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Parents, close relatives are good choices
What the co-signer should keep in mind
Refinance desirable after a few years
The most important element in co-signing is trust. A co-signer has equal responsibility and should only enter into this agreement if there is a clear contingency plan. Interested in what rate you could get?Click HERE to compare mortgage rates from top lenders in our network. Follow us on
Twitter and Facebook. Recent ArticlesAs Featured On:Does Cosigning affect your credit?Being a co-signer itself does not affect your credit score. Your score may, however, be negatively affected if the main account holder misses payments.
What is the difference between a co borrower and cosigner?Co-borrowers and cosigners are both responsible for repaying a loan, but a co-borrower has shared ownership of the funds or asset, while a cosigner doesn't. Choosing one option over the other comes down to whether you need access to the loan funds, your goals for helping out on the loan and weighing the pros and cons.
What are the disadvantages of cosigning?Possible disadvantages of cosigning a loan. It could limit your borrowing power. Potential creditors decide whether or not to lend you money by looking at your existing debt-to-income ratio. ... . It could lower your credit scores. ... . It could damage your relationship with the borrower.. |