Dave Ramsey, a personal finance expert, advocates for minimal debt, especially when it comes to home buying. He suggests that if one needs to take a mortgage, a 15-year term is preferable due to lower interest rates and quicker payoff. However, this advice may not fit everyone's financial situation as many may find 30-year loans provide better cash flow flexibility. Itâs crucial to choose financing that aligns with individual circumstances and needs, emphasizing the importance of seeking personalized financial advice when making significant purchases like a home.
Ramsey suggests that when financing a home, consumers should ideally opt for a 15-year mortgage to avoid excess debt and save on interest.
A 30-year mortgage can still be a viable option for many, providing better cash flow and comfort while making manageable monthly payments.
The decision on how to finance a home should align with personal circumstances; what works for one may not suit another.
SmartAssetâs free tool helps potential homeowners find financial advisors matched to their needs, ensuring informed decisions on significant purchases.
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