Credit Debt Cures

According to Dave Ramsey, is it better to pay off your house first even if you are going to or plan on moving?

Have been doing this Dave Ramsey course and trying to figure out what is the best option. I know he doesn't promote borrowing and when or if we decide to move I just don't want to have to borrow again for another mortgage.... but right now it seems like it really wouldn't make a difference but I want to do it the right way. We owe like 98 grand on the house and it is probably worth around 150 at the most right now. So that leaves about 50 grand and if we move it would be hard to find a house for that w/o having to get another loan. Good suggestions welcome and yes his plan does work!!!

Public Comments

1. You are right, Dave's plan does work! He says either way is fine. But you need to save money in a new category "moving expenses." (movers, truck, boxes, curtains, etc.) If your moving expenses are less than the "moving expense envelop" then put the extra money on the next smallest debt (if debt free then your down payment or your mortgage!). The only loan he doesn't gripe about is borrowing for a home- but get at least 20% down payment and only get the 15 year fixed mortgage. So while you are saving for your moving expenses, you can also pay more on your mortgage and then get more back when you sell. If you don't have a credit score anymore then ask for a manual underwritten loan. Your local small town bank or credit union should be able to do it. (or the place Dave recommends- Churchill mortgage. I just like using local businesses.) If you really, really want to do the 100% down plan- then sell your house, rent a cheap, safe place and then save like crazy! Good luck! And keep living like no one else!
2. Well you can pay off your house in a day unless you have 95k in your bank account. Anyways if you want to pay off your mortgage the easiest way is to pay extra every month what ever you can afford $500 or $1000 ..... But most of the article I have read, tells you not to pay off your mortgage so can get the tax break. May instead of paying off your mortgage you can open 526 plan for your kids education (if you have any?) which will give you more tax break... Good luck
3. Assuming you are otherwise debt free save for the moving expenses etc. Also, make an extra payment or two towards the principal on your current loan. Never, never let anyone tell you that having a mortgage is a good write-off for taxes. If your realtor is telling you that get another one. Do the math; if you are in the 28% bracket and you are paying 10,000 a year in interest you only get to deduct $2800. How is that great?