Can a cosigner get out of a loan after a six month refinance?

my parents have horrible credit and they need me to cosign a mortgage. I am looking to get an apartment of my own. should i cosign for them? they tell me that after six months, they could refinance and take my name out of the loan. i don't know if i believe that. also, i don't want my debt to income ratio to be affected when it comes time to apply for the lease on the apt.

Can a cosigner get out of a loan after a six month refinance?

If you cosign for them this will count againist you when you go to get a loan of your own, and will negatively affect your ratios.

Its true they could refinance (in 6 months, or whenever) and at that time take you off the loan. Still, if they need you on the loan now, what makes you think their situation will be any better in 6 months and they will be able to take out a new loan then without you. What will probably happen is they say things will be better then and give a rosy picture, but when the time comes 6 months down the road their credit will still be lousy and they'll tell how they are so sorry and give all sorts of excuses, but still not be able to get a new loan. Not that they don't want to, they'll just still have lousy credit and not be able to.

So, these are your parents and your certainly owe them alot. Still, this will negatively impact and don't plan on being able to get out of this 6 months down the road (or ever). Based on those considerations you'll have to decide whether to do this for them or not. Best luck.

Can a cosigner get out of a loan after a six month refinance?

Finance is what I do for a living and it takes a lot longer then 6 months to qualify for refinance.

If you co-sign it will take at least 12 to 18 months to establish a good payment history to qualify for refinance. In the mean time your DTI will be effected and your ability to get other loans will also be effected.

I would think twice before I did this if I were you.

Can a cosigner get out of a loan after a six month refinance?

I've been in finance for 23 years and my advice is NOT to co-sign.

You have no guarantee if and when your parents will qualify on their own. And if they continue to pay late, your credit will be adversly affected.

I've seen far too many peole get themselves into trouble trying to help out a loved one.

It's tough love, but don't do it.