As your kids grow up, you support them through their bumps and bruises, pay for their braces, school and much, much more.
Over the past few years, I have run into the issue of young adults not being able to qualify for a mortgage without a parent’s help. So, the big question is: should you offer to co-sign on your child’s loan? Your kid may need something more than your money…
Consider the following when making your decision to co-sign on your kid’s mortgage…
Pretend you’re the lender
Ask the same question the lender will: Can your child afford this obligation?
Understand the risks
Creditors will come after you if your child fails to pay the bills. The Credit Bureaus treat loan co-borrowers no differently than primary account holders; if the loan becomes delinquent or defaults, your credit scores reflect the derogatory trade.
A co-signed loan is reported as outstanding debt on your credit, which could limit your ability to borrow if you are planning to apply for credit soon or buy a new home.
St. Louis Mortgage Interest Rates – December 30, 2010
- 30-year fixed-rate 4.875% no points
- 15-year fixed-rate 4.250% no points
- 5/1 adjustable rate 3.625% no points
- FHA/VA 30-year fixed rate 4.875% no points
- Jumbo 5/1 ARM 3.875% no points
- Jumbo 15 year fixed-rate 4.625% no points
- Jumbo 30 year fixed-rate 5.875 % no points
For more information or if you have questions on mortgage rates you may contact me by phone at my direct line, (314) 372-4319, email at email@example.com or you can visit our company website at http://www.paramountmortgage.com.