From the headquarters of Ramsey Solution Broadcasting videos, that's the Dave. Ramsey show home mortgage the blood of the B M w as the status. I'm Dave Ramsey your host. Thank you for joining us, open phones at triple eight eight, two, five, five, two two five at triple eight eight, two, five, five, two two: five, well you've been hearing a lot about debt free degree, an the podcast.

With almost one million downloads, now borrowed future you need to be checking out these things. If you have a list, this podcast, it's eight episodes is absolutely incredible. Anthony O'Neill's, the author of the book, the number best selling book debt, degree and have a question for Anthony about that how to pay for school or about student loans or about just pairing for your future, you can. Al Hinman put student loans are put a Anthony O'Neill in the subject line, email us and we're going put Anthony in touch with you and we're going. Your question answer by Anthony in person email. At Dave on air Dave dot com. Dave on air daveramsey dot com, Kelly are associate producer, will pull the emails based on what you put in the subject line and Anthony get will get your email answer will get your question answered, for you show Jump in Anthony O'Neal

and just email us at Dave on air at daveramsey dot com that comes from blinds dot com one hundred percent- satisfaction guarantee. That means If you miss measure or you pick the wrong color, they will remake your window, blinds for free. You get free samples, free shipping and with promos. They run every month. You save even more the promo code Ramsey to get the best deal Hannah is an Illinois Dave. I went through financial Peace University with my parents. Fifteen years old, I'm not Only two years old I've never had a credit card. I've never been in debt we graduated and got a full time job. I currently live at home to save money, but I commute three hours today. I want to move out to short, my commute and money. For a big down payment. But I can't get a small mortgage since I credit. That's not true!. My parents said they would cosign, but I know you did vies against cosigning. If I were to rent it, would

more than AA mortgage. That's not true. What do you suggest There is nowhere that rent is double the mortgage, that's just not true, and how do we know that, because that were the case, everybody in the town, what about investment properties and rents would have come down. Just it won't, you know, that's just hyperbole, you're just in the by house, now you're but that you have an emergency fund. You have a good down payment for a house. That's fine, but eh for you to establish credit. Is not necessary for you to rent an apartment at a reasonable price or, home from some sweet old lady out a garage apartment out I heard what about back of her house whatever they not require credit. Now does in some places, don't rent to you without credit. I don't have a phico or I'm a multi millionaire.

And that means that some places, if I went down to this apartment complex they wouldn't rent to Maine, because I don't have a phico score, I can write a check the complex, but they won't. To me, that's a dumb, but this is so don't let this you know don't get into a bunch of fatalism, rent, double house payments. That's just yeah, that's not true, and don't get what up in I have to build credit, after cosine. None of these things are true, so you a big enough down payment down, oh by the way twenty two years old you've got time. Go rent, something inexpensive and a bunch more cash you might even just pay cash for your first house, it's very possible with the situation you put yourself in pretty amazing, but you

and qualify for a traditional mortgage without any credit score have to find a mortgage company, like Churchill mortgage that does manual underwriting, which is how we used to do mortgages back when people use their brains where they actually rather the persons alive that the person has a also, that they have a job that they have uh, payment and at paid their rent earlier on time, and that they've, you know, responsible with money and that can all be verified on you, even though you don't have a credit score, so I would recommend that quit all this carrying on and just go find a cheap place to rent. And just use that time there to get out and get closer to work and just pile up much cash as you, pile up Brians Weather some Pennsylvania, hey bro, How are you? How do

about yourself better than I deserve. What's up that would be the answer, but it's still a desk just got a couple of questions for you. I recently got married. My wife and I got married middle of september- congratulates here. Thank much we're currently living in a house that was originally purchased by her parents. They purchases foreclosure I paid one hundred and eighty five thousand? They let her move into it, because, before I met her An agreement was that she would pay them one thousand five hundred dollars per month. Basically one thousand- that ghost order, rent and then five swords, the annual taxes on it, so that's kind, the arrangement that they had and we're still doing that. The house now is valued at two hundred and eighty three hundred thousand based on the come parables in our neighborhood We were wondering if we're currently in baby step, two we were just wondering when would be a

