Should I Co-Sign On A House With My Girlfriend's Mom?

If your private student loans are in default, you're not out of options. Go to yrefi.com/ramsey. Do you guys think college students nowadays have a better chance of being just as or more successful than our parents in today's world? And I asked this because as a college student myself that's about to graduate um with no student debt. Uh I have $50,000 saved and I have a job lined up fortunately. Unfortunately, this side of the state, uh, I live in and away from family. I'm nervous to move out, and I know a lot of people my age and this situation feel the same way. Um, but I know a lot of people are nervous and don't know if they can move out financially. Um, but do you think people in today's world um have the same chance that our parents did? and also people in my situation, what can you give to them um that don't know if they can move out financially? >> Well, you do have the same chance. I don't think you know you get into a crazy game if you start going well what are the chances back in the 60s and you know uh and that probably seems like ancient history to you. Um but no, I I think I think college students have the same exact chances of being successful. I think they have some things that are going in their favor. I think that older generations, you might be able to say, "Well, maybe they had a couple advantages because of this." Um, but the one that sticks out to me, George, is the student loan issue that just was not a handicap to people that are older. >> Yeah. >> Uh, but in your case, Jeremy, you you're the asterric. You don't have any debt. Um, so I think, uh, the the the second question is the one that we can tackle. Um, and that is how do you overcome this barrier to entry? This thought process that uh I can't live on my own or I can't move away. Uh, George, you want to tackle that one first? I've got thoughts, but >> Oh, yeah. So, what what was your what's your job situation right now? >> Um, well, I'm from Dallas, but I have a job offer in a separate state away from family. Um, I would get a stipen to take the position and move out. Um, I'd also get a free vehicle and entry uh salary is 65,000 before >> 65,000 with a car and what's the stipend? >> Uh, 10,000. >> I mean, bro, >> I don't And what what is your actual fear here? Cuz there's not a math problem. Are you wondering, can I afford rent? >> Uh, I I would prefer not to rent but more of a mortgage. Uh >> why would you jump into a mortgage right out of college in a city you have never lived in? >> What's the rush? >> I I I guess it's just because uh my dad he has always told me not to rent. And I guess that stuck with me head. >> So dad said renting is a waste of money, son. You should become a homeowner. >> Yeah. >> And that's the in the back of your mind. Dad is not going to be proud of me if I rent. >> Yeah. and he's going to be telling me how much I need to get into a house every time I talk to him. >> Yeah. >> Is he covering her down payment? >> Uh, no. My uh girlfriend's mom if she would be willing to uh go out with me, but if that's not the case, she would not like to move in. >> Okay, Jeremy, this entire call you have sounded like somebody who's way ahead of the game and on top of it. And then you just threw the ultimate curveball. You're considering buying a house with your girlfriend's mom? >> Yeah. >> Does that sound in any way risky to you? It's true. I'm just trying to be serious. Do you think that sounds smart? >> No, not necessarily. >> Have you told your mom and dad that you're considering this? >> I have. >> And what they say? uh they trust her a lot and they uh really like the family and um if she's willing to do that, they were fine with it. >> Okay, I'm going to bring George in cuz George loves to tell horror stories. George, let's fast forward to the desk. Get my jaw off the floor real quick. >> I got to tell you, Jeremy, this is absolutely ridiculous that your parents haven't freaked out over this. Your parents are good people. >> Are you trolling us, Jeremy? Are you trolling us? No. Is this a fake call? No, I'm not. >> All right, George. Where's this go? Let's Let's say the girlfriend take us down the all the things that could go wrong. >> I'll play this out. You're going to call us in a year and here's going to be the call. >> I sunk all of my money into buying a house with my girlfriend's mom and we just broke up. What do I do? She wants to keep the house. >> Mhm. >> Or I want to keep the house. >> Do you see where this is going? It's going to get messy real quick. You and her you're not even the girlfriend, which we would tell you is stupid. This is the girlfriend's mom, which is next level stupid. >> Already planning to live with your future mother-in-law is just a bad plan relationally. So here, Jeremy, here's what I would do. If I got >> It's not funny. I got to tell you, I don't think anything about this is funny. >> If I waved a magic wand, you would move out, take this job offer, rent, maybe even get a roommate or two to help you stomach the the finances and just learn to live on your own for a little while. rent for a year or two, keep stacking up that down payment with this new salary you have. And then a year or two from now, you have $100,000 saved, and that's actually a decent down payment, uh, you know, on the cost of a home these days. And so once you get into that, do 15year fixed rate mortgage where the payment's no more than a quarter of your take-home pay, that's going to allow you to pay off that home really early. And then you're going to be financially free at a very young age. But if you shortcut it, that scares me because you're gonna fall flat on your face. >> And you are off to a great start. Here's what I don't understand. I thought you said you were moving away from where you live. >> Yeah, I I would be. >> So, where does the girlfriend's mom come into the equation? >> Uh, they live in Tennessee. >> That's where you would be moving. >> Yes. >> Oh, you're moving to be in the same place as your girlfriend? >> Yeah. Yeah. and the job offer is there. Um, so I I kind of thought of it in this way as more of like a a way around things so that I wouldn't have to >> there's not a >> no you think this is a way around something to whatever not pay rent be smarter with your money. This is a way into a massive massive pond of scum and disgustingness and danger and all kinds of stuff. You don't even know if this girl's the one for you, do you? >> You're absolutely right. >> Well, then what are you thinking? We don't even know if we want to marry her. I tell you what, if you were young, you're my younger brother, I'd reach through the phone and cuff you right upside the head because this is crazy talk. You are too smart for this. You've got a great job, no debt, a stipend, a free car. just go date this girl and let's see if she is the one, >> right? And then let's kind of check these boxes off. I mean, this is craziness to me, you know? Like it's And by the way, I'm I'm being fun. James the producer looks like like he's going to swallow a frog. I I wouldn't violently hit you. I'm just saying like I'm trying to go snap out of this. Like this is somebody needs to kind of grab you and shake you and go this could be a horrible horrible mistake. All right, >> here's the TLDDR. Just slow down. You've done such a good job and now all of a sudden you want to go 90 miles an hour and you're going to get in a wreck if you live your life this way. So just rent for a year or two or three. Who you're how old? >> Uh 22. >> Let's play this out. Oh boy. >> At 25, you own a home. You know the average age of a homeowner in today's world? >> No. >> It's like 38 years old. So you're already so far ahead of the curve. You're already so more successful, so much more successful than most Americans who are retired, who are broke. So, if you just keep this up, live your life debtree, rent on your own, get a house when it makes sense, and don't do it with anyone else unless you're married to them. That's the key, man. Good luck. Why refi refinances defaulted private student loans for struggling borrowers. Learn more at y rey.com/ramsey.