Latest news with #DaveRamsey
Yahoo
14 hours ago
- Business
- Yahoo
My boyfriend wants to take over half of the $80K mortgage I took on in my divorce — but I don't want to get burned again
Owning a home is a life goal for most people — paying off your home is even more of an achievement. But, what happens if you get a new partner? Should you add them to the deed or not? How could this impact your future? Consider a 50-year-old who now owes $80,000 on a refinanced mortgage. The finish line is close! Now, your boyfriend wants in — not just to live there, but to help you financially by buying half the house. He's offering cash and says he's ready to get married. You love the idea of partnership. You're also hesitant, especially after getting burned in a past marriage. Don't miss Thanks to Jeff Bezos, you can now become a landlord for as little as $100 — and no, you don't have to deal with tenants or fix freezers. Here's how I'm 49 years old and have nothing saved for retirement — what should I do? Don't panic. Here are 5 of the easiest ways you can catch up (and fast) Want an extra $1,300,000 when you retire? Dave Ramsey says this 7-step plan 'works every single time' to kill debt, get rich in America — and that 'anyone' can do it What do you do? Letting him purchase half the house would ease the financial pressure, but are you setting yourself up for legal and emotional headaches down the road? The pros and cons of adding a partner to your deed There's no question that the cash from a life partner can help. If he buys half the home at market value, that could easily pay off your remaining mortgage and leave you with some financial breathing room. You'd still have a home you love with someone you care about. But, it's not without risks. Let's look at the pros and cons to determine if this is a good idea. The pros include: Financial relief. Selling half your home could allow you to eliminate debt, invest or save for retirement. Shared future responsibilities. With two owners, costs like taxes, big repairs and maintenance can be split, making them easier to manage. No need to move. Selling and buying together is an option, but if you love your home and bought it at a good time, it makes sense to stay. But there are financial and legal downsides, too — especially if you aren't yet married. Here are potential cons to keep in mind: Loss of control. You'd no longer be able to make big decisions about the property on your own. If you want to sell, borrow against the property or make significant upgrades, you'll need your partner's agreement. Potential to lose the home if you break up. Once your partner's name is on the deed, they become a full co-owner. If things sour, you may have no choice but to sell if they want out. No protections of marriage. If you're not legally married, you don't have the same property rights or legal safeguards that married couples do. In the event of a breakup or death, there's no automatic right to inherit or buy the other person out. Risk of unequal investment. If one of you pays more towards the mortgage, taxes or repairs, those contributions might not be fairly reflected unless you clearly define ownership shares. In general, adding an unmarried partner to the deed of a home you already own is risky. The chances of things going wrong if you break up — or even if they pass away — can be high. For example, if your partner has children from a previous marriage and passes away, you could end up co-owning a home with their children. If they want to sell, you may not have a choice in the matter unless you can afford to buy them out. However, if you do decide to go forward with this plan, consider a cohabitation agreement to get the details, like who pays for what and what happens if the relationship ends, in writing. Vague promises and handshake deals won't cut it. Here are some questions to answer before moving forward. Read more: Nervous about the stock market in 2025? Find out how you can Is he paying half of the current market value? If he's offering 50% in cash, it should be for the current value of the home, not what you bought it for however long ago. That equity is yours, so make sure the deal is fair to you. Will he be added to the deed and the mortgage? You can technically sell part of your equity without refinancing, but if he wants true co-ownership, adding him to both is cleaner. Just know that refinancing could cost you that great interest rate. Are you planning to get married? If you plan to get married, it's better to wait until after the wedding. That will ensure you have more protections in place. Make sure to research the laws in your state regarding marital assets. What will happen if things go south? Decide now how you'll handle it if things go wrong. Can one of you buy the other out? Will you sell the house? How will the equity that may accrue be divided? Bridging your partner in on your biggest asset is a big decision. In most cases, it's not a good idea unless you're at risk of losing your home. Done thoughtfully, though, it can be a way to build towards a better future together. Above all else, talk to a lawyer. This is not a process you want to manage on your own. And if you do move forward, treat it like a business deal: protect yourself legally and make sure both your hearts and paperwork are in the right place. What to read next Robert Kiyosaki warns of a 'Greater Depression' coming to the US — with millions of Americans going poor. But he says these 2 'easy-money' assets will bring in 'great wealth'. How to get in now Here are 5 simple ways to grow rich with real estate if you don't want to play landlord. And you can even start with as little as $10 Rich, young Americans are ditching the stormy stock market — here are the alternative assets they're banking on instead Here are 5 'must have' items that Americans (almost) always overpay for — and very quickly regret. How many are hurting you? Stay in the know. Join 200,000+ readers and get the best of Moneywise sent straight to your inbox every week for free. This article provides information only and should not be construed as advice. It is provided without warranty of any kind. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Miami Herald
