Mortgage Glossary

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Co-Signor

When more than one person is borrowing money, all persons signing the mortgage contract are considered co-signors. The obligation of each person is 'joint and several.' This means that collectively they owe the debt, but also each individual signing owes the whole amount borrowed and the whole amount of each payment.

For example:
Supposing two friends (A & B) buy a house together, 'A' loses his job and has no other income. 'B' continues working as normal.

'A' is unable to make payments as he has no income.

'B' therefore has to pay the whole mortgage payment by himself.

So if the mortgage payment was $900 and each friend previously paid $450 per month, 'B' would find himself paying the whole $900 until 'A' was employed again.

 

 

 

 

 

 

 

 

 

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