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Dave Ramsey is America's trusted voice on money and business, and CEO of Ramsey Solutions. He has authored seven best-selling books, including The Total Money Makeover. The Dave Ramsey Show is heard by more than 12 million listeners each week on 575 radio stations and multiple digital platforms. Follow Dave on Twitter at @DaveRamsey and on the web at daveramsey.com. |
A 30-year mortgage is never a good choice. If a 15-year mortgage is not in your price range, than chances are you can't afford the house. A house isn't worth 30 years of debt. If You Can't Afford A 15-year Mortgage... Dear Dave, Is there ever a time when a 30-year mortgage is better than a 15-year mortgage? Julie Dear Julie, Let’s see, how should I put this? No! If you can’t afford a home on a 15-year mortgage, it means you can’t afford the house. Period. If you currently own a house, and the only way to keep from being foreclosed on or going bankrupt is to refinance into a 30-year mortgage, you’d probably do that – but it doesn’t make it better than a 15-year mortgage. You’ll never hear me recommend a 30-year mortgage. I might tolerate one in an extreme situation, but I wouldn’t tell you to go get one. Besides, why would you want to stay in debt for 30 years? Do you have a fear of winning with money? Are you feeling so generous toward the bank that you want to just hand them piles of cash every month for three decades? The average millionaire in this country pays off their mortgage in 10.2 years. Do what smart people do, Julie. Do what people who win with money do. A 15-year, fixed rate mortgage is the only kind of home loan I recommend! - Dave |
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