a good point to buy. Obviously, you know you want to get out of debt and save our emergency fund. Thirty six months and before you purchase a home, but a couple more questions pertaining to the home, particular one. What what's the deal with the capital gains on? She spoke to the real estate person previously and they said that her parents may owe capital gains because of the the difference, the value that purchased house for worth the buy it at now. Not event. Dollar capital gains is not based on values based on the price of the sale, the sale price. So they would sell it to you at what price one hundred and eighty five what they paid for it. Yes, they would not have a game, okay so, There's no capital gains on their part, even the houses there's only capital gains if there's a game What gift tax rate like that apply, or is that not relevant at all might apply to that other one hundred thousand the value that they gave up.

It can be argued, and you should probably see a good tax attorney. It can be argued that this is not an arms length transaction and you know that this equity They're just giving you a huge discount and they might have sold the house in a discount anyway, so I doubt that they would have to pay. So we had to make a gift tax on the whole spread. There might be an argument for part of it, then they should get good detailed tax advice, ok, and the only other question I had was in regards to actually purchasing the home

valued between two eighty three hundred with purchase that for a hundred eighty five. Would that be a situation where we would need to save a down payment that difference in value. You know the difference in value than counts, purchase price accounts to mortgage commission required down payment, and I would not close on this property to get America here. I just a turn around for a year and then decide if you really really really want to. You may not really want this property after this after the smoke, settles Lopez dust settles on your getting married. Now this is the Dave Ramsey show if you own a time, share and feel stock time share. Exit team provides a way out. They've been doing this for over seven years, and I've helped over eighteen thousand people exit their time share contracts. They know what it takes to take on the industry. Getting out of a time share can sometimes be a long process, but it's worth it time sure exit team is so confident in their process if they can't get you out in a timely manner. They'll give you your money back, call eight four, four, nine, nine, nine exit or time share exit team, dot, com and schedule. Today

well it's hard to believe, but Christmas is going to be here in twenty minutes, and that means we were in the middle of sometimes the smallest gift, the smallest. Kindness can make a huge impact on your. Is your family, even your community out just. Generosity is about the most fun you can have with money. We all of generous people, they make a smile that make our eyes leak. We love generous people. We call this idea that, when your generous to someone and it cause for them to be generous to someone else that causes them to be generous to someone else. It's kind of like the butter

effect. You know the butterfly flaps its wings and five hundred The hurricane starts right. The effect on the act on the effect on the effect. The generosity effect is what we call this. So we're collecting stories. Messenger's in it. Dave own area dot com from people I've actually received a gift that is is there life or given a gift to change our life? And today, got Phillip on the line. An Illinois hey Phillip welcome to the Dave. Ramsey show Hey thanks for having me on cool. We want to right this generosity effect every week for the coming weeks, every three days for the coming weeks. Up until Christmas. So tell us your story, sir. So last year, around October,

I need a new car. I was looking around for some different cars that I could try to purchas An I thought that reliable meant new. The time, and so I went in to a dealership and we talked with me about getting a new brand new, two thousand and eighteen car that was going to be about four hundred dollars in payments and the time it would have been about. Sixty six and of my annual income and I didn't want to do that. I didn't feel right about it. I was like that's not going to leave me with mouth margin and I just felt it was going to leave me stranded, but I didn't really know what to do. Eh family friend of mine. They, had a recent passing of a family member that, a car in the garage, and it was a two thousand. Eleven chevy, Cruze wow. That. Had nineteen thousand miles on it,

and that Christmas they knew that I was my degrees in youth Ministry and I work with at risk. Kids currently and As a part of that, they said we want. Support those who are in ministry- and we want to support you and we know that you need a car, and so we just want to give you a car this yeah I couldn't believe it I went on Kelley Blue Book. I looked at the value of the car. It was a nine thousand dollars car. They they I told me that they've done this for other people in ministry. Are they fully intend to do this for, like others of just giving to them? I don't know in what capacity, but that January, so that was in December. In January, I began going to financial peace University, a friend of mine, told me that be more generous if I was out of debt wow and

