re: Just bought Dave Ramsey's Total Money Makeover

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So on the first house buy something cheap with a 30 year note or buy something I could potentially pay off in 5 to 10 years and own?

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Honestly given today's rates I would buy as much as I could possibly afford and extend the mortgage for the full 30 years. Paying a 4% note (roughly equivalent to slightly over 3% after the tax deduction) will look like a steal over the next 30 years.

If you pay off the mortgage early, all this means is that you got a 3% return on your investment. This isn't terrible but it isn't a great deal either. Stretch it out and use your money on other things that get a better return.

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I have 5 cc but only use 2 of them. I know it was stupid to open so many (thought I was doing good by having a bigger limit) Haven't paid a dime of interest on them.

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That's a fine start. It isn't stupid to have a lot of cards or high limits, in fact it's perfectly fine. What is dumb is:

1) paying an annual fee - close those, stat
2) paying enormous rates. If you are in a "teaser" period with a zero percent rate, fine, keep the balance but make sure you can pay it off at the end.
3) paying 30+ days late.

Paying 10 days late is not going to ding your credit, but it will cost you financially b/c you get hit with a late fee plus outrageous interest. But as long as you pay within the first month you are a valued customer.

30 days late and your credit hits the skids quickly. Yes, prematurely closing accounts, having too much open, etc. can have small effects but that is small change, nowhere near as serious as being a month or more late on a payment.

I guess my issue with that is I don't see the wife and I making a whole lot of money so that we can invest with if we had huge mortgage to pay. We plan on having kids etc.

Also, I'm not confident that I could return a whole lot.

Say I did a 5 to 10 year note. Wouldn't the money I'd save on interest be worth it?