Posted on: 08th Apr, 2004 10:14 pm
A co-borrower is a second borrower who signs the promissory note for a mortgage loan along with the primary borrower.
The primary borrower may not alone qualify for the loan. In such a case, the co-borrower's income, assets, credit history, etc are combined with that of the primary borrower. This helps them to qualify for the loan at a reasonable interest rate. The co-borrower's name must also appear on the mortgage or the deed of trust. He is equally obligated to pay off the loan as the primary borrower.
Example:
Daniel wants to take a mortgage loan from Rodger. But his income and credit history does not allow him to qualify for the loan. His friend John then joins him. Rodger considers the financial status and credit profile of both the borrowers before approving the loan. This helps Daniel and John in getting the mortgage at a better rate of interest. Here, Daniel and Rodger are both co-borrowers.
The primary borrower may not alone qualify for the loan. In such a case, the co-borrower's income, assets, credit history, etc are combined with that of the primary borrower. This helps them to qualify for the loan at a reasonable interest rate. The co-borrower's name must also appear on the mortgage or the deed of trust. He is equally obligated to pay off the loan as the primary borrower.
Example:
Daniel wants to take a mortgage loan from Rodger. But his income and credit history does not allow him to qualify for the loan. His friend John then joins him. Rodger considers the financial status and credit profile of both the borrowers before approving the loan. This helps Daniel and John in getting the mortgage at a better rate of interest. Here, Daniel and Rodger are both co-borrowers.
when you have a borrower and a coborrower and you do the credit report how do you get what intrest rate. if the coborrower credit is better than the borrower
Hi grus,
Welcome to MortgageFit Forums.
It is definitely going to help you to get a better interest rate with the lenders if your co-borrower has a better score.
The advantage of having co-borrowers is that it helps to qualify for a loan which was otherwise difficult to qualify.
Here is an example to make things clear on how it helps.
Hope this will help you. Feel free to ask if you have any more doubts.
God bless you.
For MortgageFit,
Samantha
Welcome to MortgageFit Forums.
It is definitely going to help you to get a better interest rate with the lenders if your co-borrower has a better score.
The advantage of having co-borrowers is that it helps to qualify for a loan which was otherwise difficult to qualify.
Here is an example to make things clear on how it helps.
| Monthly Payment | APR | Months in Repayment | Payments | |
| With a co-borrower | $83.32 | 6.65% | 240 | $19,997 |
| Without a co-borrower | $88.32 | 7.28% | 240 | $21,197 |
Hope this will help you. Feel free to ask if you have any more doubts.
God bless you.
For MortgageFit,
Samantha
does the coborrower also own the home
Hi Francis,
Welcome to Mortgagefit forum.
To have ownership rights over the home you should have your name on the title of the home. If you are co-borrower of any type of mortgage loan then your name must have been on the title of the home as otherwise a lender won't agree to have you as a co-borrower.
If you provide some other details about your situation then it will be possible for me to know the problem you are facing and give you some advice.
Colin
Welcome to Mortgagefit forum.
To have ownership rights over the home you should have your name on the title of the home. If you are co-borrower of any type of mortgage loan then your name must have been on the title of the home as otherwise a lender won't agree to have you as a co-borrower.
If you provide some other details about your situation then it will be possible for me to know the problem you are facing and give you some advice.
Colin
Francis, a co-borrower should be on the title to property along with the primary borrower. He has the same obligation to repay the loan as the primary borrower.
We are co-buyers with our son on a loan ( House ), how do we either get our name off or his name off?
Do we have to re-finance or what to do?
URGENT !!!!!This is a new home, only 2 months old? Help
Do we have to re-finance or what to do?
URGENT !!!!!This is a new home, only 2 months old? Help
I would like to add another question to this equation, if I may.
In respects to reporting on our credit reports, does the timely paid mortgage payment show on BOTH borrowers' reports equally?
In respects to reporting on our credit reports, does the timely paid mortgage payment show on BOTH borrowers' reports equally?
Hi,
Yes, the timely paid mortgage payments are also shown on both the borrower's credit report and the payment amount is also shown.
Thanks,
Larry
Yes, the timely paid mortgage payments are also shown on both the borrower's credit report and the payment amount is also shown.
Thanks,
Larry
Thanks Larry!!!
If you haven't already, have you ever thought of writting a book? You need to think about it....
If you haven't already, have you ever thought of writting a book? You need to think about it....
My father purchased his house in the 1950's. In 2004 my father put his
grandson on the mortgage as the co-borrower my father the borrower.
Now grandson is going thru a divorce and his wife wants her share of the
property. They did not aquire this property nor did they purchase this house together. My question? On the sale of proceeds of house, what
percentage is my fathers and what percentgage does he's grandson gets.?
Or do get anything at all. My father's intentions were to put his grandson
on the note because if anything happened to him he would have make a
decision to keep the house or sell the house. Help is needed-Hawaii
grandson on the mortgage as the co-borrower my father the borrower.
Now grandson is going thru a divorce and his wife wants her share of the
property. They did not aquire this property nor did they purchase this house together. My question? On the sale of proceeds of house, what
percentage is my fathers and what percentgage does he's grandson gets.?
Or do get anything at all. My father's intentions were to put his grandson
on the note because if anything happened to him he would have make a
decision to keep the house or sell the house. Help is needed-Hawaii
Hello Joann,
Is your father's grandson on the deed too?
A co-borrower is legally liable for the mortgage when the borrower defaults but if he is not on the title, he does not have right to the property.
Is your father's grandson on the deed too?
A co-borrower is legally liable for the mortgage when the borrower defaults but if he is not on the title, he does not have right to the property.
They did not aquire this property nor did they purchase this house together. My question? On the sale of proceeds of house, what
percentage is my fathers and what percentgage does he's grandson gets.?
Any additional borrower(s) whose name(s) appear on loan documents and whose income and credit history are used to qualify for the loan. Under this arrangement, all parties involved have an obligation to repay the loan. For mortgages, the names of applicable co-borrowers also appear on the property's title. Since the granddad and grandson are family they can work out the percentage of ownership.
percentage is my fathers and what percentgage does he's grandson gets.?
Any additional borrower(s) whose name(s) appear on loan documents and whose income and credit history are used to qualify for the loan. Under this arrangement, all parties involved have an obligation to repay the loan. For mortgages, the names of applicable co-borrowers also appear on the property's title. Since the granddad and grandson are family they can work out the percentage of ownership.
I'm a co borrower and I've been the only 1 making monthly payments. I would like 2 give up ownership 2 the borrower. What can I do
Welcome drea.
If you wish to give up ownership rights on property, you'll have to sign on a grant deed and convey your interest in property to the primary borrower. But you will have your name on the loan too. But do you wish to remain on the loan? If no, then the lender would probably ask the primary borrower to refinance the loan in his name.
Thanks
If you wish to give up ownership rights on property, you'll have to sign on a grant deed and convey your interest in property to the primary borrower. But you will have your name on the loan too. But do you wish to remain on the loan? If no, then the lender would probably ask the primary borrower to refinance the loan in his name.
Thanks