In an interview, financial expert Dave Ramsey discussed a common financial promise people make but rarely fulfill: taking out a 30-year mortgage with plans to pay it off in 15 years. He argues that while 30-year mortgages are more popular due to lower payments, they complicate the path to early debt elimination. Ramsey advises opting for a 15-year mortgage to reduce interest paid and achieve financial freedom sooner, citing that 97% of borrowers with 30-year loans fail to pay them off early as intended.
"Most people don't make this money move even if they have good intentions, involving taking out a 30-year mortgage and paying it off in 15 years."
"Ramsey recommends that when you purchase a home, you only take out a 15-year mortgage so you become debt-free sooner and pay less interest over time."
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