Refinancing is a way to create a new mortgage loan and lower your interest rate and house payment. If you fear that a lender will deny your refinancing application, you can add a co-borrower to the new mortgage. This can include anyone but typically would include a family member such as a spouse, parent or sibling.

How do I remove a co borrower from my mortgage?

Returning to the original question, usually the only way to remove a co-signer from a mortgage is to refinance the loan. When you refinance the mortgage, you can remove the co-signer and you are the sole borrower on the new loan or potentially a co-borrower with someone else.

What happens when you co sign on a mortgage?

Co-signing on a loan isn’t just a character reference. It’s a legally binding contract that makes another person partially responsible for your debt. This means that when you become a nonoccupant co-client on a mortgage loan, the lender can come after you for payments if the primary signer defaults.

What should I do if I become a co-client on a mortgage?

Here are the steps you should take if you agree to become a nonoccupant co-client on a mortgage loan: Ask the primary occupant to give you online access to their mortgage statements. Ask the lender to send you a notification immediately when the primary occupant misses a payment.

Can a non-client co sign on a mortgage loan?

But the decision to co-sign on a loan or add a co-signer to your loan isn’t one you should make without knowing all the facts. Today, we’re looking at what it means to be a nonoccupant co-client on a mortgage loan.

Who is the mortgage editor for Bankrate.com?

Suzanne De Vita is the mortgage editor for Bankrate, focusing on mortgage and real estate topics for homebuyers, homeowners, investors and renters. At Bankrate we strive to help you make smarter financial decisions. While we adhere to strict , this post may contain references to products from our partners. Here’s an explanation for