Thinking Of Co-Signing For A Loan? Read This First

Written by Roy Thomsitt

Continued from page 1

3. Your Legal Responsibility

By placing your signature inrepparttar co-signatory's spot, you will be guaranteeing that if your friend does not makerepparttar 150184 payments, you will. Do you really haverepparttar 150185 spare money each month to coverrepparttar 150186 loan if it came down to that?

4. The Collection Process

If your friend defaults onrepparttar 150187 loan, and it goes intorepparttar 150188 collection process, it is possiblerepparttar 150189 lender will bypass your friend and come after you first. After all, they knew he was a risk, and you arerepparttar 150190 one withrepparttar 150191 better credit record and more likely to haverepparttar 150192 money. The law will vary between countries, but inrepparttar 150193 US this is true in most states, and it would be important to find out where your own state stands on this policy before.

In addition, you should be aware that by co-signing for a loan you may actually reducerepparttar 150194 amount of credit you will be able to get yourself. Your friend's loan will count towards your total debt owed.

5. If You Decide To Go Ahead And Co-Sign For A Loan

If you do finally decide to co-sign for a loan, here are a couple of steps that you should take in order to protect yourself as much as possible:

Firstly, it is wise to request that you will be notified in writing, should your friend miss or be late with a payment. By learning of any problems early on, it will help you keeprepparttar 150195 potential damage to your own credit report from getting out of control.

Next, make sure you also get copies of allrepparttar 150196 loan documents, plusrepparttar 150197 repayment schedules. Ask for a copy of everything that your friend gets, in case there is ever a dispute. Then you will know what legal rights you have.

Being a co-signatory for a loan is a serious responsibility, and is something that you should think long and hard about. Even if it is your best friend who is asking you, think seriously aboutrepparttar 150198 consequences. It is not justrepparttar 150199 potential financial loss to you; your friendship could be onrepparttar 150200 line. Friendship and money often do not go well together, so beware.

Roy Thomsitt is the owner and part author of

Refinance Mortgage Loan Tips On Refinancing Your Home Mortgage

Written by Carrie Reeder

Continued from page 1

2. Make sure that your original mortgage does not have a pre-payment penalty or early payoff penalty of any kind. Sometimes people will get into their mortgage withrepparttar mortgage having a pre-payment penalty and they will not even know about it. Pre-payment penalties usually range from 6 months to 3 years with a penalty for an early payoff. The penalty is usually aboutrepparttar 150183 amount of 6 months worth of your mortgage loan interest, but this varies. You would have to be able to have some significant payment and interest savings on your refinance loan to justify refinancing a mortgage loan with a pre-payment penalty.

3. When evaluating different lender offers, inrepparttar 150184 mortgage loan pre-approval process, pay closest attention torepparttar 150185 interest rates they are offering &repparttar 150186 closing costs. These arerepparttar 150187 two biggest factors that will help you figure out which lender is right for you. If one of these two factors is too high, it could offsetrepparttar 150188 benefit of refinancing for you.

4. Get your interest rate and closing costs in writing as soon as you decide on a lender to work with. Get your lender to give you a commitment in advance of all ofrepparttar 150189 costs that will be involved with your loan. Find out ifrepparttar 150190 refinance loan you are getting has a pre-payment penalty as well. Sometimes lenders will leave out important information like this, if they think it might scare you away from refinancing with them.

To see a list of recommended refinance loan companies online, visit this page: - Carrie Reeder is the owner of ABC Loan Guide, an informational website with articles and more about various types of loans.

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