I don’t think Dave Ramsay is good for people now, I think people should save their money not pay off mortgages?
Do you agree or disagree & please tell why. I think years ago that was great & did that with my first house. Now I think people are just helping banks & I am suspicious that Ramsay is getting a nice pay check to work for banks.
I think people should hold onto any cash they can get cause if they had to move & put their life savings in a house they had to abandon they would rather have the money. People need flexibility & mobility. What do you think?
Tags: Dave, dave ramsay payoff house or save, Dont, Good, Money, Mortgages, People, Ramsay, save, Should, Their, think
So you think it is better for you to save your money, put it in the bank and earn 1.2% interest rather than pay down a mortgage where you are paying a 4.5%, 5%, 5.5% or higher rate?
Paying a mortgage is partly a way of saving money; while you lose money paying the interest with your monthly mortgage payment, you are investing the other portion as equity on the property cash value. Even if in time the house its self became absolutely worthless, the land continues to have cash value. If there are no penalties for paying of your mortgage sooner, you pay less in interest for doing so. The cash value of land never goes down, its inflation may stop for a time, but it never goes down. If the bank is holding defaulted property, who does the bank pay. No one of course. They may have to pay land taxes, but the banks are never owing anyone. The more property you can take from the bank, the more power you have financially. Renting your property may be distasteful, but you can do it if you meet the conditions.
I expect that the Dave Ramsay True Believers will not like your independent thinking.
If the mortgage exceeds the house value, it certainly changes the decision to pay down the mortgage. If there is any chance of abandoning, any extra payments are likely a loss.
Your conspiracy theory of Ramsay working for the banks is a bit over the top.
I disagree. If you save your money and do not pay off your mortgage your lender will foreclose on the property and then you’ll just have to start over with a ding on your credit. (You pay off your mortgage a little with each payment, a portion of which goes to interest and a portion of which goes to principal.) You asked the question, and that’s what I’m answering, the question as asked.
I am not a DR fan (by a long shot !!), but I agree with the others that paying on your house is a form of saving money. {Most people sell their house when they move, so cash availability, flexibility, and mobility is not a problem.} Whether or not to pay more than the principal depends on ones budget and goals. I automatically pay an extra $50 a month, and don’t miss the money. That just makes me be a little more frugal with the money I do have.
If you are talking about that select group of people who are “upside down” with their mortgages so are considering abandoning the property, that is a different matter. Those homeowners have to make a tough decision based on their morals and their literal ability to afford to live. Speculators should be forced to eat their loss, because that is what the word “risk” means.
I consider the coherent citizen a very rare commodity. After all; my view is we are fed, fattened, and herded like cattle by corporate interests, advertisers and marketers with their psychological tools to behave as a group. Group think results in higher profit. An ever increasing population results in a larger market to exploit. Independent thought is essential for the individual, yet continually negated via propaganda.
I am aware of numerous people that have ended their mortgage payments, and are moving forward, away from the financial decisions which led to market making in real estate. Capitalist economy is a form of Ponzi scheme; from the financial institutions, to the stock market, to television and FCC media generally.
Keep on thinking free, make your best decision… for you. FTW