Monday, 16 October 2017 16:19

Dave Ramsey has the Answers to Your Questions!

Written by  Dave Ramsey
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Q. My husband and I have been saving, and we’re ready to buy our first home. We found a place we both love and can afford if we do a 30-year mortgage instead of a 15-year mortgage. Should we wait and save more for a down payment so we can afford a 15-year mortgage, or go ahead and do the 30-year deal?



A. Good financial decisions can be defined as things that help you win with money over the long-term. Thirty-year mortgages are a trap. They don’t help you build wealth, and they keep you in debt. On the other hand, 15-year mortgages get you out of debt a lot faster, and being out of debt frees up your largest wealth-building tool — your income.


I would never take out a home loan where the payments are more than a fourth of your monthly take-home pay on a 15-year, fixed-rate mortgage. My advice is to either wait and save more money, or maybe look for a less expensive home in a different area.


I know you want a home. There’s nothing wrong with wanting your own house. But I don’t want your home to have you. When you get house fever, it’s easy to lock yourself into a bad deal that will follow you around and drain your wallet for decades!




Q. My brother-in-law moved in with us several months ago. He’s 32, and he doesn’t have a job or contribute anything in terms of helping around the house or with bills. I think he needs to move out, but my wife is hesitant to say anything. She complains about the situation to me, but she knows her family will be upset if we do anything. How can we handle this?



A. Responsible adults don’t behave like bums, and I don’t care what the rest of the family thinks. This issue is between you and your wife. You two are the only ones dealing with this, so it’s easy for others to chime in about what should happen.


You shouldn’t just kick the guy out, but you do need to get busy formulating a plan that will allow him to get back on his feet. Have a gentle talk with him about the situation and his future, and tell him things aren’t going to continue on the same path. Let him know he must have a job within 30 days, and 30 days after that he has to move into his own place. Write it down on the calendar, if it will help, but make sure he understands why you’re doing this and the date he must move out.


I know these things can be difficult, but sometimes you’ve got to take the bull by the horns and make something happen. It’s what’s best for him – and both of you – in the long run.


Last modified on Tuesday, 17 October 2017 10:55
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