Having a co-signer as a backup is a good idea if you re self-employed
In today s gig economy, I think a lot of people would be not-so-pleasantly surprised to learn it can be hard to leverage freelance income for a home loan.
For instance, what ended up being disqualifying for me was the short length of my self-employment history, even with a few years worth of tax returns on hand. I didn t realize my freelance income wouldn t be leverageable until my first conversation with a lender, which made it pretty nerve-wracking to have to ring up my dad and ask if he d co-sign on the loan.
People collecting unemployment for the first time stumbled twice It s a common problem, Nadine Hawver, a tax preparer in western Massachusetts, assured me (cue nervous laughter here). She went on to explain the root of the issue: Unemployment doesn t meet all of our normal income, so most people are hesitant to have any [money withheld] because they need every penny to meet their obligations.
Phew. This answer had me breathing easier from the get-go; despite my flawed logic, I m not the only one facing this present predicament.
Hawver went on to acknowledge another very simple truth: I think the hardest thing [in 2020] was many people were collecting unemployment for the very first time
Term life insurance does not have cash value, which is why it s more affordable.
There are various types of permanent life that invest the cash value differently.
There are two types of life insurance: permanent life and term life. Permanent life insurance has a death benefit for your beneficiaries and a cash value that you can use during your lifetime, and it never expires. Term life insurance also has a death benefit, but there s no cash value and your policy will expire after a specified amount of time. Related
The difference between term life insurance and permanent life insurance is similar to the difference between renting an apartment and owning a home. When you rent, you have a lease for a certain term. When that lease is over, you can renew but most likely with a rent increase. Likewise, term insurance lasts for a specified period, and when it s up you can reapply for coverage, but the
Courtesy Rebecca Chamaa
I ve never liked paying interest, so when I needed money to buy a car, I wanted to avoid it.
Instead of taking out a bank loan, I borrowed money from my parents. I offered them 4% interest.
It was more than their money was earning at the bank, and saved me about $300 in interest.
I have a love-hate relationship with high-interest payments. I love when I receive them on my savings account, and I hate when I have to pay them on a loan.
My husband and I have been lucky not to have to borrow money too many times in our over 20-year marriage. We borrowed twice for mortgages (not counting refinances) and once for a car. And we didn t take out our car loan from the dealership or even a bank we borrowed from my mom and stepdad.