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You big news out of the housing market this week despite a slight increase in home prices more people are buying would sign deals up to 7%.
From last year that's pretty good so what do you need to know if you plan on buying right now.
Is this -- time to jump in Dave Ramsey's -- this Dave.
When the world was crashing you predicted housing would stabilize and once again rise why.
Well I think it's -- pace to our economy I mean I don't think it that requires some kind of a profit a real insight to say.
Housing will recover if you give enough time -- thing in the stock market when it went down now it has come back up.
And so housing is is a staple of our economy and it has recovered.
-- it real problems in Las Vegas and it's up 18%.
Phoenix -- way down it's up 23% -- house prices and as you said these contracts coming in across the nation are up 7%.
Housing is really doing real well right now I -- thinking about buying is is a good time.
That's a great time to buy how -- all the prices haven't completely recovered and the interest rates -- the lowest in in our lifetime.
So it's a wonderful -- to -- I first off you have some principals everyone should get a pen and pencil ready.
Here it is and -- number one be debt free with fully funded emergency fund before you go by.
That's in the perfect scenario correct.
Well it's what you should do -- -- home buying is a good thing and owning a home is a good thing it's a blessing.
But when you buy a home you got a student loan that's been around so long you think it's a -- credit card debt coming actors and no money.
You're broke and the car the home wind up being a curse to you so get your good solid front -- laid under -- good foundation financially before you buy I don't go through these -- is that when he gets you a few emails.
Number to have at least 20% down payment number three only go for a fifteen year term with a fixed rate and number four.
-- should be no more than 25% of your take home pay.
So those -- -- well exactly have a good.
Have a good solid down payment and you don't do it on a fifteen year fixed of these low rates is silly take out -- thirty by a little less house.
And of course don't have a payment that's too big a percentage of -- It'll come and then again the home ends up being a blessing and you're not on those broke people in the -- your house let's go to Ricky from Seattle pieces I don't plan on buying a home for another five to eight years I'm just wondering.
Is it a better time to put my down payment savings in a good mutual fund.
So -- can grow or just save it in a money market savings account which -- do with that potential down payment.
Well generally speaking -- -- the stock market has done very well.
Over a five year period of time that was certainly been -- ten year period of time where that wasn't necessarily so but prior -- the last ten years a five year or longer investment -- a good mutual fund will be fine.
You are taking some -- there it could be down.
So you've got to take keep that in mind but I personally would but mine in a good.
-- -- -- -- growth and income fund loan package Dave Ramsey on the radio every single day and always look for him.
Because he has sound advice Dave thanks so much.
Thank you Brian thanks for having me -- -- --
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