a day ago
- Automotive
- Miami Herald
Dave Ramsey warns Americans about buying a car
During a recent episode of The Ramsey Show, personal finance author and radio host Dave Ramsey tackled a question from a caller about purchasing a new car, offering insights and a cautionary message to listeners weighing the decision. Ramsey frequently challenges the widespread belief in a "perfect" vehicle, urging buyers to let go of the fantasy. He believes a car should meet real-life demands, not an idealized version of them. Don't miss the move: Subscribe to TheStreet's free daily newsletter When it comes to choosing a vehicle, Ramsey has encouraged people to begin with lifestyle questions: whether a car or truck is better suited, how many passengers they usually drive, fuel efficiency needs, and cargo space. He said that these factors help clarify which models are genuinely useful rather than simply desirable. Ramsey warns that no vehicle satisfies every personal preference. Recognizing the difference between necessities and luxuries - and thinking ahead about long-term use - allows buyers to make smarter choices. Ramsey's advice consistently emphasizes budget discipline. He views paying interest as a financial misstep and firmly recommends buying a dependable used car with cash over financing a brand-new model. Doing so preserves financial stability and prevents unnecessary debt. Related: Dave Ramsey sends major message to Americans on IRAs, Roth IRAs He also suggests taking time with the search for a car. Ramsey urges buyers to investigate both online listings and physical dealerships, reminding them that rushing into the first decent-looking deal could mean missing out on something better. Before any of that, though, Ramsey stresses the importance of deciding whether the current vehicle truly needs replacing. Many people make the leap based on impulse rather than practical need, and he suggests that a realistic evaluation of the car's condition should come first. Ramsey also delivers a warning about common car-buying mistakes. While he acknowledges the emotional draw of a shiny new ride, he reminds people that poor financial decisions in this area can have long-lasting consequences - unless they take a deliberate, informed approach that turns the odds in their favor. In an episode of The Ramsey Show, a 24-year-old caller identifying himself as Micah asked Ramsey about buying a car. "I'm currently debt-free," Micah said. "I make $80,000 a year. I am currently maxing out my 401(k) and IRA. I want to buy a car that costs $30,000. However, I don't want to get rid of my current car. It would just be a play car." "It's a sports car," he continued. "I have $30,000 in cash that I'm prepared to pay for this car. I'm not sure if it's better to put this in a different sort of investment portfolio or if it would be OK to splurge and buy this car." Ramsey then ascertained that the caller's current vehicle is worth $13,000 and the car he is interested in buying is a 2019 Nissan 370Z. More on cars: Dave Ramsey has blunt words for Americans buying a carAlphabet's Waymo flexes on Tesla Robotaxi with latest updateTesla faces its most serious court battle in years "Here's the thing," Ramsey said. "I love cars, I drove here today in my Raptor. I love big engines. I like things that make noise. I'm redneck. I want a loud muffler, all that." "But the stupid things go down in value, like a rock," he emphasized. "That's where Chevy got that. 'Like a rock.' And that includes that sweet Nissan you're talking about. And that includes my sweet Raptor." "They go down in value." Related: Jean Chatzky sends strong message on buying vs. leasing a car Ramsey offered a word of advice about building wealth and how it often relates to car ownership. "If you're going to build wealth, you have to keep as small an amount as possible going into things that go down in value," he said. "So consequently, we find millionaires driving very conservative used cars until they've got substantial money." The Ramsey Show host explained that one of the guidelines he suggests people use is to not have more than half their annual income tied up in vehicles. "So adding up all of your little toys with motors and wheels, does it add up to more than half your annual income?" he asked. "Because if it does, you've probably got too much in things going down in value while you're trying to build wealth." Ramsey noted that with those vehicles, Micah would have about $45,000 in two cars. "You make $80,000 and so you're over half," Ramsey said. "So, sweet car. And you've got the cash. You can do it." "I mean, you can afford it obviously, but the warning is that you're putting money in the wrong places if you want to be wealthy." Related: Dave Ramsey has blunt words for Americans buying a car The Arena Media Brands, LLC THESTREET is a registered trademark of TheStreet, Inc.
