The credit history of the cosigner suffers considerably when the borrower makes payments later than expected or fails to them. High consumer debt might result in a denial of your mortgage loan application. However, banks can only give you the rates on mortgages rising for their bank, and although they claim being very competitive, they often times are not. Part of the reasons why they are forced to have this agreement is because most lenders (read small banks) aren't broker friendly. As a result, the type of mortgage that you simply get can have a profound effect on your finances for most years to the future.
Before you begin working with all the first mortgage lender you meet, try taking some time to determine this really is the best choice. . If you've bad credit, however, refinancing your mortgage can be far more complicated and may cost you money inside the long run.