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.

RELATED TERMS
  1. Mortgagor

    An individual or company who borrows money to purchase a piece ...
  2. Option Adjustable-Rate Mortgage ...

    A type of mortgage where the mortgagor (borrower) has several ...
  3. Mutual Mortgage Insurance Fund

    A fund that insures mortgages made by the Federal Housing Administration ...
  4. Annual Mortgage Statement

    An annual report sent to a mortgagor by the mortgagee's servicer ...
  5. Participation Mortgage

    A participation mortgage is a type of mortgage that allows the ...
  6. 100% Mortgage

    A mortgage loan in which the borrower receives a loan amount ...
Related Articles
  1. Personal Finance

    Mortgage Company

    A company engaged in the business of originating and/or funding mortgages for residential or commercial property.
  2. Investing

    Financing Basics For First-time Homebuyers

    If you're looking to get your first mortgage, there are many financing options available.
  3. Investing

    Financial Institutions: Stretched Too Thin?

    Find out how to evaluate a firm's loan portfolio to determine its financial health.
  4. Personal Finance

    Finding the Best Mortgage Rates in 2017

    As home-buying technology has progressed, the process of finding the best mortgages rates can all be done online. Here's how:
  5. Retirement

    The Reverse Mortgage: A Retirement Tool

    Discover another way to fund your retirement without having to make payments on a loan.
  6. Personal Finance

    What Is A Mortgage?

    A mortgage is a loan used to purchase a home, where the property serves as the borrower's collateral.
  7. Personal Finance

    6 Tips to Get Approved For a Mortgage

    You can change your bank's answer to a loan request from 'No' to 'Yes'. Find out how.
  8. Personal Finance

    Conventional Mortgage

    A conventional mortgage is any type of homebuyer's load that is not offered or secured by a government entity but rather available through a private lender.
Trading Center