However, the primary borrower is the one to typically complete the loan application first and thus serves as the main point of contact for the loan. For both borrowers, the lender considers income, credit history and financial stability as crucial factors for loan approval and terms.
A co-borrower is any additional borrower whose name appears on loan documents and whose income and credit history are used to qualify for the loan. Under this arrangement, all parties involved have an obligation to repay the loan. For mortgages, the names of applicable co-borrowers also appear on the property's title.
Some lenders, however, may indicate a “primary borrower.” The criteria for determining who this person is differs among mortgage lenders. Some may define the primary borrower as the person with the higher income, for instance, or as the person whose name appears first on the application.
In the primary mortgage market, lenders make loans to borrowers at a certain interest rate, whereas in the secondary market, lenders securitize these loans into mortgage-backed securities (MBS) and sell them to investors.
Borrowers in the primary market can choose from various loan types, such as fixed- or adjustable-rate mortgages, whereas the secondary market deals with trading these loans among investors. The secondary market helps stabilize the mortgage system by replenishing lender funds, potentially lowering costs for borrowers.
The Primary Account Holder is responsible for maintaining the account balance, ensuring bill payments, and setting up account alerts. The Secondary Account Holder can assist the Primary Account Holder in account management and monitoring.
Banks, mortgage brokers, mortgage bankers, and credit unions are all primary lenders and are part of the primary mortgage market.
As the cosigner, you can't remove the primary borrower from the loan. Unfortunately, since you have no legal rights to the vehicle, the primary borrower has to take the initiative to remove someone's name from the contract.
However, if the primary borrower defaults and the co-signer doesn't step in to pay, the co-signer is held responsible, and their credit score may suffer. Co-owners, on the other hand, are equally responsible for the loan from the start. If payments are made on time, both parties' credit scores can improve.
A quick definition of secondary lender:
A secondary lender is a company that buys home loans from banks and savings-and-loan associations. This helps these banks and associations have more money to lend to people who want to buy homes.
In other words, if you wanted to get in the car and drive away with it, you'd have the right to do so, since (presumably) you're the owner of the car as well (this does not apply if you're only a co-signer on a loan). You could also take the co-signer to court for financial damages.
Yes, removing someone from a mortgage is possible, but the most common method is refinancing the loan solely in the name of the person who will retain ownership of the property. This involves obtaining a new mortgage that pays off the existing one, releasing the other party from their obligation.
Cosigners can take the primary borrower to court if the primary borrower fails to repay the loan or otherwise fails to fulfill the terms of their agreement. As you learn about getting a cosigner, you'll see that they can help you get a loan you may not otherwise qualify for.
Borrower's Responsibilities:
Make loan payments on time. Make payments despite nonreceipt of bill. Notify servicers of changes to your contact or personal information.
Your best option to get your name off a large cosigned loan is to have the person who's using the money refinance the loan without your name on the new loan. Another option is to help the borrower improve their credit history. You can ask the person using the money to make extra payments to pay off the loan faster.
So, if the primary borrower is unable to pay as agreed, the co-signer may have to pay the full amount of what's owed. Second, a co-signed loan will appear on the co-signer's credit reports. The co-signer's credit scores may be positively or negatively impacted by the borrower's credit behavior.
Primary Borrower means the principal person or primary applicant that applied for the loan or credit facility.
The primary market is the place to go to find a loan to buy a house. The secondary mortgage market is the place where the bank sells the mortgage and it is then traded around between buyers and sellers in the secondary market.
When evaluating borrowers for a joint mortgage, the lender cares less about who is listed first, and more about the sum of the applicants' earnings and debts. In general, the lender evaluates the application the way the applicants submit it, without regard to whose name is listed first.
The easiest way to tell is to check your statement in online banking under Statements or on the printed copy of your statement. The name listed first is the primary account owner. Joint account owners are listed under each share account as you view down the statement.
Most joint bank or credit union accounts are held with “rights of survivorship.” This means that when one account owner dies, the money passes to the surviving owner, or equally to the rest of the owners if there are multiple people on the account.
While no account holder can remove another account holder from a joint account without that person's consent, few banks will stop you from withdrawing or transferring the entire balance on your own. The most common joint account holders include parents and their children, spouses, and other close family members.