Adding a cosigner is always an option with CommonBond. Whether your application requires a cosigner or wish to bring one on, they can help you save thousands over the life of your loan.
1. Recent grads frequently refinance by adding a cosigner.
It can take time for you to build credit and income after graduation, but that is not a reason to miss out on reducing your total student debt. Adding a cosigner with a strong credit history can help recent grads qualify for refinancing, which can potentially translate to thousands of dollars in savings over the life of your loans.
Just how much can you save? If you lower the fixed interest rate on a 15-year loan by just 1%— say, from 7% to 6% on a $100,000 loan—you could pay roughly $10,000 less in interest over the life of that loan.
2. Adding a cosigner can potentially lower your interest rate.
Cosigners aren't just beneficial to new borrowers without credit history; cosigners can also help correct for any issues in your credit profile. When you choose a cosigner with a stronger credit profile than your own, you can also enjoy a lower interest rate on your refinanced loan. If you're wondering what makes for a strong credit profile, start by looking at your FICO score, one of the key components of your credit profile. If you aren't sure how to find your FICO score, check with your credit card company. Many cards come with free access to your credit score.
3. A cosigner doesn't need to be forever.
If you make consecutive, on-time payments for three years, you can request for your cosigner be released. Our team will review your account and will release your cosigner if you meet our underwriting criteria on your own. Many times, your credit and income can grow over three years, which means you could access the same interest savings on your own without a cosigner.
Still unsure if you should refinance with a cosigner? You can see if you qualify and get a rate estimate without any impact to your credit score on our site.