there I would like. I want to do that and so I went to york- an hour, Bank Forward Self Florida and we feel blessed by it. And one of the reasons why I one of my who for getting out of debt is so that later on down the line when I, and family have enough money? we would be able to potential the car or something else or somebody else would need that so cool yeah, yeah, absolutely Kiki, going man It's going! I love it. That's uh! motivation. That's a great way! Congratulations man, that's so cool! I'm now One thousand and four Carmen and a twenty eleven with nineteen thousand miles on it I mean that's truly driven by a little old lady to church. On Sunday I mean you know, wow, that's pretty amazing. Car last. You forever yeah I've I've been blessed in every time. I drive it. It reminds me to

portion pushing forward and to keep reaching for my golden to keep reminding myself that I am a Iama Stewart in a manager of God funds, and it's not my so yeah very cool, Congratulations, you guys very fine. I love it. Good job develop good thanks for sharing that man. We appreciate you, and that is a great reminder of the generosity effect. I suspect. I was going to give away a bunch of cars in his life it was given to him. We've got a post coming up you'll be able to see some writing. I did on that. That's pretty fun! and so be watching for it, the on the generosity effect and also, if you've got a story the generosity effect about what has happened, then all right, email it to us at Dave on air Daveramsey dot com put my generosity story in the subject line Probably knows to pull it aside and will make it of these

generosity updates that were doing we go along here so a very well done. That's so cool! That's a lot of fun!. Have. You ever met somebody that says that someone shows a natural born leader. You know It's just not true right. I've been in the hospital, see people's babies a lot of times. I always say it's a boy. It's a girl, never say it's a leader. So such thing. Leaderships. A series of decisions. Leaders are built. By other people pouring into them by you pouring into yourself. You become a leader and you get to decide if you're going to become one based on your character at rib. Based on your actions, and you can what kind of a leader you're going to be, and if you want take your leadership to the next level, You can join me and a couple of one thousand, other business leaders who have

he their seats for the next entreleadership summit. It's may 17th through the if in Orlando now these always sell out months and months in advance. So So it sounds like major long way away. It is, but it's not take tickets simply will not be there It's quite a line. We've got this year. And John from Shark tank MIKE said, gray, Carly, Fiorina and. Absolutely amazing lady former ceo, Groeschel Pastor, arguably largest church Benjamin Zander, the basement some philharmonic and on his talk of just blow your mind, cat call Chris Christy Right can calming Coleman me this event complete game, changer to learn more about the whole thing,

entree leadership summit may 17th through the 20th you can text, Orlando, two hundred and forty four, two twenty two Orlando forty four thousand two hundred and twenty two are you can check. Under Entree Leadershipdaveramsey dot com easy. We found the information and r I'll get in touch with you and will help you out always call the Ramsey concierge team. They can always lead you through a triple eight hundred and twenty two piece two million two hundred and seventy three thousand two hundred and twenty three. Allison is on Twitter, hey Dave our thoughts on this. He lock strategy to pay your house off early. It's abs, trash, it's a complete scam. When you borrow money and then you off the money. Borrow money. Then you pay off the money in order to use some of the money to pay off another debt. It's a dog sing its tail you're hiding a p, but the p

still there under different shale and it's a complete sweet hogwash off the loan early. So you do Take out a heloc, you do not pay somebody three or four thousand dollars for this damn in order to pay off your debts, do is just there's only one way your debt gets paid off. You have to pay sure on it. Borrowing money on a heloc to pay extra on it, then you pay the Heloc off. Is just adding a step to it. It's a circular bunch of crap for They can't seem to follow the p. And they think it's gone, that it's not under one of those shells that's all it is stay away from that stuff, Allison just

Your baby steps and attack your debts. This is the Dave. Ramsey show Americans about one point: six trillion dollars in student loan debt. One point: six trillion: if you're drowning in student loan debt, there are options. I want you to consider refinancing your high interest student loan to a lower rate, fixed loan from splash financial, a lower rate minimizes the interest, the bills which helps you actually pay down the principal of your loan and help you get out of debt faster. It's like found money and right now the rates on splash financial are the lowest they've been all year see for yourself visit spy.

