# How much does Dave Ramsey say to put down on a house?

Asked by: Devyn Haley  |  Last update: February 9, 2022
Score: 4.4/5 (5 votes)

Save a down payment of at least 10% on a 15-year (or less) fixed-rate mortgage, and limit your monthly payment to 25% or less of your monthly take-home pay. Dave Ramsey recommends one mortgage company. This one!

## How much money should you put down on a \$300 000 home?

If you are purchasing a \$300,000 home, you'd pay 3.5% of \$300,000 or \$10,500 as a down payment when you close on your loan. Your loan amount would then be for the remaining cost of the home, which is \$289,500. Keep in mind this does not include closing costs and any additional fees included in the process.

## How much should you put down on first home?

Realistically, most first-time home buyers have to put down at least 3 percent of the home's purchase price for a conventional loan, or 3.5 percent for an FHA loan.

## How much do I need to make to afford a 450k house?

You need to make \$138,431 a year to afford a 450k mortgage. We base the income you need on a 450k mortgage on a payment that is 24% of your monthly income. In your case, your monthly income should be about \$11,536. The monthly payment on a 450k mortgage is \$2,769.

## How much should you put down on a 450k house?

Assuming the best-case scenario — you have no debt, a good credit score, \$90,000 to put down and you're able to secure a low 3.12% interest rate — your monthly payment for a \$450,000 home would be \$1,903. That means your annual salary would need to be \$70,000 before taxes.

## The Best Way To Buy A House - Dave Ramsey Rant

40 related questions found

### What income do you need for a \$800000 mortgage?

For homes in the \$800,000 range, which is in the medium-high range for most housing markets, DollarTimes's calculator recommends buyers bring in \$119,371 before tax, assuming a 30-year loan with a 3.25% interest rate. The monthly mortgage payment is estimated at \$2,785.

### Is it worth putting 20 down on a house?

The “20 percent down rule” is really a myth. Typically, mortgage lenders want you to put 20 percent down on a home purchase because it lowers their lending risk. It's also a “rule” that most programs charge mortgage insurance if you put less than 20 percent down (though some loans avoid this).

### How much should I put down on a 200k house?

Conventional mortgages, like the traditional 30-year fixed rate mortgage, usually require at least a 5% down payment. If you're buying a home for \$200,000, in this case, you'll need \$10,000 to secure a home loan.

### Is 25000 a good down payment?

You have \$25,000 in savings to make a down payment, covering 10% of the home's value. ... Conventional wisdom might tell you to put down at least 20% of the home's value, and that may be right for those with significant savings or an existing home to sell.

### How much do I need to make to buy a \$300 K house with no down payment?

That's \$9,000 on a \$300,000 home – the lowest possible unless you're eligible for a zero–down–payment VA or USDA loan. The minimum credit score requirement is 620 for a conforming loan. But (and you'll have spotted a theme here) individual lenders can impose higher minimums.

### What credit score is good for buying a house?

It's recommended you have a credit score of 620 or higher when you apply for a conventional loan. If your score is below 620, lenders either won't be able to approve your loan or may be required to offer you a higher interest rate, which can result in higher monthly payments.

### How much do I need to make to buy a 500K house?

The Income Needed To Qualify for A \$500k Mortgage

A good rule of thumb is that the maximum cost of your house should be no more than 2.5 to 3 times your total annual income. This means that if you wanted to purchase a \$500K home or qualify for a \$500K mortgage, your minimum salary should fall between \$165K and \$200K.

### Can I put 5000 down on a house?

FHA loans, backed by the Federal Housing Administration, are available for as little as 3.5 percent down if the borrower has a credit score of at least 580. If the borrower has a lower score (500-579), the minimum down payment is 10 percent.

### How much should you put down on a \$12000 car?

“A typical down payment is usually between 10% and 20% of the total price. On a \$12,000 car loan, that would be between \$1,200 and \$2,400. When it comes to the down payment, the more you put down, the better off you will be in the long run because this reduces the amount you will pay for the car in the end.

### What are the disadvantages of a large down payment?

Disadvantages of a large down payment
• Longer time to enter the market. The months or years spent saving for a large down payment can delay your readiness to buy a house. ...
• Less short-term flexibility. ...
• Interference with investments or retirement saving. ...
• Benefits take a while to add up.

### How much house can I afford making \$70000 a year?

So if you earn \$70,000 a year, you should be able to spend at least \$1,692 a month — and up to \$2,391 a month — in the form of either rent or mortgage payments.

### How can I pay my house off in 10 years?

Expert Tips to Pay Down Your Mortgage in 10 Years or Less
1. Purchase a home you can afford. ...
2. Understand and utilize mortgage points. ...
3. Crunch the numbers. ...
4. Pay down your other debts. ...
5. Pay extra. ...
6. Make biweekly payments. ...
7. Be frugal. ...
8. Hit the principal early.

### What salary do you need to buy a 400k house?

What income is required for a 400k mortgage? To afford a \$400,000 house, borrowers need \$55,600 in cash to put 10 percent down. With a 30-year mortgage, your monthly income should be at least \$8200 and your monthly payments on existing debt should not exceed \$981. (This is an estimated example.)

### Is 20000 enough for a house deposit?

A typical 20% deposit in London is now more than £80,000, according to the Nationwide Building Society. Elsewhere in the UK, the average deposit could be closer to £20,000, the lender said. ... In most regions, it would take about eight years for the typical buyer to save for a deposit.

### How much does the average person put down on a house?

The average down payment in America is equal to about 6% of the borrower's loan value. However, it's possible to buy a home with as little as 3% down depending on your loan type and credit score. You may even be able to buy a home with no money down if you qualify for a USDA loan or a VA loan.

### How much mortgage can I get if I earn 30000 a year?

If you were to use the 28% rule, you could afford a monthly mortgage payment of \$700 a month on a yearly income of \$30,000. Another guideline to follow is your home should cost no more than 2.5 to 3 times your yearly salary, which means if you make \$30,000 a year, your maximum budget should be \$90,000.

### How much house can I afford if I make 60000 a year?

The usual rule of thumb is that you can afford a mortgage two to 2.5 times your annual income. That's a \$120,000 to \$150,000 mortgage at \$60,000.

### How much do you have to make a year to afford a \$300 000 house?

What income is needed for a 300k mortgage? + A \$300k mortgage with a 4.5% interest rate over 30 years and a \$10k down-payment will require an annual income of \$74,581 to qualify for the loan. You can calculate for even more variations in these parameters with our Mortgage Required Income Calculator.