Welcome to Home Mortgages
Mortgage Montana Article
This is a selection made from among articles on Mortgage Montana. For a permanent link to this article, or to bookmark it for future reading, click here.
from:
Co-Signing a Mortgage for Your Child
By Arthur York
When your children get older, it's absolutely normal for them to strive to become independent, and living separately is the first step towards that. And it is also absolutely normal for you as a parent to be willing to help your children as much as possible. So, when your child decides that the time has come for him or her to buy a home of his/her own, should you assist by co-signing the home mortgage? This is a very tricky matter, and it takes a lot of thinking to decide what is best for you both, because co-signing a mortgage for your child can with equal chances turn out to be a very good idea or not so good at all. Everything depends on what you want your role to be.
First of all, let's look into the concept of co-signing in general. Why would a lender require a co-signer at all? The answer is simple: a lender will only require a co-signer, if an applicant for the mortgage does not meet all of the important criteria. A co-signer in this case is a person, who assumes responsibility in the event the borrower defaults on his mortgage obligations, e.g. fails to pay timely.
The first thing you should do before making a decision on co-signing is to carefully study all the terms of the mortgage and the proposed scheme of payments. It's very important to have a clear idea of what you and your child are getting into and what is expected from you both in this regard. Is your son or daughter actually ready for all those house payments? If he/she needs a co-signer, the answer to this question is quite likely to be "no".
If the financial status of your son or daughter is not quite sound, co-signing a mortgage for him/her may be a very bad idea, unless you have enough money to take the blow or just like to risk. It can once come and backfire on you, which is surely not what you want. So in this case the risk is probably not worth it, because you wouldn't like to get into a situation in which the only thing that can happen to you is something bad. If this is the case, the wisest idea would probably be to convince your child to wait until he/she becomes financially sound and the situation becomes less risky for both of you.
If your son or daughter is overly anxious about getting a house, try to explain him/her that it's not a failure if they do not achieve this goal right away - on the contrary, getting a house to quickly may well turn out to be a failure. In order to be ready for all the necessary house payments, your child should be financially backed, and the only way to achieve this is to work and build up a solid credit score. A good credit score means a possibility to make a good down payment and keep the monthly payments on a reasonable and affordable level, which is surely better than buying a house on high interest and oversized monthly payments. The main thing your child needs to realize here is that being too anxious will not pay off. Only patience and common sense will help to achieve the goal.
So, if the financial risk behind co-signing is too large, talk to your child candidly and explain why such responsibility is too much for you to take. However you should also explain him/her how he/she can work to improve the situation and make it acceptable for both of you. If everything is done correctly, in the end your child will not need a co-signer at all, which would be the wisest idea possible.
Arthur York is a home loan expert working for http://www.NorthAmericanLoans.net To get aid in buying a home of your dreams and finding the right loan to save you thousands of dollars each year, please visit us at http://www.northamericanloans.net
Article Source: http://EzineArticles.com/?expert=Arthur_York
http://EzineArticles.com/?Co-Signing-a-Mortgage-for-Your-Child&id=785218
Mortgage Montana Specific links
Blinkx Video Search
- World's largest video search engine. Over 26 million hours of video.
-- http://www.blinkx.com/
Watch Free Videos At Mevio!
- Tons of Free Videos, Only At Mevio.com
-- http://www.mevio.com/
Free Tech and Gadget Reviews!
- Watch GeekBrief With Cali Lewis on Mevio!
-- http://www.geekbrief.mevio.com/
Discover New Music
- Music Fans Discover, Enjoy & Reward The Best New Bands. Join Today.
-- http://www.ourstage.com/
A Mood Booster to Combat The Credit Crunch
- Forget about the credit crunch for a little while and be just mildly entertained for a few minutes...
-- http://www.kontraband.com/
Mortgage Montana News
RY Timber employees back at work - Billings Gazette
HELENA - RY Timber workers at the Townsend and Livingston sawmills returned to work this week following a two-week layoff. Scott Stern, Montana operations manager, said about 190 workers were back on the job. RY cited a national slump in home ...
Read more...Guest Commentary: Douglas Rauthe - Flathead Beacon
Recently, television commentators, pundits and bloggers have started to blame low-income homebuyers for the problems the mortgage and financial markets face today. These same folks are suggesting that the Community Reinvestment Act (CRA) also played ...
Read more...A Montana life poured out in book of poetry - Billings Gazette
A childhood running in Montana fields and spoiled by her father and older brothers "who took me everywhere with them and taught me to dance" couldn't prepare Virginia Mortensen Howell for the despair that would engulf her as an adult. And she surely ...
Read more...Montanans Among Least Delinquent in Mortgages - Flathead Beacon
NEW YORK – The percentage of people who are two months behind on their mortgages shot up in the third quarter from the same period last year, according to credit reporting agency TransUnion LLC. But Montana and neighboring states were among the ...
Read more...Mortgage Delinquencies Up in 3rd Quarter - KFYR-TV
A credit reporting agency says the percentage of people who are two months behind on their mortgages was up in the third quarter from the same period last year. TransUnion LLC says nearly 4 percent of the people holding a mortgage were at least 60 ...
Read more...State scores well in credit card, mortgage payment delinquency - Burlington Free Press
NEW YORK -- Vermont scored well in measures of credit card and mortgage payment delinquency in the third quarter, according to credit reporting agency TransUnion LLC. For the quarter that ended Sept. 30, 3.96 percent of people holding a mortgage were ...
Read more...GAO: Critical Issues not Yet Addressed in TARP - HispanicBusiness.com
The investigative arm of the U.S. Congress on Tuesday criticized the Treasury Department's handling of a $700 billion bank bailout program and urged the Bush administration to get it into better shape. Treasury has yet to address a number critical ...
Read more...UPDATE 3-US GAO: critical issues not yet addressed in TARP - Reuters
WASHINGTON, Dec 2 (Reuters) - The investigative arm of the U.S. Congress on Tuesday criticized the Treasury Department's handling of a $700 billion bank bailout program and urged the Bush administration to get it into better shape. Treasury has yet ...
Read more...US GAO: critical issues not yet addressed in TARP - Guardian Unlimited
WASHINGTON, Dec 2 (Reuters) - The investigative arm of the U.S. Congress on Tuesday criticized the Treasury Department's handling of a $700 billion bank bailout program and urged the Bush administration to get it into better shape. Treasury has yet ...
Read more...TransUnion: 3Q mortgage delinquencies shoot higher - WTOP Radio
NEW YORK (AP) - The percentage of people who are two months behind on their mortgages shot up in the third quarter from the same period last year, according to credit reporting agency TransUnion LLC. For the quarter ended Sept. 30, 3.96 percent of ...
Read more...