1 Overlooked Reason Why You May Regret Cosigning a Loan

Christy Bieber, The Motley Fool
·3-min read
1 Overlooked Reason Why You May Regret Cosigning a Loan

The problem is that when you need to take out a loan, such as a mortgage, car loan, or personal loan, lenders are going to consider your debt-to-income ratio (DTI) when they decide whether or not to allow you to borrow. Your DTI is the amount of your total monthly debt payments relative to the amount of income you have. If you've cosigned for a loan, its monthly payment is included in your DTI.