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The cosigner can be held responsible for the loan if the original signer does not repay. Thus, the creditor has another means of access to the money, similar to collateral, and thus the presence of a cosigner lowers the interest rate.

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โˆ™ 2014-08-22 21:56:24
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Joe borrowed 8000 dollars on a one year note at 13 percent how much will joe owe when the note comes due

How much time will a 500 investment need to earn 100 in interest at a rate of 10 percent per year

1000 dollars in a savings account pays 7 percent interest per year The interest earned after the first year is added to the account How much interest is earned on the new principal the following year

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Q: Does having a cosigner lower the interest rate?
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Related questions

If you have bad credit does having a cosigner with good credit on the loan lower your interest rate?

No. You are considered the primary debtor and therefore the interest rate would depend on your credit history.


When is normal interest rate lower then effective interest?

Only on Tuesdays.


What advantages do ARM loans have over regular mortgages?

One of the main benefits an ARM loan has over a regular mortgage is the interest rate. Should the interest rate drop, one with an ARM loan has an advantage of a lower interest rate without having to refinance. Monthly payments will be lower as well with an ARM loan due to fluctuating interest rates.


What occurs when a bonds stated interest rate is less than the market interest rate?

Since the current market interest rate is higher, it is more attractive to a new investor then the bond with a lower interest rate. Thus, the price of the lower interest rate bond has to decline to be competitive with new bonds in the market.


What are the risks of having a high interest rate?

Having a high interest rate greatly affects the account it belongs to. It will add up to high finance charges which will increase the balance, increase the monthly payment, and lower the amount of the payment that applies to the principle.


Personal loans should have a lower interest rate than student loans.?

Personal loans should have a lower interest rate than student loans.


Will having a cosigner lower your APR or enable you to borrow more?

The lender should be looking only at your ability to repay the loan when they determine the amount they will lend, since they assume you will be making the payments. They also want to be sure the cosigner can make the payments if you don't, but they would not combine the two financial statements to determine the amount that the two of you together could afford. They may offer a slightly better interest rate, but if the lender wants you to get a cosigner, it usually means you will not get a loan without one.


How interest rate affect the value of us dollar?

its actually the other way around. the value of the us dollar effects interest rates. the lower the us dollar is worth, the lower the interest rate


What is an advantage of having an interest rate credit card?

The advantages of having a credit card with an interest rate is it helps build one's credit faster. The higher the interest rate of the credit card, the higher the credit score.


What is sub-prime rate of interest?

It is one kind of interest rate lower than themarket interest rate for a target group. This type of interest rate was used in USA house mortgage loan to capture all the lower income people. This is the one significant cause of present economic crisis.


Foreclosure can you buy a new home with cosigner?

You can buy a home after foreclosure without a cosigner as soon as 6 months after a foreclosure 12 months if it's also a bankruptcy. The issue is the interest rate. Unfortunately a cosigner doesn't seem to help much in getting the interest rate better. The good news is that in the current market, you are bound to find plenty of homes for rent very cheap. Many times below what the interest rate is. If you are younger you still have many years to rebuild your credit and hopefully you can get back into your own home with a reasonable rate in 7-8 years after your foreclosure. You can buy a home after foreclosure without a cosigner as soon as 6 months after a foreclosure 12 months if it's also a bankruptcy. The issue is the interest rate. Unfortunately a cosigner doesn't seem to help much in getting the interest rate better. The good news is that in the current market, you are bound to find plenty of homes for rent very cheap. Many times below what the interest rate is. If you are younger you still have many years to rebuild your credit and hopefully you can get back into your own home with a reasonable rate in 7-8 years after your foreclosure.


What is the prime interest rate?

The "Prime Interest Rate" is the interest rate used by banks to base all their loan interest rates (and sometimes other interest rates) on and is usually lower than the lowest rate charged on loans to customers with the best credit ratings.

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