Personal finance guru Dave Ramsey has offered numerous pieces of advice on buying a home over the years. One conversation from 2019, a Texas caller asking whether to pay cash for a house, is the clip he keeps reposting across social media to make a simple point that debt-free homeownership is a powerful wealth builder.
Ramsey Asked About Paying Cash For A Home
The caller Jack asked Ramsey, "I'm looking at buying a house cash here in a couple of years and I was just curious, as I've started to talk to other people about it, they've all started to suggest not doing that, taking the money you'd spend on it and throw it at other investments that'll make you more money and I kind of just want to get your thoughts on why you would suggest buying a house cash, or if you wouldn't, what you would put it in?"
Ramsey's answer captured his philosophy. He challenged the premise, asking in jest, "Why would you take financial advice from a bunch of broke people?" and pointed to his firm's National Study of Millionaires at the time, which surveyed 10,167 millionaires.
Millionaire Data, Mortgage Payoff Timelines
The takeaway he highlights is that a paid-off home shows up again and again among the wealthy, with the "average millionaire" retiring their mortgage in about 10.2 years.
That's why Ramsey often touts his "100% down" plan, paying all cash and calling a paid-for house a key milestone on the path to wealth. When cash isn't realistic, he says the only debt he'll bless is a 15-year fixed-rate mortgage with modest payments relative to income.
Cash Is King? Market Context And Caveats
In practice, the landscape is mixed. According to Redfin data, cash buying has been elevated in the high-rate era, with 32.6% of U.S. home purchases in 2024 being all-cash, as buyers sought to avoid steep interest costs. Cash can also strengthen offers and speed closings, notes Redfin. But the share fell from 2023 and cash ties up liquidity.
Mortgage rates themselves have eased from 2024 peaks but remain in the mid-6% ballpark, keeping affordability tight even as refinancing interest ticks up.
Counterpoints to Ramsey's cash-first view persist. Analysts at Nerdwallet warn that paying cash concentrates wealth in an illiquid asset and forgoes potential market returns. Some advisers say strong financed offers can still win bidding wars and preserve emergency funds.
Ramsey's through-line hasn't changed over time, though. He still staunchly believes in crushing debt fast, owning the roof over your head and investing consistently.
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