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Home >> Lending >> Home Mortgage
Defining Terms of Loan Agreement
I need to know who is a borrower and who is a coborrower and who is a mortgagor and who is a guarantor. My husband did not qualify for a loan to buy our condo, because we purchase everything with cash, not for having bad credit. His sister helped him to get approved, but now I need to know exactly the meanings of these words, because we do a yearly renewal and now she is coming up as the borrower and my husband as the coborrower on some of the documents, and on others she is the mortgagor and he is the second mortgagor.
I am very worried my husband is uneducated and the two of them normally go to have it renewed. Is this something I should be worried about? Please help me understand this better; I am seven months pregnant and do not need the stress.
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 It isn't anything to worry about. The borrower and co-borrower have the same status and obligation. It may simply be a case that one person was listed first and the other second. Each has an obligation, and each should be reported as to credit, assuming the lender reports. "Mortgagor" is the same.
If this loan has been renewed several times, your husband may want to apply for renewal under just his name, to relieve his sister of the obligation, if that is desired. It still depends on his qualifications, but it is a thought, if she is on the loan solely for his benefit.
Published on BankingQuestions.com 2/18/10
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