The Ramsey Show - App - The Formula for Refinancing (Hour 3)

Episode Date: October 9, 2019

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Live from the headquarters of Ramsey Solutions, broadcasting from the Dollar Car Rental Studios, it's the Dave Ramsey Show, where debt is dumb, cash is king, and the paid-off home mortgage has taken the place of the BMW as the status symbol of choice. I'm Dave Ramsey, your host. Thank you for joining us. Open phones at 888-825-5225. That's 888-825-5225. Kevin is with us in Missouri. Hey, Kevin, welcome to the Dave Ramsey Show. Hey, Dave, thanks for taking my call. Sure, what's up? Man, I've been listening and following

you for a little while now. I have, I guess, I got divorced, remarried, and I've been beating that up like it's out of style. I've put $50,000 down in about six months. Good for you. I got another three or four months, and I'll be done with about $90,000 of credit cards, cars, stupid. Wow. And then I feel like I hit a wall because I got $175,000 in student loan debt. Wow.

I fell into the stupid loans. Who's the doctor? I am. I'm a therapist. I'm on my doctoral. Between me and my wife, we make really good money. Good. What do you make?

About $110. Okay, good. So how quick can you knock out $175? You've been hauling butt on this other. Well, we were looking at, because she's starting to get stressed and frazzled and wants to slow down some, and she brought up paying the house off first because it's lower in debt no make sure no no okay the student loan the problem with the student loan is is that here's the thing you uh you climb the first 10 000 feet on a 30 000 foot climb and you're

at base camp and you're looking at the top of that mountain going it's still way up there it's emotionally overwhelming and you're tired because you've already climbed one third of the way and and so it's it's normal to look up there and go that is overwhelming that makes me tired because i'm already tired from the climb. But then I look up there and I go, that's a long way. And the problem is if you let that deter you from continuing to attack, it'll always be there. There's only one way to get rid of it, and that's attack it with a vengeance. Okay. Should I rely on, because of the field I'm in, and I i'm in a rural i'm in the middle of nowhere

they have loan forgiveness and it's they pay it up front tax-free 50 grand for two years of service if you can get if you can get that if you can get two years of uh if two years of service if you can get them to do that yeah okay you know the 10-year loan forgiveness is not working. There's been 93 applications out of 24,000 accepted. Well, not only that, you end up paying, even if you look at the student loan forgiveness through the federal stuff, you pay it for 30 years and you end up paying $900,000. Exactly, exactly.

And so that doesn't work. But if you can simply on your underserved area with the Fed program, that's a different program, and they'll knock 50K off. We're definitely doing that. Every two years. Well, I mean, two years, at least the first two years while you're attacking this, which means now we've got 125 to work on. Yep. And just beat it up like it owes me money. Yeah.

Okay. yep and just beat it up like it was my money yeah okay and if you and listen if you need to you're at base camp and you're tired uh before you start the climb again if you need to camp a couple days and rebuild your energy meaning take a little time off for her and let the frazzle go away let's take you take two months off and restart if you need to and rebuild your emotional state and your relational state in your marriage if it's that bad but it's up to you guys to sit down and talk that through

she may go now I'm ready let's go but she may say yeah I need a month off this is driving me crazy and that's okay because you got a long climb and you need to stay fortified for the climb. Keep your tank full. But you're going to get there. The good news is you make good money.

You just had a pile of debt. And I'm really proud of how far you guys have come. It's very substantial and very impressive. Susanna is with us in Georgia. Hi, Susanna. How are you? Hi, Dave. I'm doing well.

Thank you. Thanks for taking the call. So my question is regarding refinance from a 30-year to 15 because of an interest savings. But some background before I get into the numbers is about seven years ago, I lost my then condo. And ever since we have purchased this home last year, I've just wanted to get it paid off. Good. I just have this drive to never go through that process again. Yeah. Once you've been foreclosed on, you don't ever want to be there again. Yeah, so our household income is $186, and we have $185 remaining on the mortgage.

