There can be some surprising benefits to adding or removing a co-borrower and our Gravity Lending team can help you determine if this will work to your benefit.
Adding a co-borrower
Adding a co-borrower can help open the door to better terms and rates, allowing you to save even more money over the remainder of the loan. For instance, you could add your spouse and combine incomes to qualify for a loan with better terms together. A co-borrower will have equal ownership of the vehicle, so make sure you both understand and agree to terms beforehand.
Once your co-borrower signs the loan papers, they have equal ownership of the vehicle. If they decide they no longer wanted the same ownership of the loan, they can’t just walk away – you must refinance again and remove them from the loan. Therefore, make sure you discuss this matter with your co-borrower before taking any actions.
Removing a co-borrower
Refinancing your auto loan with Gravity Lending can help accomplish removing a co-borrower, which typically benefits both parties. The borrower that remains on the loan will now be in the first position for the new loan, show a paid in full loan on their credit profile, and continue to build credit from the new loan. The person being removed from the loan will experience a decrease in their debt to income ratio and show a loan paid in full on their credit file. Gravity Lending handles the process of perfecting a new title that reflects the removal of the co-borrower, without any risk to you. Keep in mind that the co-borrower needs to agree to this process. Our team can help obtain the necessary permission from the person that you wish to remove.
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