Kelly, Ramsey, Rebecca discussed on Dave Ramsey

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Kelly is standing ready willing and able to help you on the phone line if you prefer you can understand on social media at Ramsey show on all the social media platforms Instagram Twitter Facebook all the things at Ramsey show or you can look for me at Chris OGM three sixty out speaking of social I want to take a social media question here this one is from Rebecca who is one of our R. U. two watchers and she says I settled three deaths and I don't want it on my credit report anymore how can I get these off so when I go get a mortgage they won't see it okay so Rebecca you settled the debts now you want those to just leave your credit report so when you get a mortgage they won't see it it didn't work that way and a couple of reasons but one of the words you point out in this that jumped out at me is it says settled which means you offered them a dollar amount less than what you owed and they agreed to it and so therefore settled it which means on your credit report it's going to show settled it also marked with settled under the status however it will reflect a balance so if you owe ten thousand and you settled it for five it will still show a balance of five thousand but it will say settled up unfortunately you can't mandate windows fall off your credit report typically those are going to be on there for seven to ten years so it's not something that can magically lever you can control nor should do I think you should worry about it I think the big thing is is you have the letter that says settled you have a copy of it you have all those things you have a file it so when you get ready to get a mortgage I eat once you pay off debt get a fully funded emergency fund and then you've got about a home down payment then you're going to be ready to talk but it will not just leave so that's what that's a good question but people need to be aware also if you're out there and you say well Chris I don't know what's on my credit report how do I look at it first thing to know is that there are three credit repositories out there so there are three places that that store and in grade or rank credit it's experience trans union and Equifax R. three you were able to get a free copy of your credit report from each one of those each year out so what you would need to do is reach out and write to them if you go to the website you can do it online to get a copy of it but don't look at just one of those and think that it's showing everything there could be something showing up on Equifax that's not showing up on trans union so it's really important to be able to look at those and know exactly what's going on okay we're going to the phone lines because that's what we do if you've got a question I want you to call us the number to call is eight eight eight eight two five five two two five again that's triple eight eight two five five two two five going to lie to I got the honey on the line and Iowa how can I help you Dave hi this is Chris secrets yes ma'am sorry your father hello I am asking because I am twenty eight my husband thirty one baby step three be saving up for houses okay we've been renting going on for us to to years of rents now and I was wondering if it was wise to continue renting could ever conceive of benefit more for down payment on a bigger house okay or if we should just start over a smaller house so that we can better retire all right I like this so you're thinking this through so what's you alls household income you were right around sixty five okay right around sixty five it is it just you and your husband well we have three kids three kids okay what are the ages of the kids five three and two months how might your busy yeah you got three kids run around you're you're busy so what size apartment are you renting right now or home right now we are in life rounded eight hundred correct right okay okay family and the dollars okay read six hundred family five intern square feet so the unusual size home you guys were thinking about was how big I mean we also corporate is right would probably be thirteen okay more or less for a hundred and thirty five thousand okay and you said all around that around that price and if you waited a little longer and said get a little bigger would you say a little bigger Donnie how big are you thinking around here probably something like more like a four bedroom three bathroom house that they gave me four one thirty five going to get like a two bedroom okay one one and a half bath so you think the four bedroom three bath would be about how much are probably closer to one seventy to two hundred around that range okay and you guys are on baby step three B. how much have you saved up for a home down payment thus far right now we have thirty five thirty five thousand yes okay you guys have been intentional and so the I'm just double checking here to honey because sometimes people get amnesia okay so I don't think that I'm questioning what I'm not I'm just going to ask just to double check you guys know any debt or anything do you okay so I like the idea listen I don't think that there's a problem your little ones get riled up or they don't like my voice or something I don't know but but here's the deal I don't think there's a problem at all for you renting it take a little bit longer to be able to save up to buffer and to boost that baby step three B. that's not a problem at all and the mindset especially here's the pressure you feel it you just had another baby two months ago and so now you're for instead of a family of four leaders square feet that your family of five and your start as mom start to think long term so the big question is is how long you're willing to wait and I want to encourage you to honey reach out to one of our real estate deal peace because when you're buying a home you don't want to make a home an emotional decision no no no no don't get me wrong there are positive emotions that come from buying the home yes and the good things that can happen but you don't want an emotional purchase you want to have your business how long you want to make a business decision and what I mean by that is you want to make a decision today but you look back on in two years and say I'm glad I made that decision I called at the hogans to your decision plant I want to think and what it means is as I raise out of my situation necessarily today but I look forward but I think what do I need to do to put myself in trajectory to my dreams and set myself up and so that's what you guys need to do do you want to buy something smaller or wait and buy something a little bit bigger but I want to remind you your mortgage payment should not be more than twenty five percent of your take home pay that's kind of a god because I've seen too many people to Heidi it up how support meaning they buy a lot of house but we can't do anything else another frustrated and irritated so I appreciate your call that's a that's a really want those things really did get at to think about so thank you for that I'm gonna go back to socialize good call Emory on Twitter ask I know you always say only refinance your mortgage to get a better rate should I ever refinance to avoid PMI on an FHA loan okay well Emery actually I don't just say refinance only refinance to get a better rate I will tell people that you can also refinance to get a better term an overall better loan so you're asking should you ever refinance to avoid PMI or if H. on an FHA loan first and foremost what would have to do is talk about what exactly is PMR what is it David mortgage insurance is P. M. Y. it's an insurance that doesn't protect you as a lender at all it didn't do anything for you you know it protects it protects the bank in the mortgage company so if you were to default it protects them now here's the kicker about PMR private mortgage insurance it can add an extra hundred fifty to three hundred fifty dollars a month to your payment so this is a big deal it could add up to be a lot of money so if you can refinance to drop PMR you're obviously saving money and if you've had this mortgage longer than three years and your refinance right now rates are extremely low right now I'm encouraging people reach out to your lender have a conversation find out if you should refinance we all know come November we've got the election coming up that's where people start having emotions and start acting weird right.

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