We have a six-month cash savings, but one of us has some job uncertainty because of the company filing for Chapter 13 bankruptcy and some major restructuring going on on a rolling basis, it seems. So we have this cash savings. We have the opportunity to refinance from a 4.875 30-year loan to a 10-year at 3.5% with no origination fees or three percent with some origination fees and i don't know how to calculate that i don't know if it's worth the calculation because we have always paid double and more the minimum how on the 30-year. How many points are they trying to charge you for this half-point APR? One percent. One percent. So one percent loan origination fee, $1,930.

Gotcha. But that's it. They're not charging you. They're only an origination fee or no origination fee, no additional points. I don't see any points on this worksheet other than that. Okay. Well, a point usually equates to about a fourth to an eighth of a percent on APR. This is equating to a half a percent.

So I want you to double check because this is an unusually good deal to pay. So this has about $5,000 in closing costs. Yeah, I know, but I'm talking about the 1% origination fee. You dropped your APR by a half. That's an unusually good deal. This is with a credit union. It's an unusually good deal. It usually equates to a quarter to an eighth of a point.

This is equating to a half a percent APR. That's a lot. Okay. So anyway, if it's true when you check it out, if you didn't miss the fact they were charging you a point in there somewhere. Now, then the next question is, if everything goes well with the jobs, how fast is this home paid off? With the extra we're paying currently, we're set to be debt-free by August 2023. Okay, all right. Well, let me walk through this math with you, and I can't do that in 14 seconds,

so I'm going to put you on hold. We're going to come back after this break and unpack it for you. Hey, hang with me. I'll be right back. This is The Dave Ramsey Show. Are high health care costs getting you down? Are you confused trying to navigate your options? Do you wish you could find an affordable, biblical solution to your health care costs? Based on New Testament principles, Christian Health Care Ministries, or CHM,

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Christian Healthcare Ministries is a proud sponsor of Dave Ramsey Live Events. chministries.org. Thank you for joining us, America. We're glad you're here. Seventy-eight percent of Americans are living paycheck to paycheck, and that means it's completely normal for most Americans to spend all their money as soon as it comes in. If you want to help fix that, we have a process called the Financial Coach Master Training. We will teach you how to do financial coaching and help you launch a successful practice. You'll learn the foundations of coaching and how to navigate a financial crisis with somebody. And you'll be one of the coaches we refer people to across America. You can help people do this stuff.

Our coaching team is giving away a free enrollment into the program during our next webinar on Thursday, October the 10th at noon. That's tomorrow. So register today. Text the word coaching to 33789. That's coaching to 33 789 that's coaching to 33 789 okay we're talking to susanna in georgia she's got 185 000 mortgage you make 180 000 a year and um they've got a quote of three and a half with no points and three with one-point origination to refinance it onto a 15-year fixed. They think they're going to pay it off in about four years anyway.

Ten years. I'm sorry? Ten years. Ten years. I asked you when you were going to pay it off. You said August of 2023. Oh, I'm sorry. The refinance scenario is 10 years.

Oh, it was a 10-year, not a 15-year refinance. Okay, but you're planning to pay it off in four years, and you're currently paying $4.875. Is that all correct now? Yes. Okay. So if you take the point, and I would take the point if you do this, and you had $5,000 closing costs.

Did I hear that right? Yes. Plus the point? Yes. Yes. Yeah, so plus another $1,900. So $5,000 or $7,000, right? Right. Okay.

So $7,000 closing costs at 3% over. So here's the thing. Here's how you do the math. The difference in 4875 and 3 is 1.875% per year savings. On $185,000 is $3,468 a year savings and interest. Okay. How did you calculate that? Well, from 4875 to 3 is a 1.875 savings. Mm-hmm. Okay?

1.875% of $185,000 balance is $3,400 in savings, interest savings. Now, your payment will change more than that, but the interest that you save is all that really happens here. Mm-hmm. save is all that really happens here. So you're saving $3,468 in interest per year, which is 1.875% of your loan balance is what your interest rate is going down. Are you with me now? Yes. Okay.

