Sentences with phrase «cosigning involves»
Before you answer, make sure you understand what cosigning involves.
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While this is similar to cosigning on a lease or rental agreement, cosigning for a mortgage loan involves much more money.
If you're considering cosigning a loan, it's essential that you understand the key risk involved: if the borrower defaults on the loan, then you are responsible for paying it back.
Despite the risk involved in cosigning, co-signer signs on the dotted lines for you and hence the best way to repay the co-signer is to honor your commitments and be relieved of the debt as soon as possible.
Since refinancing involves taking out a new loan to pay off the old loan, they would be paying off the loan you cosigned and moving forward with a new loan by themselves.
Of course, there are risks involved when cosigning on each other's debt.