Which financial dot com, Slash, Ramsey, that's splashfinancial, dot com, Slash Ramsey, thanks for joining us Mereka. This is the Dave. Ramsey show open phones, a triple eight eight, two, five five, two two five Casey is whether cemetery I Casey welcome to the Dave Ramsey Show, hey Dave! How are you better than I deserve? What's up? Well, I need your advice in a bad way. I, I went through a divorce about a year ago. I took everything

uh and let her walk away like all the debt, everything and I cool too just that it was easier that away. It was tough right there at first, I was able to sell out thing I owned and start completely So with that being said, that pay off all the debt, I paid off every I sold the house and was able to take the equity in the house. Pay off the credit cards pay off our pay off the credit cards. I sold the boat home. Toys got rid of everything and, except for my truck, and I still sixteen thousand, my truck, but I finance, it's like a whenever I was struggling through it all. Well, it was refinance it for eight years. So that's something I definitely got to get rid of it, but

other than that. In the meantime, I've slowly started digging myself back in I bought. Property. I was able to put twenty grand down on it. I owe another twenty grand but like one of your golden rules by borrowing: twenty five for my parents to uh Yeah finish paying that land, so it alright lens paid off and then I don't, call anything that anybody, except for my parents, but I've been. One thousand dollars payment for them on that. Um. No! I am working on building a house on that property and I am in the process of getting a construction loan, finalized, and trying to fit at what steps I need to take, but as of right now, I'm pretty well debt free other than one making turn, two thousand dollars. Don't you owe money on the truck.

I well. I do owe money on the truck yet so you're not pretty well debt free, the You're, not pretty well debt free Truck payment apparent payment, an you're building, a house yeah, ok. So what do you make? Uh I make five to seventy thousand a year I bring home Lee three thousand six hundred dollars a month bring home after. Active then 401k one k and all that I have about three thousand six hundred dollars a month to deal with here. Ok Uh, the one thousand dollars, I'm paying my parents. I plan to refinance to the home after it's done after it's built in. I refinance it as a as a mortgage payment, so Ok, so what's your question?

question is: where do I go from here? It's uh That's pretty well fresh start working on building this house. Bang, I'm going to turn you're going to say a fifteen a fifteen year. Note it's probably going to be. My best bet my question there would be if I went thirty just to kind of protect myself and made, payments, like I was doing fifteen, would that What's your what's your thoughts on that? Nobody does it Everybody talks about it, but it's a theory now The seven percent of trauma, loans are not prepaid, systematically plus I'm getting interest. I was lower interest rate at the fifteen. Also so yeah plan on doing a fifteen that you're going to pay earlier than fifteen and get this truck paid off

You know: ok, you're, back to work, your back to work in our baby steps, and you know what they are right well and this is, I am a fairly new listening. Ok, ok the way you're talking about you been doing doing our stuff our address. Okay, my we take the first we take. The first thing to do is to be debt free other than your house, and so you're for, order of business should why you get this construction loan that converts into a fifteen year, 'cause you're, already That deal, I would have done that deal right now, but you're already into it and I would yeah This construction loan converts into into and then what I would do is. I would get yourself out of debt and everything, but the house, let's the truck, build, urgency fund of three to six months of expenses as soon possible, may want to sell the truck answer really, and you know get get rid of and so that you can get in this house with a lot. You know a lot. Smoother situation, you need to be one hundred percent debt free have an emergency fund in place.

Very very soon, with a fifteen year mortgage how to present debt free except the show and then turn around and get it paid off as fast as you can that's a step. You ought to take thanks for the call open phones at eight billion, eight hundred and eighty eight million two hundred and fifty five thousand two hundred and twenty five Whitney is whether it's in Utah high me: how are you good? Thank you thanks for taking my call sure. How can I help. So my husband and I are thirty. Two years old, we started signing peace University. In November of last year, we sold the house and use the profits out of bed currently living in my parents basement for the next one to two years and have completed baby. Three with fifty thousand dollars. Why are you in your parents basement? Have yes, just because my dad? contractor in so we're going to build our next house with him and so we're just

saving money to put down on our next house just to help us save money, So as of right now we have fifty seven thousand dollars to put down on our next house, but we're trying to put down as much as possible, and so we currently have, but we have zero dollars for retirement and we're wondering if we should put that extra money that we were going to put towards a Roth IR. A the down payment or if we just should just start up, are on fire right now, sometimes when people are on baby step 3b, which is when there have their emergency fund inflation, their debt free every, at their house, which is you and. Sometimes they Delaye their retirement. In order to build their down payment bigger. I would