So if you're saving $3,468 a year and you're paying $7,000 to do that, it takes two years to break even, $3,500 into $7,000, right? Right. Okay. So it's third year before you get gravy on the biscuit. Hmm. And you're only going to be in this deal four years. Mm-hmm. So all this gyration is going to make you two years of the savings,

and the savings by the time we get there is not really going to be $3,468 because you will not be as far in debt anymore. So if you only had $100,000, it's only going to be $1,800 in savings on 1-875-100,000, $1,875,000. Okay? And so all this gyration is probably going to make you $4,000 if you pay it off when you think. Maybe $5,000 if you pay it off when you think. So it's okay to do.

$5,000 is nice. If you send it to me, I'll cash the check. But it's not like this major windfall. And the reason is you're paying off the mortgage so quickly. Right. And I'll give you another guess. Your incomes are unusually high. You guys are apparently rock stars in your industries,

even though the company one of you is working for is in bankruptcy. And I suspect that your incomes are not stable and that I think they're going up. One of them definitely is, all right and so in the next four years the the numbers you ran to pay off the mortgage were based on the income staying the same right so you're gonna pay off the mortgage faster than four years because your income is going to go up and you didn't calculate that in this and you're going to throw all that difference because you've been foreclosed on at the house so i think you're going to be out of debt in three years which means you're're going to throw all that difference because you've been foreclosed on at the house. So I think you're going to be out of debt in three years,

which means you're only going to have one year of gravy on the biscuit, and it's not even a lot of gravy. I wouldn't screw with this. Yeah, it was a lot of trying to calculate different scenarios, and I was just not clear on what I was considering. If you run a 10-year scenario instead of a three- or four-year scenario, then you probably do this. Got it.

Okay. Because the savings. It's hard to stay at the level where we're at because we know we could take vacations and we could do these things that our friends are doing. That's your decision. But this is kind of the driving, yeah. Yeah, it's your decision. And if you let your foot off the gas just a little bit and it takes you five years,

then, you know, we're talking about $5,000, $6,000 again in savings. So I don't care. None of these things are under the stupid column. They're all smart. But if you're going to keep your pedal to the metal and your income is going to go up like you and I are both anticipating and we add that into the equation, all of a sudden August of 2023 is probably not where you really are.

It's not going to be worth it much to do the refinance. But the longer you're going to stay in the debt, the more sense it's going to make to go ahead and refinance. Okay. Okay, great. Thank you so much. It's a good question. It's a fun analysis. Thank you for calling in.

So those of you listening, here's the formula. It's a fairly simple formula. Your current interest rate minus the interest rate you can get due to refinance creates your savings. That change in interest rate, 1.875 in her case, if you're going from five to three, it's a two change, times your loan balance, gives you how much you're going to save a year. Divide that into the closing costs, and that tells you how long it's going to take to break even before there's gravy on the biscuit. It's called a break-even analysis. So in her case, we had $7,000 in closing costs.

We had a $3,500 savings a year. Fairly simple. It takes two years to break even. And if you're going to keep the mortgage longer than two years or much longer than two years then it makes a lot of sense to refinance so if she was going to keep that mortgage 15 years it'd be a no-brainer you'd refinance that for sure you'd refinance that but she's on a on a mission because she's been foreclosed on and uh once you have had debt wring your neck a couple times or even once good you don't want to

go back for seconds and i've been there done that and got the t-shirt some of y'all think i'm a fanatic yeah well it's working for me i am not gonna owe payments to anybody life is too freaking short our question of the day comes from Blinds.com. Find out for yourself why Blinds.com is the number one online retailer of custom window coverings. It's a great company. I love these guys. Just bought some stuff from them the other day. They get free

samples, free shipping, new promos they run every month. You save even more. The promo code's Ramsey. Sheena is in Georgia. What advice do you have a 24 year old female going alone to buy her first car? I've been driving my dad's 94 Camry for years. Now that I'm moving out, I'll need my own. I make $30,000 a year. I was hoping to keep my budget between $3,000 and $6,000. I'm leaving Georgia in 2021. I'm worried about getting ripped off by a manipulative salesman

or getting a bad car that will be costly in maintenance. You are a very wise 24-year-old. I like you. You have the gift of cynicism. It's a wonderful gift. It's called wisdom. So I think just the fact that you realize that this is a distinct possibility means you are probably a force to be reckoned with.

