What does "Co-signer" mean?

A co-signer on a mortgage agrees to share the legal responsibility for repaying the loan but does not hold ownership of the property. This arrangement can help borrowers with limited credit history or income qualify for a mortgage by strengthening their application. The co-signer's creditworthiness is often considered in the loan approval process.

A co-signer stays on a mortgage for the duration of the loan term unless they are released from the obligation. This can happen through refinancing or if the primary borrower meets certain criteria set by the lender. The co-signer remains responsible for the debt until officially removed from the loan agreement.

Co-signing a mortgage increases your financial risk. If the primary borrower defaults, you are legally responsible for the debt, which can negatively impact your credit score and debt-to-income ratio. Additionally, your ability to secure future loans may be affected, as lenders consider co-signed debts as part of your financial obligations.

You are responsible as a co-signer for the duration of the loan term, which can range from 15 to 30 years. Your obligation continues until the debt is paid off, refinanced, or the loan is otherwise discharged. Even if the primary borrower makes timely payments, your credit remains affected until the loan is fully settled.