• If you help someone by co-signing on their mortgage, be careful. That mortgage becomes your personal liability. That means, when you try to qualify for your own mortgage, the amount will be less than expected. Even if the other owners are making the payments, it doesn’t matter. Unfortunately, the way the bank sees it is that you are 100% responsible for the payments. For example, let’s say your household income is $150K/yr and you qualified for an $850K home. If you have co-signed for someone else’s $300K mortgage, you could be looking at $550K homes instead.

    So you want to be removed as a co-signer because you can’t afford as much as you want? Not so fast! The only way that you can come off the other mortgage is if those mortgagors can qualify for the mortgage without you. Another alternative is that they find someone to replace you. Short of that, the last extreme option for you to come off? They sell.

    So consider carefully before co-signing!

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