So I suspect you don't walk and talk and act like a victim. And people can smell a victim, including the shysters in any particular business, car business, no exception. So the fact that you walk in there and you act like a little bit, you know what you're doing and you're real suspicious, that's going to bode well for you. You can talk to a local mechanic and ask them what they would charge you to give it a quick look over for you.

Most of the time they'll charge you $20, $50, somewhere in there, $50 to $100 to give you a quick look. Look at the belts and make sure the main parts are working on a $6,000 car. You can do that. Take your dad with you, your pastor with you, an elder in your church with you, something like that. Whoever you've got that will walk with you over there. They may not be any smarter than you are, but you're right to recognize that sexism does exist on a car lot occasionally. And so just the fact that a male is standing there does make a difference. It shouldn't, but it does.

So you're wise to recognize that. This is the Dave Ramsey Show. Tara is with us in Tennessee. Hi, Tara. Welcome to the Dave Ramsey Show. Hi, Dave. How are you? Better than I deserve. What's up?

So I'm living in a condo that I bought two and a half years ago. I have $108,000 left on it. Two of the condos in my same complex sold for $165,000 over the summer. But I'm looking to move to Arizona to go to nursing school. Good for you. And I'm trying to look for some advice on whether or not I should just rent the condo out and pay a company to manage it while I'm away, or if I should just sell it and take that money and kind of sit on it as a nest egg or maybe invest it in another property out there.

You should sell it. Sell it? Yep. Let me tell you how I decided that so quickly, okay? Yes, sir. Let's pretend that you lived with no condo in Arizona and you were in nursing school and you walked into your kitchen and there was $50,000 in cash piled in the middle of your table. Would you take that $50,000 and buy an

investment rental condo in Nashville while you're in nursing school in Arizona? No, sir. Okay. By keeping it, you made the same decision as if you bought it. Would you agree? Yes, sir. Let's sell it. All right. Sounds good. You're going to have plenty of opportunities to make money on real estate. You made money on this real estate,

but you're going to have plenty of opportunities to own investment real estate after you're a nurse and you own the world and you're in control and you're doing great. And do you need, will this money help you get through nursing school, by the way? I was planning on continuing to work as much as I can. I just got an associate's in child development and family relations, and I paid for all that out of pocket, so I was planning on doing the same with this degree as well.

Cool. Very good. And so you've gotten into nursing school in Arizona. Yes, sir. And how much does it cost? For the RN out there, it's going to be about $5,000 because of their community college system. It's just really good and it's really cheap. And then from, I haven't really looked into the bachelors yet, I'll just go with, honestly,

probably the cheapest option from there. Gotcha. Okay. Well, the $50,000, if it's in the mill your table, mathematically, philosophically and romantically for sure, but mathematically also, invested in making Tara into a nurse will make Tara more money later than Tara owning a condo.

Yes, sir. You're more valuable because you're choosing a field that you're going to make good money in, and it's a very usable, applicable field, and you can almost always get a job as a nurse. It's a great field. And so, you know, you're going to be more valuable, and the money you're going to make as a result of that as a return on your $50,000 invested into you is a better mathematical return than that condo will give you,

even though that condo has done really well. But you're just that valuable because you chose well in the field that you're going into. So I would use this money to complete your goals. And those goals then in your career will lead you to the ability to buy things like rental property later. Hey, great question. Thanks for joining us. Proud of you. Be careful out there. Chris is with us in Illinois. Hey, great question. Thanks for joining us. Proud of you. Be careful out there.

