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Lots of Dave Ramsey fans here, so wanted to address a common refrain re: Dave's stance on mortgages. Many have pointed out that Dave teaches it's okay to get a mortgage if it's a 15-year fixed with 20% down. We knew this going into writing this episode, and wanted to provide some context.
On Daveramsey.com, it reads, "If you’ve been following Dave for long, you know his favorite way to buy a home is the 100%-down plan—paying cash up front, no mortgage needed." We took this at face value, and that Dave's best and preferred way to buy a home is without debt -- hence why his critics take issue with it. https://www.daveramsey.com/blog/3-steps-to-pay-cash-for-home
While it's true that Dave repeatedly advises people that can't pay cash for a home (virtually everyone) to get a mortgage, this is contradictory to his overall message of living 100% debt free. It comes across to many as confusing, essentially "You should buy a house with cash, all debt is bad. But if you HAVE to use a mortgage, then get a 15-year fixed with 20% down, and do it with the one debt company that advertises on our show".
Critics of Dave have pointed out that paying for a house in cash is unrealistic for most. What we didn't have time to point out in the video is that feeling shame or guilt about compromising in getting a mortgage also isn't helpful. And for many people in most cities, 20% down on a 15-year mortgage (while keeping housing costs under 25% of your income) really isn't within reach either. Our point was simply to present popular critiques of Dave's anti-debt stance
As always, thanks for your Two Cents, guys!
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