Adding or Removing Co-Borrowers
Sometimes, it may be beneficial for your auto loan to add or remove a co-borrower. To determine if you need to add or remove co-borrowers, first we’ll need to cover why each can be beneficial depending on your circumstances. If you’d like to get started adding or removing co-borrowers, Gravity Lending can help. Tell us about your individual situation; we’ll give our feedback on whether this process will be good for you.
There can be multiple benefits to adding a co-borrower to your loan. For one, if your loan rate will decrease by adding a co-borrower, then you might consider it during the refinancing process with Gravity Lending. You may find that adding your spouse, or a loved one, to the loan lets you qualify for better rates and terms on a refinanced loan.
Another benefit of adding a co-borrower involves income. Some people may find that they can’t qualify for the loan they desire because of the income requirement. By adding a co-borrower, you can increase this income and qualify using the additional income from your co-borrower. With a better income, comes a loan with better terms and interest rates.
When we talk about the benefits of adding a co-borrower during refinancing, we would be remiss not to mention the idea of a safety net. It can simply be comforting to know that you have someone to lean on if disaster strikes. If anything should happen during the term of your loan, one of the benefits of a co-borrower is that you’ll have the help you need.
It is important to note, however, that a co-borrower has equal ownership in the vehicle. Be sure that you and your co-borrower understand and agree to any terms before applying. If your co-borrower ever wants to remove themselves from the loan, you must refinance again to remove them from your policy.
If you choose to refinance with Gravity Lending, we can also help you remove a co-borrower from your car loan. This practice typically benefits both parties, but in different ways. The borrower that remains on the loan will now take the first position on the new loan, show a loan paid in full on their credit profile, and continue to build credit from the new loan.
The co-borrower being removed will experience a decrease in their debt-to-income ratio and show a loan paid in full on their credit profile. In addition to no longer being responsible for the new loan, the removed co-borrower receives the credit benefits of showing a loan paid in full.
For this process to take place, your co-borrower will need to agree. With help from Gravity lending, removing a co-borrower has never been easier. We can handle the creation of a new title that reflects the removal of the co-borrower, without any risk to you. Our team can also help you obtain the necessary permission from the person you wish to remove, and help you navigate other aspects of your refinanced auto loan. For the best service from the best team of experts, partner with Gravity Lending now by starting your application.