Bremen, KS | School Of Hard Knock - 9/28/2014 14:00If I understand correctly, Ramsey says having debt on an item that is appreciating such as a house in a area that real estate has skyrocketed isn't considered debt, or if that is the only loan you have, you are debt free. I disagree.
No, he only says that he won't yell about a mortgage on a primary dwelling simply because that is an amount that most people don't have on hand. He states that for himself he would not buy any real estate, including his primary dwelling, on borrowed money. His advice on such mortgages is a ten to fifteen year fixed rate loan and then paying it off as fast as possible and to not take out such a loan while there is other debt outstanding. When possible he advises people to refinance based on the previous advice.
He does allow people to celebrate being "debt free" even with a mortgage that they have a plan for paying off in the near future. I understand the reasoning but don't necessarily agree even though personal debt--car payments, credit cards, revolving credit, etc.--shackles the borrower in the extreme.
He strongly advises against borrowing for real estate speculation.
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