DEFINITION of 'Co-mortgagor'

A party or individual who cosigns a mortgage loan. Co-mortgagors are jointly liable with the other mortgagor for the balance of the mortgage. Often the co-mortgagor will also receive a portion of the ownership in the asset in exchange for assisting with the loan.

BREAKING DOWN 'Co-mortgagor'

It is not necessary to be a co-owner of the mortgaged property in order to be a comortgager. However, prospective co-mortgagors should carefully evaluate the financial stability of the mortgagor before signing on the dotted line. One possible situation where it might make sense to be on the mortgage but not the title of a property is where the co-mortgager is needed to qualify for the loan, but ownership of the property would create estate planning issues.

  1. Mortgage

    A debt instrument, secured by the collateral of specified real ...
  2. Co-Owner

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  3. Mortgagor

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  4. Mortgagee

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  5. Encumbrance

    A claim against a property by a party that is not the owner. ...
  6. Equity

    Equity is the value of an asset less the value of all liabilities ...
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