Yahoo
a day ago
- Business
- Yahoo
The real reason a staggering 40% of U.S. homeowners are mortgage-free
Want more housing market stories from Lance Lambert's ResiClub in your inbox? Subscribe to the ResiClub newsletter. The real reason a staggering 40% of U.S. homeowners are mortgage-free Tsunami warning tracker: Map and online tool let you follow alerts in real time after massive earthquake Figma's IPO date is close. The stock could trade even higher after the design startup's latest move Shop Top Mortgage Rates A quicker path to financial freedom Personalized rates in minutes Your Path to Homeownership Here's a stat that would likely make financial adviser and radio personality Dave Ramsey—who has long advocated for Americans to pay off their mortgages early as a key pillar of his debt-free philosophy—at least somewhat pleased: A staggering 39.8% of U.S. owner-occupied housing units in 2023 were mortgage-free, marking a new high for this data series. That's up from 39.3% in 2022 and 32.8% in 2010. Among the 85.7 million U.S. homeowner occupied households, 34.1 million are mortgage-free. The other 51.6 million have an outstanding mortgage. So why did I say it'd only make Dave Ramsey 'somewhat pleased'? Well, the reason is that a higher percentage of Americans are mortgage-free isn't necessarily because so many are paying off their mortgages faster. Instead, it reflects a powerful underlying demographic shift: the aging composition of the American population. As Americans live longer, the U.S. fertility rate declines, and the massive baby boomer generation ages into their senior years, the U.S. population has skewed older. Since older homeowners are more likely to have paid off their mortgages, the aging composition of the American population means a larger share of homeowners are achieving mortgage-free status each year. The other thing is that when older Americans sell their house and buy another home, they're more likely to rollover their equity and purchase that next home in all-cash. Given that most demographic forecasts expect the composition of the American population to continue shifting upward in age, the share of mortgage-free households could also continue rising in the years to come. The wild card? If reverse mortgages get more popular and more older Americans take on mortgage debt again to tap into their equity. This post originally appeared at to get the Fast Company newsletter:
Miami Herald
2 days ago
- Automotive
- Miami Herald
New Car Buyers Are Getting Trapped in This Scary Financial Situation
New cars are expensive. According to data from Kelley Blue Book and Cox Automotive, car prices are being kept steady, but the average new car in the U.S. still costs a whopping $48,799 in May 2025, a 2.1% increase from the same month in 2024. Despite this, it's easy to get tempted by the idea of a new car. It can be anything: either your current ride is giving you headaches, the new model for 2026 looks really cool, or your local dealer is offering a sweet financing deal on a 2025 model that can be shoehorned into your budget. However, for a disturbing number of Americans, these decisions leave them in a level of debt that would make Dave Ramsey and Caleb Hammer emotional and stuck in a hole that's getting even harder to climb out of. According to new data from car-buying authority Edmunds, the level of negative equity (when people owe more money on a car than its value) in new car purchases has reached a four-year high. They report that 26.6% of cars traded in towards new cars had negative equity in the second quarter of 2025, up from 26.1% in Q1 2025 and 23.9% in Q2 2024. When buyers trade in a car with negative equity, the amount people owe is usually rolled over or paid up front. Edmunds data shows that the average amount that buyers owed on cars with negative equity in Q2 2025 was $6,754, and over a third (32.6%) of underwater buyers carried between $5,000 and $10,000 in debt into their next car loan. Additionally, 23.4% of these buyers owed more than $10,000, and 7.7% owed more than $15,000. "Consumers being underwater on