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Dave Ramsey


Baby Step 6: Pay off your house early


Can you imagine what life would be like if you had absolutely no payments – not even a house payment?!

You’re not too far from making that a reality! You’ve come this far in the Baby Steps; now it’s time to throw all that “extra” money into the largest investment you’ve probably ever made: real estate.

As you attack this last debt, you will gain momentum much like you did back in Baby Step 2 with the Debt Snowball. Remember, having ABSOLUTELY NO PAYMENTS is totally within your reach!

Remember:
  • When selling a home, think like a retailer.
  • When buying a home, think like an investor.
  • Never get more than a 15-year fixed mortgage. 
  • Don't tie up more than 25% of your income in house payments.
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