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Dave Ramsey tells caller to sell home after mortgage consumes half income
The caller said he pays $2,090 per month on a mortgage while bringing home $4,200 monthly, with Ramsey arguing that housing costs leave no room to save.
A caller to the Dave Ramsey Show described a housing budget that left little money for everything else, saying his monthly mortgage payment is $2,090 while his household takes home $4,200.
Ramsey’s response was direct, telling the caller to sell immediately because the mortgage payment equals 50% of take home pay and, in his view, leaves no room for essentials, emergency savings, or retirement saving.
The article notes that selling may be difficult given a 6.67% average mortgage rate and a $434,100 median home price, since moving could still mean high housing costs.
If selling is impractical, the piece says Ramsey’s approach points to alternatives such as raising income, renting out space, or negotiating a loan modification with the borrower’s servicer.