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For those who dont know, Ramsey has been warning his followers for decadesnot to get into debt.
He does make a slight exception for buying a house, however.
The foundation of his teaching is to stay out of debt.
Yes, even when it comes to buying a home.
In an ideal world, you would save up enough money to buy a home outright.
But very few of us live in that ideal world, especially as housing prices continue to climb.
so that get your mortgage this low, youll need to think outside of the box.
Or, you could save up for longer and put down a larger down payment.
The goal, always, is to ensure you dont become overleveraged and have too much house.
This scenario would be a winning one, according to Ramsey.
The keyword here is afford.
So, How Much Home Can You Afford?
If it’s possible for you to buy a house outright, thats the best option.
If not, take your total take-home pay and divide it by 4.
Thats the mortgage payment it’s possible for you to afford.
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