Chris is with us in Illinois. Hey, Chris, welcome to the Dave Ramsey Show. Hey, how's it going? It's a pleasure to talk to you, Mr. Ramsey. You too. You too, sir. How can I help? So my question is, my dad, he's been with his girlfriend for a little while now.

And she recently moved in because she has no income. And she was getting income before to pay her own rent because her ex-husband had passed away. The kids were under 18, so that's how she was getting income. Anyway, she moved in with my dad. And now she doesn't have any health insurance or anything. And my dad has asked me if I think it's a good idea for him to marry her for health insurance because she has some health issues right now. And she doesn't have anything for net worth or anything like that.

Well, I wouldn't not marry someone because they didn't have a net worth, but marrying someone because of health insurance, that sounds pretty lame. Like you ought to marry somebody because you're in love and you want to spend the rest of your life with them.

That's what I told him. I asked him the question like that, would you want to spend the rest of your life with her? And he says, well, I don't know, because she's got too much baggage because she's got like a bunch of kids and stuff like that. And they're all staying at my dad's house right now. And he was asking me what I think you should do. Really? How old are you?

I'm 28. Okay. And are you married? I'm not married. I have a girlfriend. All right. So I guess he was kind of wanting you to be okay with having a new stepmom, huh? I don't know, but we both work at the same place, and we both make pretty good money, and our health insurance is pretty good.

Listen, furnishing health insurance to someone is a really dumb reason to marry them. Yeah, that's what I thought. Really, that's a bad decision-making paradigm for choosing a mate. Yeah. I think he feels sorry for her and wants to help her and uh and he's confusing that with a lifetime commitment but see i'm an old school dude i feel like when you marry someone i the only way you get rid of them is death yeah that's exactly what i think i i think if you if you're going to marry someone it's to be with them for the rest of your life

just like you said through rich or poor stuff like that in sickness and in health and for rich or for poor unto thee all my worldly goods I pledge gladly and I don't have to think about it in other words I wouldn't be asking you

I would be announcing it to you that this was occurring yeah I appreciate The fact that he's asking you tells you that he doesn't want to do it And he wants somebody to tell him Otherwise he wouldn't be asking his 28-year-old son for permission to get married Old dogs don't do that much often, that often Cool, thanks for calling, man Melissa's with us in Californiaifornia hi melissa how are

you hi dave doing well thank you i have a quick question related to a car fleece okay so quick fact pattern here we have our three to six months of emergency fund saved we have a household income of two hundred thousand no other debt good so on to the fleece, three-year lease. We have just paid over $11,000 so far. We do have 16 remaining payments totaling $9,000. However, I am over on miles. So right now, the Kelley Blue Book is around $29K to $31.52 for a third-party sale. And my question is, do we just keep making these lease payments

and save up to purchase at the end of the lease, or should we try to purchase now with an independent loan, or how should we proceed with this lease? Hmm. How far over the miles are you going to be at the end? Substantially over. What do you mean, 20,000? Roughly, maybe 25,000, 30,000.

What's the overcharge per mile? Great question. Okay. That tells you what the damage is and what you compare this back against. I take it you like the car, though. Correct. Okay. All right.

Doesn't matter to me. At some point in the next six months, I would just pay the car off and keep it. You make $200,000 a year. You ought to be able to pay $30,000 off in six months. Yes. Oh, wait a minute. That's the value of the car. What's the early buyout on it?

The early buyout right now, current purchase, if I want to buy it right now today, $31,000. Okay. If I wait until the end of the lease. Yep. Well, it'll be down by the end of the lease because you will have made those other nine payments. Sure. Yeah. But the bottom line is, let's just pretend like you had a $31,000 car payment and you made $200,000 a year.

