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Two financial legends, two completely different paths to homeownership. Dave Ramsey urges you to save up and buy a house outright — no mortgage, no monthly burden. Warren Buffett, on the other hand, calls the 30-year fixed mortgage “the best instrument in the world.” But who’s actually right?
Ramsey has long championed the “no debt” lifestyle — especially when it comes to buying a home. His Ramsey Solutions blog features a guide titled “3 Simple Steps to Pay Cash for Your Home,” advising buyers to eliminate all debt, build a sizable emergency fund, and save up enough to pay 100% in cash before purchasing a property.
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Ramsey strongly discourages 30-year mortgages. In Mortgage Loan Do’s and Don’ts, he states: “Your home loan should be a conventional, fixed‑rate mortgage with a 15‑year (or less) term. Do not get a 30‑year mortgage!” He notes that a 30-year loan often costs tens of thousands more in interest compared to shorter terms.
When a listener asked if there was ever a case where a 30-year mortgage made more sense than a 15-year, Dave Ramsey didn’t hesitate.
“If you can’t afford a home on a 15-year mortgage,” he said, “it means you can’t afford the house. Period.”
Buffett takes a very different view. During a 2017 CNBC interview, he described the 30-year fixed mortgage as “the best instrument in the world, because if you’re wrong and rates go to 2%… you pay it off.” He called it “a one‑way renegotiation,” explaining that if rates drop, you refinance; if they rise, you’re locked in.
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Buffett didn’t just praise 30-year mortgages — he used one himself. Back in 1971, he bought a vacation home in Laguna Beach for $150,000. Even though he could’ve paid cash, he only put down around $30,000 and financed the rest through Great Western Savings & Loan. Why? Because he believed he could get a better return by investing the remaining $120,000 instead of locking it all into the house.
