Co-Borrower
  
“Neither a borrower nor a lender be,” Shakespeare opines in Hamlet. This may sometimes hold true for a co-borrower as well. Perhaps you are tired of paying rent and want to buy your first home, but haven’t been able to qualify for a mortgage loan. So, even though you’ve tapped out your parents (who paid for your college tuition, your first car and all your food for the first 18-25 years of your life), you ask them to be your co-borrower on the loan application.
A co-borrower is any additional person whose income and credit score will be considered in order to qualify for any type of loan. Their name will appear on all the loan documents as well as on the deed to the property, and they will be liable for repaying the loan should the other borrower decide to quit paying. Most of the time a co-borrower is a spouse, but it could also be a friend or relative who does not intend to live on the property. If you think you need a co-borrower because your credit score is low, unfortunately lenders use the lower score when making their decision. But another income on the loan application certainly helps, if your debt to income ratio is too low. This ratio is calculated by adding up all your monthly debts and dividing them by your gross monthly income. Debts should not be more than 35% of your income for a mortgage loan.
There is some risk to the co-borrower. Even if the borrower makes all mortgage payments on time, the co-borrower’s credit score could be impacted, making it harder to qualify for a car or other loan because now their debt to income ratio is higher. A good alternative is to refinance the loan as soon as the borrower can qualify on his or her own. With FHA loans, you can refinance in as little as 210 days with a streamline refinance. There will be no credit check and it requires little documentation. So, hopefully the borrower will get that second job soon...
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Karl Marx was a fiercely bearded German economist and philosopher.
seriously look at beard .fierce. with the help of his equally bushy pal Friedrich [Marx pictured]
angles Marx wrote a little book that would have enormous influence on the
Russian revolutionaries of the early 20th century. that book of course was
called Little House on the Prairie. it's just making sure you're with us. it
was actually called the communist manifesto. so let's break it down .the
world according to Marx suffers because of social classes. well in the Western
world we started with feudalism as the class system .if you were a king life was
groovy. if you were a serf and not so much. feudalism crashed and burned and
capitalism rolled in with its booze huazi and proletariat classes. well
according to the Communist Manifesto capitalism was much much much worse than
feudalism. why ?because the booze huazi or owners are the means of production who [communist manifesto pictured]
embraced capitalism would do anything to make a dollar.
this included dehumanizing abusing and manipulating the proletariat or worker
class who toiled on their behalf. so Marx and Engels believed that capitalism
caused enormous suffering and hardship in the modern world. furthermore it
caused corruption because the government was essentially in cahoots with the
bourgeoisie. thanks to the unfairness inherent in capitalism Marxism states
that the proletariat and bourgeoisie will forever be butting heads .more
importantly that tension will eventually result in a revolution of the masses. and
just what would that revolution look like? well Marx and Engels had a few
ideas .there would be no private ownership of land. there would be no
inheritance rights. the state would control the means of communication and
transport .and instead of laboring in factories kids would go to school where
they'd get a free education. the communist manifesto posits that Marxism
would succeed where other forms of socialism had failed because communists
would always put the proletariat first. furthermore other forms of socialism
were nothing more than programs for small reforms .if the ship of the worker [different ships with different forms of government written on sails]
was going to be set right full-blown an all-out revolution was needed.
and that's what Marxism was all about. Marx and Engels like to think that
Germany would be ground zero for the proletariat takeover.
they probably rolled over in their graves when Hitler came to power, but
never fear the Communist Manifesto was a home run for one group. da the Russians.
at the turn of the 20th century there were two divisions of the Russian social
democratic Labour Party .the Bolsheviks and the Mensheviks many of whom had been
kicked out of Russia for being naughty revolutionaries spent about a decade
meeting in pubs in London. over a nice warm pint they'd argue about whose
interpretation of Marxism was correct and what the best method for taking over
Russia was .well frankly we would have picked somewhere tropical for our
communist revolution but well to each his own. while the Mensheviks and [Castro pictured]
Bolsheviks both wanted Russia to ditch capitalism and the Czar their
medium-term goals were quite different. well the Mensheviks wanted to work with
Russian officials already in office to build a kind of democratic system that
would make Russia a better place for everyone. Bolsheviks wanted to burn it
all down. well if you're wondering where Vladimir Lenin is and all this wonder no
more it was at the head of the Bolsheviks. he thought the Mensheviks
were wusses and that Russia's communist government would need to be small and
tightly controlled so that the masses wouldn't rebel. anywho after all those
years of plotting abroad the Mensheviks and Bolsheviks finally saw an
opportunity to get things going in 1917. and viva la revolucion. but that's for [mob of Russians protest]
another video. what, you thought we'd give you all the fun stuff right now?
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