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Dave Ramsey has been helping people with their finances for decades. However, the financial landscape has changed considerably since Ramsey got started, and Reddit discussed whether his mortgage rules are still realistic.

The Redditor shares Ramsey's rules while providing some stats that demonstrate how much housing prices have changed over the years.

Ramsey's Mortgage Rule

Ramsey is a fan of 15-year mortgages, and that's consistent with how much he loathes debt. Taking out a 15-year mortgage results in higher monthly payments, but you get out of debt sooner and pay less interest in the long run.

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However, it's not just a decision between 15-year and 30-year mortgages. Ramsey also believes that you shouldn't allocate more than 25% of your take-home pay toward the mortgage. Based on this ruleset, someone who earns $10,000 per month should not pay more than $2,500 per month on a 15-year mortgage. 

The national median income and the median home price paint a pessimistic picture of this ruling. The original poster stated that the national median income is approximately $74,500, while the median house price is $419,000. A $74,500 salary results is $6,208 per month. You would have to find a home where you only have to pay $1,552.08 per month on a 15-year term.

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The Place You Live Plays A Big Role

Housing prices vary greatly based on your state and neighborhood, and those variances resulted in plenty of perspectives on Reddit.

"This is an insane rule," a New Yorker said. This Redditor has a take-home pay of $14,000 per month, but housing prices are so high that it's difficult to find one that matches Ramsey’s criteria.

Another Redditor shared the numbers in their area to demonstrate how difficult the rule is to follow.

"[The] median home price here is $850,000. With 20% down ($170,000), using a 15-year loan, at no more than 15% take home, [the] monthly take home needs to be $39,000."

However, another Redditor said that she and her husband had no problem with following Ramsey's rules when they bought a house in 2023. This couple lives in an LCOL area that is 40 minutes out of town. They made the move for savings and a more quiet life.

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Rent Until You Are Ready To Buy

One Redditor explained that he and his wife rented for 17 years and bought a house when he was 39. This home purchase took place in 2023. Notably, it was an all-cash purchase, so the couple isn't sitting on any debt.

They put 15% of their net income toward rent and invested another 15% of their net income into a taxable brokerage account. A quarter of the couple's funds went into retirement accounts, and the stock market did most of the work.

"If you want a house that’s more than your income can support, you can always choose to get more income, move to a cheaper area, or save for longer," the Redditor explained.

You don't have to rush into your dream house. Some people buy a starter home and upgrade to a larger home once they have children. 

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This article Are Dave Ramsey's Mortgage Rules Realistic In Today's Economy? Reddit Decides. originally appeared on Benzinga.com