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Originally Posted by dealsaver
His advice that your house payment should be 25% of your take home pay combined with his advice to take a 15 year fixed rate mortgage would have made it virtually impossible for a vast multitude of people to ever afford a house.
As far as my attitude towards Dave, a lot of his advice is worth as much as snake oil. I've never liked snake oil salesmen.
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No matter how you slice it, it is still virtually impossible for the vast multitude of people (at least on the overpriced coasts) to *responsibly* afford to buy a house. A fancy ARM, I/O or neg am loan simply means that you are renting from the bank with an option to buy. You aren't earning equity. At best, with appreciation, which IMO is a phantom (buyers set prices, not sellers), you're looking for a greater fool who will buy your house at a premium and assume your debt.
The bone I have to pick with Dave Ramsey's advice is having to sort through the overlay of fundamentalist Christianity to get to some basic financial advice. Spend less than you earn, leave Jesus out of it.