Dave Ramsey advises keeping mortgage payment below one-fourth of take-home pay to ensure financial stability.

From Yahoo Finance: 2025-04-13 19:03:00

Dave Ramsey, a radio talk show host and founder of Ramsey Solutions, advises on homeownership and avoiding debt. He suggests using cash for purchases and being mindful of affordability. Ramsey’s teachings stem from his personal experience of bankruptcy due to overleveraging traditional methods. He advocates staying out of debt to avoid financial disaster. If borrowing for a home, keep the mortgage payment below one-fourth of your take-home pay, ensuring financial stability and investment opportunities. Ramsey recommends a 15-year mortgage to pay off the house faster and achieve financial freedom. The key is to live within your means, focusing on affordability and financial security.



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