Don’t discount the financial advantages of taking on a roommate. By letting out a spare bedroom and applying the rent you collect to your mortgage, you can knock years off the time it’ll take to repay the loan. An extra $250 a month toward a $150,000, 30-year mortgage at 5% will erase the debt 12 years early. An extra $100 a month retires the mortgage six and a half years early.
The benefits to your bottom line extend beyond the mortgage. Rental income can help defray the cost of utilities (gas, electricity, phone, cable, Internet), maintenance and other home-related expenses. GoBankingRates, a personal-finance website, puts the cost of maintaining the average home at $1,204 a month. As a bonus, a roommate can help with chores and provide companionship.
