Killer house payment
Question: Sherry is getting a settlement from a car accident for about $35,000. Should they use it to pay down the mortgage or save it and try to sell the house and get something cheaper? Dave's answer is immediate when he hears about how much they make versus how big the house payment is.
Dave Ramsey's advice: This house is not ANYTHING you can afford, you need to get it sold. Your house payment is 70% of your take-home pay. There is no recasting in the world that's going to fix that. Your house payment should be no more than a quarter of your take-home pay on a 15-year fixed rate mortgage. That's very conservative, but that's what you need right now.
If I'm in your shoes, sell this house and rent for a while until you get everything cleaned up. Get stabilized, because right now you're just spinning!
