Owning a home in Southwest Louisiana can be part of your Dave Ramsey Plan!
Financial advisor, Dave Ramsey has become a household word across the country and I am hearing more individuals and couples mention moving forward towards “financial peace” by creating a financial strategy and putting the plan into effect now for their future.
No one likes debt and many of us are moving towards becoming debt free in our lives. However you need to understand that there is good debt and bad debt. Owning a home is good debt. As a home owner, the longer you stay in your current home you are building equity. I recently came across a good article I wanted to share which clarifies some key points in the building of family’s financial strength with home ownership.
Dean Hartman explains the 4 stages of wealth building as a homeowner. I think Dave Ramsey would approve of the strategies Dean outlines for homeowners as he explains ” harnessing the POWER of a mortgage helps you move your family towards wealth.”
Ultimately, Dave Ramsey advises to pay cash for your home. However if that is out of reach for you, Dave recommends:
- you have 10% saved for a down payment (20% is preferable to avoid private mortgage insurance -PMI payments)
- If you aren’t paying cash, get a fixed-rate mortgage for 15 years or less. Keep your payments low—no more than 25% of your take-home pay–try to stay conservative even if you qualify for more.
With the current low mortgage rates, many Lake Charles homeowners are choosing to cash out or re-finance their Lake Charles home. First time home buyers are also taking advantage of low mortgage rates. Work with a loan officer who can educate and explain the power behind properly leveraged real estate via tax savings and reallocation of equity.
Owning a home in Southwest Louisiana is a smart investment in your future and if are financially secure, Dave Ramsey would agree!