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Finance: What is a Co-signer? 7 Views


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Description:

What is a Co-signer? A Co-signer is a 3rd party who agrees to also be held liable for a financial obligation in the event that the primary signer defaults. This is often the case with students, where a parent will co-sign a lease for off campus housing, car loans, or other types of finance when the primary signer runs a higher risk of default.

Language:
English Language

Transcript

00:00

Finance a la shmoop what is a cosigner? well it's just this oh wait

00:08

that goes in the trigonometry video people why don't you do this all right [Man discussing trigonometry]

00:13

never mind cosigner it's this... okay all right we're in finance so a cosigner is

00:19

this there we go it's your mom you really wanted that

00:24

condo with the nice view of the park the cool arts district and the local dentist [Dentist office building]

00:29

office nearby for some weird reason but the building owners just didn't trust

00:33

you alone to make the payments yourself which makes sense given that you're a

00:37

part-time barista who takes at least one sick day every week you blame them so [Sick days marked on calendar]

00:42

your condo dream seems a well a bit out of reach luckily for you the bomb

00:48

or Bank of mom came in handy when she co-signed the loan along with you all [Mum signing loan agreement]

00:54

right what does that co-signing mean well it means that you are the first one

00:59

obliged to pay the monthly payments on your loan but if you don't well then the

01:03

Bank of America way bigger than the bank of mom can come after mom and she is

01:09

directly legally obligated to pay the loans that you promised - hey so yeah

01:16

you got your condo dream but mom's living quarters aren't so spacious yeah [Mum laying in a car backseat]

01:21

well you made her co-sign for your deadbeat self hanging her butt up to dry

01:26

and now she's well enjoying the view from her SUV parked on the curb of the [SUV window winds down and Mum appears]

01:31

road outside the dentist hang in there mom you'll get a better

01:35

parking lot slot with a view someday

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