Ramit SethiRamit Sethi: The No-BS Guide to Living a Rich Life

DO NOT TAKE FINANCIAL ADVICE FROM REALTORS! I will reach you to be rich, read my book.

5 Jan 2023 · 1 min

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0:42

Ramit Sethi breaks down why realtor advice on home buying can cost you. A $500,000 house with 10% down means you pay $22,000 in interest and only $6,000 toward principal in year one. Over time, fees and interest can push the total cost to $800,000 to $1,000,000.

Questions this video answers

$500,000

10% down

$22,000

$6,000

Roughly $800,000 to $1,000,000

Chapters

Excited homeowner and you decide, I'm going to buy a $500,000 house, I'm going to put 10% down because some lunatic on TikTok told me I could put 3% down. But whatever, I put 10% down because I heard that's good. Cool. What happens? Well, the first year, you pay $22,000 in interest and only $6,000 towards your principal. And this goes on and on and on and on for many, many years. By the end, your $500,000 house costs you roughly 800,000 to a million dollars when you factor in all of the different fees. Is that a free savings account like realtors tell you?