How fast would you pay that off? Six months, right? Actually, it should be less, just given my current situation, living situation. Great. Great. So let's just treat it like it's a $31,000 car debt and just pay it off as fast as you possibly can. Chunk it in the bank until you get the money to write the check and do the early buyout, and then send them a check and get your title.

And that saves you a lot of steps, and now you own the car, and then you decide you don't ever do that car fleece stuff again. It's the most expensive way to operate a vehicle. But you can get out of it within four to six months, it sounds like. And just pile the cash up, write your check. This is The Dave Ramsey Show. Our scripture of the day, Isaiah 41.10 So do not fear, for I am with you. Do not be dismayed, for I am your God.

I will strengthen you and help you. I will uphold you with my righteous right hand. William Shakespeare said, Our doubts are traitors and make us lose the good we oft might win by fearing to attempt. The things we don't try because we're afraid. All of us. All of us. Brent is with us in Ohio.

Hi, Brent. Welcome to the Dave Ramsey Show. Hey, Dave. So at age 40, a wife and two children, the question is, should I go back to school? Why wouldn't you? Well, there's cost, obviously, involved. I don't know exactly what that cost would be. I did recently apply.

In fact, just last week I put in the application for the local community college. It was for supply chain management. I'm currently a truck driver. You want to get a supply chain degree. Yeah, and I'm currently a truck driver and in a land far, far away. A long time ago, I was an insurance salesman with a Series 6 license, but I don't know that any of that will actually help me, and I don't know what my income would reduce to with an associate's degree

from a community college and supply chain. I don't either. What do you make now um 85 okay i don't think it would reduce a ton uh permanently you might have to come in at an entry level below that but you should be back up over 100 once you've proven yourself in the supply chain world most supply chain people make six figures even if they have it doesn't and the degree is not the degree is only um proof that you can do the work if you can do the work you know two years after you're there three years after that you're there you'll make more than you make now. And what's driving this idea of getting you off the road and just a career change into something that you've got more control over the variables, or what?

Yeah, I just want to go home. Yeah, I hear you. It's time to go home. I hear you. I don't blame you. Okay. I like my own bed, too. I travel, and it sure is good to be home. Home is a good place.

Yeah, I definitely would do this. The thing that will give you some comfort is you go ahead and do some research and say, okay, where can I get a job, and who's hiring with associate's degrees for supply chain? I do know I mentioned in an earlier hour today I had run into a young man just come out of college the other day with a supply chain degree from the University of Tennessee, and his first job out of school in his 20s made 83. So it's a sweet degree field. It's doing, I mean, when a kid coming straight out of school can make that kind of money, that's ridiculous. We used to call it logistics back in the day.

But the current vernacular is supply chain. Series 6 doesn't matter, except that that's a real tough test to take. I've taken it and passed it. And it does mean you have a lot of math aptitude, and you'll need math aptitude and a supply chain degree. Okay, so the fact that that was in my history probably won't help me as far as getting a better start. No, but it's an indicator you can do this job.

Okay. Because the job requires heavy math aptitude and a Series 6 passing, passing a Series 6 is, I mean, it's not quite as hard as a CPA, but it's a dadgum tough test. And you've got to be able to crunch numbers and see big math concepts in your head to be able to get through that puppy. And supply chain is no different than that. It's logistical manipulation of numbers and purchasing processes and so forth. And so it's decision-making of numbers and purchasing processes and so forth and so it's decision making trees and good critical thinking skills and you've got all of that or you wouldn't be able to pass that test you can't pass a six if you don't so um i know people have taken it 10 times but um anyway you're going to do fine and yes i definitely would do this

but if you're worried about where you're going to end up because of it go do some research what does a 42 year old guy with an associate's degree that's two years from now look like uh going into supply chain and uh if a kid 22 got a job at 83 000 with a four-year degree um maybe you come in at 65 i don't know i'm guessing i don't know um i've got some supply chain folk on our team and i'm trying to remember which degrees they've got all i know is they do their jobs so um that's really what i'm concerned about so um but and they're worth you know they're worth that kind of money in the marketplace so hey good question man all right up next is going to be steven in pennsylvania hey steven in pennsylvania oh no i'm messing up everything there he goes hey steven how are you i'm doing good how about you better than i deserve what's up man um so i'm questioning

whether or not to uh sell our collector car that we have money on. It's our last debt in Baby Step 2. Okay. What's the car, and what's it worth? It's a 2010 Shelby GT500. Blue book on it. It's a range about 32 to 37,000. Sweet car. Yeah.

