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Will having a cosigner lower my mortgage payment?

by kschelin641 from , Oregon. Apr 11th 2016 Reply


Larry Gray (lgray_312_247)
#566 ranked lender in California - 1,127 contributions

Having a cosigner on your loan will not lower your mortgage payment if that person's mid FICO score is not lower than your mid-score. Beyond that the general purpose of having a co-signer on the loan who is generally a non-occupant of the residence being purchased, is to lower the debt to income ratio and/or increase the qualifying reserve funds on the application.

Apr 11th 2016
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Larry Gray (lgray_312_247)
#566 ranked lender in California - 1,127 contributions

Having a cosigner on your loan will not lower your mortgage payment, but may cause an increase if their mid fico score is lower than yours. I had stated it would not lower your mortgage payment if their mid fico score is not lower than yours, but should have include, "or higher than your mid fico score."

Apr 11th 2016
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Joe Metzler (JoeMetzler)
#1 ranked lender in Minnesota - 3,524 contributions

No... all a co-signer can do is increase your combined income, to maybe allow you to purchase a house more expensive then you could on your own.

Apr 12th 2016
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Lorne Harvey (lorneharvey)
#81 ranked lender in Washington - 418 contributions

Co-Signer will only help qualify for the mortgage, will not help with payment reduction.

Apr 12th 2016
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William J Acres (William_Acres)
#2 ranked lender in Arizona - 7,927 contributions

Loan pricing is based on the LOWEST mid score of ALL borrowers.. so if you are applying with your wife, and you have your parents co sign, and 3 of the 4 borrowers have 800 credit scores but one has a 620, then for loan purposes, the file is priced based on the 620 credit score.. so to answer your question.. typically, no.. co signers do not help lower your payment.. co signers do not help if you have bad credit.. only if you have no credit or limited income.. I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. William J. Acres, Lender411's number ONE lender in Arizona. 480-287-5714 WilliamAcres.com NMLS# 226347

Apr 12th 2016
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