sister in law wants to refinance home equity loan. she has great credit, husband doesn't. should husband cosign. house is in sister in laws name only, but husband lives in house.
For starters it depends on where your sister and her husband live, and what the laws are in that state. Some states are communal property states, giving husband certain rights should they divorce or if she meets her untimely end. Other states offer less protection.
First I'd look up with the legal ramifications are for where they live. What happens with the house if she dies, defaults, or they get divorced? Second, it never hurts to ask the lender how the terms might change if he co-signs. It's very possible that the rate will remain the same, in which case the husband's credit score may benefit while no harm comes to your sister or their loan. Third, the question of how finances are managed is up to the individual couple, and your sister and her husband are the only ones who get final say on whether the house is listed in her name on, or jointly.