Sweet! Did you buy it new? We were second owners. It has has about 6 000 miles on it okay so it's your third car it's a it's a garage baby yeah it's it's a garage car what's your household income uh about 115 gross and how much debt have you got left uh this is the last one it's about 25 000 left on it oh it's on that car yeah yeah okay well so how quick do you pay it off if you keep it oh i mean we so far the past year and a half we paid off about 60 000 um to get to this one. So how quick do you pay it off?

Six or seven months. That's what I'm thinking. Okay. Are you willing to go six or seven months to keep your garage baby? I believe so. It's not causing your house to be foreclosed on. Your children aren't hungry. It's just a matter of are you going to go beans and rice gazelle intensity for six more months to keep this baby in the garage?

Yeah. It's a medium emotional car. You've had it a while. You didn't get it when you were 16. You didn't buy it new. Your dad didn't pass it down to you. So those are heavy emotional cars, right? This one's medium. You've got a cool car, and you've got a second owner, and it's low miles, and it's been sitting in the garage. By the way, you got a cool car and you got a second owner and it's low miles and

it's been sitting in the garage and it by the way it's a cool car but yeah it's my wife's dream car your wife's dream car that's interesting yeah would not have been that would not have been the case at my house so it would have been my dream car but uh you know it's up to you i don't care the bottom line is five years from today that thing's sitting in the garage paid for, and you all are still hitting all your financial goals. Are you glad you've got it and kept it and worked six more months to keep it? I believe so. Okay.

I mean, my fear is getting rid of it and then knowing the value is going to go up on it. Oh, I didn't worry about that. I didn't worry about that at all. You can answer that question by going, do I want the thing sitting in my garage 10 years from now? Okay. I think it'll go up in value, but I wouldn't really call it. I don't know that you're going to see huge returns on that car in investment.

I mean, I got a 1960 Corvette sitting in my garage. It's a restoration frame up. It's a sweetie. And it's gone up in value in five years, almost nothing. Oh, okay. But it's a precious baby to drive. I'll just tell you that. So, yeah.

Yeah, it's an anticue. But, yeah, you know, it's just, you know, it's just what do you want to trade dollars, you know, your energy for? Because that's what you're going to do for the next six months. All your energy is going to be for this. Yeah. I don't care. Nothing here is out of line. But both of you need to be on the same page.

You need to be in agreement, and you need to keep the pedal to the metal and gazelle intense as if this was credit card debt and you were facing bankruptcy, and you get this thing paid off. If you're not willing to do that, you need to get rid of it. But if you're willing to do that and you're willing to give up six months of, you know, continued beans and rice at your house to get her done, it's not out of line with the numbers you're giving me. Nothing here is out of line. So it's just a personal value system call at that point.

Hey, man, thank you for the call. Sorry I couldn't give you a yes or no. I'm going to put this one back on you. That puts us hour in the books. Our thanks to James Childs, our producer. Madison filling in for Kelly this week, our associate producer and phone screener. Great job today, Madison. I am Dave Ramsey, your host.

We'll be back with you. Before you know it, in the meantime, remember, there's ultimately only one way to financial peace, and that's to walk daily with the Prince of Peace, Christ Jesus. Hey, it's Kelly, associate producer and phone screener for The Dave Ramsey Show. This episode is over, but if you heard about a product or service and didn't have a chance to write it down, don't worry. We list everything that is mentioned during this episode in the podcast show notes section.

Thanks for listening.