Dave Ramsey’s rigid rule that a mortgage payment shouldn’t exceed 25% of take-home pay is unrealistic for today’s buyers due to high home prices and interest rates. Key Mortgage VP of Residential Mortgage Lending Jason Finn argues this strict formula can block financially stable people from owning a home, suggesting buyers instead focus on their unique financial goals and lifestyle.

As Finn notes: “My biggest concern with this rule is its reliance on absolutes.”

Read the full article here: https://www.moneylion.com/trending/money/im-a-real-estate-expert-why-dave-ramseys-25-percent-mortgage-rule-no-longer-works