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RegExp("[?&]notifications=1(&|#|$)");"desktop"===y&&i&&b.test(window.location.search)&&(i.checked=!0)};ge("ybar-mod-notification",(function(e){var t={isUH3:"crunch"===e.getConfig().ytheme,notifContainer:document.getElementById("notification-container"),notifBadge:document.getElementById("notif-badge"),notifMenu:document.getElementById("ybarNotificationMenu"),notifMenuOpener:document.querySelector("#ybarNotificationMenu + label"),notifDropdown:document.getElementById("notifDropdownContainer"),tooltipContainer:document.querySelector(".".concat($n)),notifLabel:document.querySelector(".".concat(Xn))};t.notifDropdown&&so(e,t)}))}()}};]]>Gabrielle OlyaSun, November 9, 2025 at 5:11 PM GMT+1 2 min readOwning a home is a major financial milestone — but it’s only worth pursuing if it fits within your budget. Money expert Dave Ramsey recommends spending no more than 25% of your take-home pay on your housing expenses, including your mortgage principal, interest, property taxes, home insurance, private mortgage insurance and homeowners association fees.Be Aware: 6 Hidden Costs of Homeownership That Can Wreck Your BudgetRead Next: 6 Things You Must Do When Your Savings Reach $50,000When a mother of eight called into “The Ramsey Show” with her homeownership dilemma, Ramsey gave her some tough love. Here’s why he called her housing payment “stupid.”Katie, a stay-at-home mother of eight who lives in Utah, said that her housing payments were making her “crazy.” Her mortgage payment was $3,900 a month, and her husband — the sole earner — was making $120,000 a year through a combination of working full-time as a physician’s assistant at a clinic, picking up part-time work and donating plasma every week.“Your house payment is 50% of your take-home pay,” Ramsey said. “It already was in the stupid zone as soon as you moved in.”Katie noted that they bought the home to move out of her parents’ basement and so that her husband could be closer to work — but Ramsey doesn’t think they were financially ready for such a big move.“You went from homeless in your mother’s basement to $4,000 a month,” he said. “This is not a small step — this was a great leap.”Find Out: 3 Questions You Must Ask Before Tapping Into Your Home’s EquityRamsey’s recommendation was clear: Sell the house. He emphasized that the family was living in a home they simply couldn’t afford.“The house payment needs to be more like a fourth of your take-home pay — not half,” he said. “Especially when you have eight little birds to feed.”Katie said that she was willing to sell her house and move into a trailer, but Ramsey said that it’s not necessary to go to such extremes.“Why don’t you just go do something reasonable, like [pay] $2,000 a month [for housing] and live out far enough away that you can find that?” Ramsey said. “Let’s get rid of this problem.”Ramsey said it didn’t matter to him whether she found something to rent or buy — the priority should be to find an affordable monthly payment.More From GoBankingRatesHere's How Much You Need To Retire With a $100K Lifestyle 3 Investing Myths That Could Be Costing You Thousands in 2025Two Money Tools Smart People Swear By for Financial Emergencies How to Get Guaranteed Growth On Your Money -- Without Risking Your Principal This article originally appeared on GOBankingRates.com: Dave Ramsey Says This Common Mortgage Mistake Is Financially ‘Stupid’Terms and Privacy PolicyPrivacy & Cookie SettingsMore InfoS&P 5006,728.80 +8.48 (+0.13%)Dow 3046,987.10 +74.80 (+0.16%)Nasdaq23,004.54 -49.46 (-0.21%)Russell 20002,432.82 +14.00 (+0.58%)VIX19.08 -0.42 (-2.15%)Gold4,009.80 +18.80 (+0.47%)PortfolioSign in to access your portfolioSign inTop gainersGMED Globus Medical, Inc. 83.89 +22.18 (+35.94%)FROG JFrog Ltd. 60.00 +12.74 (+26.96%)EOSE Eos Energy Enterprises, Inc. 18.26 +2.97 (+19.42%)OS OneStream, Inc. 22.74 +3.66 (+19.18%)EXPE Expedia Group, Inc. 258.25 +38.55 (+17.55%)Top losersUI Ubiquiti Inc. 612.19 -147.38 (-19.40%)PRMB Primo Brands Corporation 14.46 -3.24 (-18.31%)RUN Sunrun Inc. 17.13 -3.29 (-16.11%)DIOD Diodes Incorporated 44.28 -7.53 (-14.53%)DOCS Doximity, Inc. 54.29 -8.29 (-13.25%)Most activeNVDA NVIDIA Corporation 188.15 +0.07 (+0.04%)OPEN Opendoor Technologies Inc. 6.56 0.00 (0.00%)ACHR Archer Aviation Inc. 8.18 -0.70 (-7.88%)PLUG Plug Power Inc. 2.6500 +0.1400 (+5.58%)PFE Pfizer Inc. 24.43 +0.01 (+0.04%)Earnings eventsMy earnings eventsEarnings eventsTrending tickersBTC-USD Bitcoin USD 103,345.85 +1,512.91 (+1.49%)ETH-USD Ethereum USD 3,513.27 +137.32 (+4.07%)XRP-USD XRP USD 2.31 +0.05 (+2.12%)SOL-USD Solana USD 162.21 +5.37 (+3.42%)PYPL PayPal Holdings, Inc. 66.22 -0.04 (-0.06%)Top economic events