Question: Can a co-signer help get a lower rate for your refinance mortgage?

(Posted by: jimmiejaypaul on 2008-10-28 19:03:02)

Posted by: Quicken Loans on 2008-10-29, 13:47:10

Well, it would add some income to the loan, increasing the possibility of getting approved for a higher loan amount. However, most mortgages base the rate off the lowest credit score on the loan. So the lower the credit score, the higher the rate. Hope that helps!!

Posted by: Peggy I on 2008-10-28, 19:06:24

Not usually. A co-signor is normally to ensure that the debt will be repaid.

Posted by: Kevin R on 2008-10-28, 19:12:49

Yes, if you can find one. Buying down your interest rate still happens too. With rates as low as they are, unless you're ARM'ed, you might consider waiting until after the next FOMC meeting. It's soon. Make sure you get a fixed note.

Posted by: godged on 2008-10-28, 22:07:51

If your credit score is crap, maybe. Many lenders are paying much more attention to what is owed and what the appraised value of the property is.

Posted by: John Meussner on 2008-10-28, 22:28:02

A Co-signer can help you if the reason you're getting a higher rate or can't qualify for a certain program is income or asset related. If credit score is the issue, you'll have more trouble due to the fact that lenders will consider the lower of the 2 peoples scores when determining rate. Co-signers are generally used to obtain a loan or certain program, not to augment the conditions of said loan/ program.