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Save Money With Roommates
2 CommentsJust like everyone else during the housing boom last decade, I went ahead and purchased a home that I could not afford. Back then, like everyone else, trying to get a loan approved was easy with no problems at all. As a single guy, my plan was to have a couple roommates to live with me to help offset some of the monthly payments associated with owning a home, namely the mortgage. With the mortgage rate at 6.75%, my mortgage payments was at a skyrocket high of $2,250/mo with my net monthly income barely hovering around $3,000/mo at the time. How I got approved for the loan, I still have no idea. In fact, I still curse at the bank that originally approved me for that loan. However, having two roommates in a 3-bedroom townhome definitely helped me not only offset that huge monthly cost, but also help me save a few bucks a month at the same time!
Fast forward a few years and a mortgage refinancing at 5.5%, I now make enough money to be able to afford this home, without the help of any roommates. Although I still have one roommate currently, I can live comfortably on my own without the help of my roommate’s money. I still allow him to live with me because the money is good. It’s like having a discount on my mortgage payment.
I can do this now since I am still single. I told him that once I get married, he must move out. The money I collect from my roommate does get included into my source of income and does account for in my budgeting. I have been depositing most of my savings every month in a high-yield online savings account such as ING Direct. However, the money I will save through my roommate’s rent can no longer be accounted for when he does in fact move out in the future so I will definitely be missing that. Until then, I will be embracing the money I will be saving every month.
Published on May 20, 2010 · Filed under: Home, Living, Money; Tagged as: budget, Money, mortgage rate, personal finance, roommates
2 Responses to “Save Money With Roommates”
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Annamarie said on May 20th, 2010 at 8:18 am
Good for you! Having a housemate is a great way to save money. Do you have a wedding date in mind? Or are you simply setting his expectations? If the relationship is working, stick to it as long as you can. It’s more money in the bank for you.
I suspect that there are other benefits you may not be aware of. Help around the house? Someone to say hello to in the morning?
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Charles said on May 20th, 2010 at 10:39 am
Annamarie, Thanks for the comment. Yeah, I’m planning on proposing within the next few months. I’m still shopping for a nice engagement ring. The roommate is gonna have to go once we get married, though the money is nice. He probably has to think about finding another place to live within the next 6-8 months.