Do that more than three years, but you're not planning to no and I'm how's your house. Feel about living in his father in law's basement uh, He didn't love the idea at first, but we have our like it's pretty much an apartment like we have our own kids, know it's easy and you don't have any trouble with your daddy. He seems sing, happy with it too. It's it's! We anyway, it's been pretty good, my husband. Ok with that, as long as he knows that it's temporary and have a plan could be out within probably eighteen months to twenty four months. Okay, all! Well Sure you play through, because I gotta tell you what you're doing bill can pull that off, but most can't yeah. Well, we've already been here for a year, so

can pull that off, but most can't and so I'm glad you're able to, and I'm glad you got a great relationship, your parents, that's a good thing. I love kids dearly. I'm not sure I could do that. I might kill him if they're in my basement, it's I tell you, I love him dearly, but that's a very difficult- thing to do and it's only a lot harder on your husband's dignity than he's letting on So are you guys need to keep a clear line of communication open in your marriage? If you talk about this is no sin for living in a small apartment for a little while and just continuing to build up your down payment before you build an you know whatever? that cost you in order to have a separated life. Necessary. It's not necessary, I'm ok with you staying there, you do what you want. Do your big grown up people, but do be big grown up people, please this- is the Dave Ramsey Show

our scripture that I Joshua one nine. Have I not commanded you be strong and courageous. Do not be frightened and do not be dismayed for the Lord, your God is with you. Wherever you go, Bethany Hamilton says: courage doesn't mean you don't get afraid. Courage means you, don't let fear stop you well, that's true, get after it hey. We all are you play scared sometimes, but you play you get after it.

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Daveramsey dot com, slash, ELP and click on insurance Ellie in Texas Alien. How are you no sir? I better than I deserve. What's up, it's blue it's hard to get ahold of you, I'm listen quite a bit, but I swear someone being able Well, I'm honored, sir. How can I help yes, sir? So I'm kind of waste into the house. I feel like being a wife paying for how's my boner So it's a virgin islands, Saint Croix, I still quite a bit of money on the channels, but I just got it appraised this week. Quite sure how loans work refinancing or anything like that. But I would still like to get outta here soon. As I can Phillip, rush quite a bit, but I don't know either best Why are you moving to Saint Croix? Ah I'm from I'm from Texas, and I just feel like good, be be nicer,

going to be little rock little big adaption, but here I just feel like there everybody's trying to impress you have a bigger, better car than the next person next big house. I think everyone else and I got it Thank right now, I'm making some pretty decent money, but that's just not what I want it's crazy as it might sound a lot of people out there without jobs. I just like you get out there and do scuba diving, there's a refinery, that's open about refinery as far as work- I'm not exactly for that, but that's the game. Just going to go in the ocean. How old, and I get up, I'm just I'm twenty nine years old yesterday on veteran's day, are you married? Yes, sir? me and my wife don't have any kids, any kids have two dogs and that's about it.

And what would your house sell for? I'm not quite sure it appraised. Yesterday they see me, I don't know what how much element means, but it it was appraised for one Teen thousand, I think somebody is coming to phrase it. Ok, What do you want, a ninety thousand. Ok,. So you moved to Saint Croix with ten thousand dollars in your pocket after expenses, maybe fifteen and no job so by December 30th. I should have thirty thousand cash saved up. Apart from nothing to do with the hell is weather so that helps or not. What are you making here. Oh shoot me and my wife, pulling in roughly ten thousand take home every month. You I'm not quite sure sure cut me Bama about seven thousand, a month's take home. What do you do.

