Is there a way to remove a co-signer from a mortgage without refinancing?

Question by D L: Is there a way to remove a co-signer from a mortgage without refinancing?

Best answer:

Answer by SG Elite
First you need to satisfy the bank that a single signer is capable of repaymet the mortgage otherwise it would be difficult to remove a co-signer without the bank’s approval.

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5 Responses to Is there a way to remove a co-signer from a mortgage without refinancing?

  1. Matt K says:

    You would have to ask the bank to remove this co-signer from the mortgage obligation, and the bank would probably have to amend the note to show this person’s name is no longer on it.
    Otherwise, you can just refinance it without putting that person’s name on it.

  2. goz1111 says:

    the mortgage company is going to have a change of hear now and allow the person to be removed? unless their is a major change in circumstances highly doubt the company will allow the co-signer to be removed, you can ask
    maybe if there is enough equity built up in thehouse the company that you have the note with may allow you to refinance with them thus removing the co-signer

  3. Adoptive Father says:

    In general, you must refinance the loan. Two or more borrowers took out a loan with the promise to repay under certain terms. All borrowers are legally responsible to repay the debt. It is possible the lender might simply release one the borrowers, but it usually does not work this way. The lender will most likely start over from scratch to refinance the loan with only one borrower.

  4. Jerry J says:

    I agree with the other answers that generally the answer is no. If you look at it objectively from the lender’s point of view, it has no motivation to release a borrower from a loan obligation. The more borrowers obligated on the loan, the more potential the lender has for pursuing payment in the event of a default. What would be the upside to a lender to release any one?

    Most likely, you will need to refinance. If you’ve had the loan for quite some time, you might even obtain better rates and there are numerous options for no or low closing cost loans these days.

    Best of luck!

  5. Melanie J says:

    As far as I know, you would need to have some change in circumstances. Usually, a person needs a co signer due to bad credit, less time at a job etc. If there has been a change for the good, like improved credit, good payment history on the mortgage and more time at the same employer, you can call and ask that the so signer be removed. They will probably charge you fees for the paperwork and new credit check.

    Otherwise, if you have improved credit, more time at your job and a good payment history, you can probably pay out about the same in fees and refinance for a lower interest rate.

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