their car loans isn't a new trend, but the stakes are higher than ever in today's financial landscape," Edmunds director of insights Ivan Drury said in a statement. "Affordability pressures, from elevated vehicle prices to higher interest rates, are compounding the negative effects of decisions like trading in too early or rolling debt into a new loan, even if those choices may have felt manageable in years past." The rise of negative equity comes as buying a new car is tougher than ever. Car prices are still high, and interest rates are much higher than those of the COVID years in 2020 and 2021. Despite this, many consumers follow along, trading in their cars early and/or rolling existing debt into their next car without adjusting their budgets. As a result, in the second quarter of 2025, the average buyer who piled their negative equity on top of a new loan financed an additional $12,145 compared to the typical new car buyer. Additionally, they made average monthly payments of $915, compared to the typical new car buyer who paid $756. Figuring out if you have negative equity with your car loan is pretty simple. Start by checking how much your loan payoff amount is, which you can find in your monthly statements. Then, see what your car is worth right now on sites like Edmunds or Kelley Blue Book. If your loan payoff is more than what your car is worth, you have negative equity, and the difference between the two numbers is how much you're underwater. Joseph Yoon, a consumer insights analyst at Edmunds, advises, "In many cases, holding onto your current car and staying current on payments and maintenance may be the wisest choice." That said, if getting a new car feels right, then making the right decision about your shopping is crucial. He also says, "If a new vehicle is the right decision for you, doing your research is key. Choosing the right car for your needs and budget can save you more in the long run than any incentive the dealer or manufacturer may be offering. In today's market, smart shopping is your strongest defense." Copyright 2025 The Arena Group, Inc. All Rights Reserved.
Fast Company
3 days ago
- Business
- Fast Company
The real reason a staggering 40% of U.S. homeowners are mortgage-free
Want more housing market stories from Lance Lambert's ResiClub in your inbox? Subscribe to the ResiClub newsletter. Here's a stat that would likely make financial adviser and radio personality Dave Ramsey—who has long advocated for Americans to pay off their mortgages early as a key pillar of his debt-free philosophy—at least somewhat pleased: A staggering 39.8% of U.S. owner-occupied housing units in 2023 were mortgage-free, marking a new high for this data series. That's up from 39.3% in 2022 and 32.8% in 2010. Among the 85.7 million U.S. homeowner occupied households, 34.1 million are mortgage-free. The other 51.6 million have an outstanding mortgage. So why did I say it'd only make Dave Ramsey 'somewhat pleased'? Well, the reason is that a higher percentage of Americans are mortgage-free isn't necessarily because so many are paying off their mortgages faster. Instead, it reflects a powerful underlying demographic shift: the aging composition of the American population. As Americans live longer, the U.S. fertility rate declines, and the massive baby boomer generation ages into their senior years, the U.S. population has skewed older. Since older homeowners are more likely to have paid off their mortgages, the aging composition of the American population means a larger share of homeowners are achieving mortgage-free status each year. The other thing is that when older Americans sell their house and buy another home, they're more likely to rollover their equity and purchase that next home in all-cash. Given that most demographic forecasts expect the composition of the American population to continue shifting upward in age, the share of mortgage-free households could also continue rising in the years to come. The wild card? If reverse mortgages get more popular and more older Americans take on mortgage debt again to tap into their equity.
