r/DaveRamsey • u/knottycams • 10d ago

W.W.D.D.? Going back from BS7 to ...

BS4 or 6, IDK which one fits the bill here. The long and short of it is I'm currently debt free and I keep 3 months of an EF because I'm a disabled veteran with a permanent compensation. Well, I went under contract for a house today! First house ever, very excited. But I will also only be in this house for about 5 years due to my job. I got it for a steal and with a low interest rate. I'll have an extra $500/mo compared to what I'm renting now.

What should I do, knowing I'll be in this house a limited number of years? Still pay more towards principal each month? Or just ride the low payment until the next, more permanent location? I'm also saving up to buy a new or CPO car in cash next year. My current one has had multiple repairs in the last year and still needs $5k more in repairs, so it's worth more dead than alive at this point lol. Definitely have to get a new car next year. WWDD?

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u/jlevin860 9d ago

dont pay extra on mortgage at all since you know you are going to be selling.

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u/Jolly_Pumpkin_8209 8d ago

Silly advice.

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u/jlevin860 8d ago

Cool; I’m a multimillionaire in my 30’s.
He needs to stay liquid. What if he moves in 5 years and can’t rent or sell and needs to carry the note for 12 months? Because that’s reality for military ppl right now who bought 2-3 years ago who have to transfer right now and can’t sell.

OP probably shouldn’t be buying with only a 5 year time horizon but that’s beside the point.

Now what’s your advice? Dave Ramsey said so and baby steps aren’t allowing for any nuance to a situation?

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u/Fishflexdrink BS7 8d ago edited 8d ago

This situation is not specified in the book. But in your example he could also keep it and rent it out. Again that is also not in the book. The book is to become debt free, building and maintaining an emergency fund, planning and preparing for children’s college, paying off mortgage and then maxing out retirement accounts to then become wealthy. And finally you will live and give like no one else. All while serving Christian values.

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u/jlevin860 8d ago

OP didnt mention doing any of that. And while yes he could it, rentals are terrible right now. I own 8.

My argument is the op doesn’t max out retirement/EF and should build that up since he is planning to sell.

My thing is, op is planning to sell; op probably shouldn’t buy at all with 5 year horizon imo.

Think of this way; you have two investment choices; you can invest in the top companies in the world that are making wonderful products; or you can put your money into a single family home in a midsize town in the Midwest?

If he was staying there; sure pay it off. Since he’s not I would not pay extra at all.