece of misinformation around in our culture that says everyone ought to buy a house and if you buy a house is gonna make all your financial problems go away the only way that little men can get ahead is buy a house he can't afford she's a bunch of crap you shouldn't buy a house when you're broke so I want everybody get a house because I
don't everybody get out of being broke but when you buy outs and you're broke all kinds of crap loot turns loose in your life when you're in debt you don't have any money use your last dime for your down payment but you buy a house my house my house my house gotta buy a house got it my house got my house got it buy a house we don't buy a house all renting you just throwing your money away my house my house my house my house my house oh the payments the same as the rent
so my house my house my house my house my house and everybody goes and buys a house that can't afford and if enough broke people buy houses you can crash the economy y'all know that was a reference to 2008 that was 2008 joke y'all with me here if enough broke people buy a house you can crash the economy with this wrong philosophy of everybody needs a house everybody should get a house cuz I want everybody to get away from being broke so they can afford a house so get out of debt get your emergency fund
in place but if you buy a house and you don't do that Murphy will move in your spare bedroom if you're in debt you buy a house broke he'll move in your spare bedroom you know Murphy is if I can go wrong it well he'll bring his three cousins broke desperate and stupid with him and your hot water oh go out the next week and your roof will leak three days later and then the heating air will go down Oh in the sewer will stop up for the septic tank will back up I mean you're
gonna find out the joys of homeownership when you move in the house broke you are asking for trouble you're begging for it so get yourself straight get out of that get the emergency fund in place and then start saving for your down payment that we call that baby step 3b because you're after baby step three and you haven't yet started baby step four with your retirement savings because you're gonna save up for a down payment on your house then when you get ready to buy a house want to put as much down as you can
put down if you put down 20% it'd be ideal because you can avoid PMI private mortgage insurance which is merely foreclosure insurance that if you get foreclosed on it pays the mortgage company if they lose money on you if you put down 20% you don't have to buy PMI which is useless to you it's a favor you do the insurer you do for the mortgage company because you didn't put down enough down payment you put down 20% you avoid that it's about $75 a month per hundred thousand borrowed one hundred fifty bucks a month for
two hundred thousand our mortgage for PMI so like for you to put down more than that no yell at you if you don't but I will yell at you if you violate this next one never buy a house on more than a 15 year mortgage absolutely crazy don't do that don't do it don't buy a house on more than a 15 year mortgage and never buy a house on a 15-year fixed-rate where the payment is more than 1/4 of your take-home pay now you got keep in mind interest rates are what 3 percent you know
most of the time interest rates have been 10 12 percent in my working lifetime but for the last decade or so we've had these ridiculously wonderfully low interest rates and so you know if you can't afford to do it right now you're not gonna be able to afford to do it right ever so right is you know 15 to 20 percent down hopefully a 15-year fixed where the payments no more than 1/4 of your take-home pay so if you're in the market to buy a house you don't buy your largest purchase in the scope of
your lifetime on a motion yeah that's the last thing you need impulse is something this size adults devise a plan and follow it children do what feels good be a grown-up if you're gonna be growing up and buy a house be growing up emotionally slow down do it right and jump on Dave Ramsey calm we got a free completely free mortgage calculator there you want to your mortgage calculations is right there we just re vamped the thing it's slick it's the best one out there matter of fact it's trending is one of the best mortgage
calculators on Google right now so just go to Dave Ramsey com click on the mortgage calculator and you can figure out what you can do with the private mortgage insurance on a $200,000 home how much it saves you a few other things to keep in mind in the home buying process in a hot market you may need to move further out of the city in order to get a price you can afford so you may be training homeownership for a commute closer to the city in most markets the more expensive it gets now certain distance
from cities that starts to become a neighborhood issue but I'm saying if you move 30 minutes out of town my County over those are sometimes called bedroom communities then that puts you in a place to do it the right kind of stuff if you'll get a high-octane real estate agent they will help you with your selection they'll represent you as a buyer's agent or if you're getting ready to sell a house get a real estate agent in your corner that knows what they're doing this is someone that has a lot of volume they sell 50
200 houses a year not 5,200 that houses in their lifetime so do this right I mean if you make a 5% mistake on a $200,000 transaction that's a $10,000 ouchy because you were too smudged you could do it yourself you don't work on your $20,000 car by yourself why would you work on your $200,000 house by yourself I'm dumb so get a pro in your corner our real estate help ease to the pros we recommend just click on Dave Ramsey comm run the Dave Ramsey comm get your mortgage calculator this is a great real estate
market you guys it's a fun time to be selling a fun time to be looking for properties real estates just fun y'all it's just fun it's not fun when you're broke and you do it wrong so do it right and we will enjoy the ride together this is the Dave Ramsey show
