Rosanna

My sister is getting into serious trouble with her home and it may be foreclosed. She bought into one of those designer mortgages several years ago and now the interest rate is ridiculously high and her mortgage is double from what she started with. If I co-sign to help her refinance her home, she could get a significantly lower (more affordable) fixed interest rate. Should I co-sign for her?

What are the risks involved? How is co-signing for a house different than co-signing for a car? How does it affect my credit? How does it affect my future with home-buying? I don't own a home yet, but what if my husband and I are ready to buy our first home in the next one to five years?