#FridayFinance Find more at Finance Fridays Find the latest Kingdom Way Magazine at KingdomWay.caBuying too much house can cause you to be house poor before you know it. Know how much home you can afford before you buy. Discover your mortgage options: https://goo.gl/1up9dK
In this video, Dave takes a call from Kathy in San Francisco. Kathy is a teacher with a monthly income of $4,300—but her house payment is $2,200 a month. With over half of her monthly income going toward paying off her mortgage, she asks Dave, “Should I sell my house?”
Dave’s answer is simple: the house has to go. He recommends that Kathy downsizes and purchases a home she can pay off in retirement. This creates an opportunity for her to get out of debt and start saving money now.
Dave always recommends saving a down payment of at least 10–20% on a 15-year, fixed-rate mortgage and limiting your monthly payment to 25% or less than your monthly income. This allows you to attack your debt snowball, boost your retirement fund, and pay off your mortgage quickly.
Want to estimate your monthly mortgage payment? Check out our Mortgage Calculator: https://www.daveramsey.com/mortgage-calculator
How much house can you afford? Find out here: https://www.daveramsey.com/blog/how-much-house-can-i-afford
Is your mortgage more than you can afford? Consider downsizing: https://www.daveramsey.com/blog/3-money-smart-reasons-to-downsize
THE DAVE RAMSEY SHOW
The Dave Ramsey Show channel will change the way you experience one of the most popular radio shows in the country! Watch video profiles of people just like you as they call in from Ramsey Solutions to do their debt-free scream live. The show streams live on YouTube M–F from 2–5pm ET! Watch here: https://www.youtube.com/channel/UC7eBNeDW1GQf2NJQ6G6gAxw