Yeah, also just another overpaid, warm in the whole food Esps Electric, so much more pumps, gotcha. Okay? So yes, she making bank? Yes, sir! Ok! So if you move Thirty thousand dollars, or so plus fifteen or so you get out of the house and you don't get a job. How quick do you run out of money in Saint Croix? Yes, yeah, pretty quickly, so I kind of had an idea that I was husband speaking to the sky out there one of my dad's here, he's awful studio up on hairstyles little good turn on line in January. Pull up on the hill for ninety thousand, I'm not sure What down or anything like that? So those are real, learn going offered. Thirty came. You might be able to drop that down a little bit, come back and

just a little more and then shoot. I guess head head that way: ok, ah sounds like you're running from something until it, instead of two something Are you running to scuba diving, but I mean I'm driver. I have been for thirty years. I love it a lot of fun, but I I don't! I don't hear how you're going to make a living, and so you need 'em, we did have some wisdom with your plan and live in Texas and decide to be content just because other people aren't doesn't mean you can't be, and you make Money may not want to continue to do what you're doing long term. I understand that Can you can visit Saint Croix Alot alot cheaper than you can give your career and move down. There grew up your jobs and move down there, but if you do that you got to have a way to live and what you're doing.

Having to me is something that's going to turn into a nightmare. If you do have a way to live you, sell your house here for sure and have a job lined up where you can feed your family and it's about studio on a hill that sounds like a Jim Crow she song or something I mean you really need to have a plan that actually lays out how you and your wife are going to eat and that's just being responsible adults you're, not children, it's so you can go down there and spend it uh if you want, I don't care if you're going to move there an reset your whole life in the Virgin islands, you have to have a plan to eat uh the Azure little dream is going to wake up one morning. It's going to be a nightmare, and so I don't If you do this, if you want to do it, that's fine, but you need to have a way to make a living, and I have a plan today, feed your wife and you guys take care of each other and you'll have food to eat. You know

while you're enjoying the islands and electricity and water, because you're making and I didn't hear any of this year, disjointed, and you really going to put some meeting but With this a meat and potatoes with your plan here, to where it's actually fleshed out and you've got a whole thing laid out thanks for the call zero. Phones at eight hundred and eighty eight, eight hundred and fifty five thousand two hundred and twenty five is with us in Dc. Jennifer were short on time. Go fast great. Thank you. I am calling 'cause. We have been causing our retirement for eighteen months for to save it for house down payment were indicate situations, so we can say about five thousand a month cool, but we plan on moving and buying a house in twenty twenty. Two three hundred should continue to pause. Spider man till then- I go on longer than three years. It starts to be scary, but if you know that that

at the three year mark right, yes, and I have two hundred and eighty thousand in retirement already. Ok, an ninety five information. Were you going to be moving to we'll the Colorado, and what are you waiting until then to do that? I'm my husband will retire from the military, ok, so he's getting his twenty years in then you guys will take off to the mountains. Yes, sir, this is Golf to a cool place hour, Saint Croix, on one call, I get the Colorado Rockies on another call's, that's pretty cool! Well, You're definitely going to be in better shape than the last color when you get there so yeah, I'm in, Only two you're gonna to go over there with military retirement sounds like hi it's thousands of dollars set aside to be able to live your dream have at it kiddo. I love it appreciate the call

puts this hour in the books, thanks to James Child's our producer Kelly down your search, your producer and front runner, I'm Dave Ramsey your host, we'll be back with you before you know it in the meantime. Remember, there's ultimately only one way to financial peace and that's to walk daily with the prince of Peace Christ. Jesus hey guys this week for senior executive producer of the Dave Ramsey Show regional over fifteen million people. So every people listen to one of over six hundred radio stations across the country to find a station near you at the Dave, Ramsey DOT, slash money, isn't the only thing we talk about around here. Get life. Changing advice on your career from my good friend and career experts can call all my Kim Coleman show. According to a recent Gallup poll, nearly seventy percent of Americans are disengaged at work. If you dread going into work every Monday morning and you're just trying to make it to the weekend, the KEN Coleman Show is for you, everyone has a sweet spot. Your sweet spot is at the intersection of your greatest talents and greatest passion. We will help you discover what it is. You were born to do and then we'll help you create a plan to make your dream job a reality. You matter and you have what it takes join. The conversation on the CAN Coleman show here more from the Ramsey network, including the can call in show where ever you listen to podcasts, hey.

It's James producer of the Dave Ramsey Show. Episode is over but check the episode notes for links to products and services you've heard about during this episode,