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I can't understand why any bank would lend a 75 year old tons of money for a mortgage on a home...30 years...yeah right. My neighbor took out a $263,000 note at 67 when first moving here, then took out a $100,000 dollar equity loan at the peak of the housing market. Does anyone in their right mind think she is going to pay it back? Her kids will run for the hills.
Between their probable down payment/equity there will probably be enough along with the appreciation to pay the bill. Also non beneficiary investments will be used to settle debt. They probably have a history of good credit and responsibility. We bought our second place at age 62 and were considered top candidates. If not paid for the mortgage company knows that between the down payment and market prices and credit history they are good.
I can't understand why any bank would lend a 75 year old tons of money for a mortgage on a home...30 years...yeah right. My neighbor took out a $263,000 note at 67 when first moving here, then took out a $100,000 dollar equity loan at the peak of the housing market. Does anyone in their right mind think she is going to pay it back? Her kids will run for the hills.
My best guess....A lender would want a hefty down payment at that age (maybe as much as 50%), and some kind of collateral. The lender would do a careful appraisal and would only loan in a solidly upscale community with the home in excellent shape. These items must be paid back through the estate left. If there is no cash left, the lender reclaims the home. The equity loan? I don't know what happens if there is no cash left in the estate. Probably a lien on the estate that might include jewelry and other valuables.
My best guess....A lender would want a hefty down payment at that age (maybe as much as 50%), and some kind of collateral. The lender would do a careful appraisal and would only loan in a solidly upscale community with the home in excellent shape. These items must be paid back through the estate left. If there is no cash left, the lender reclaims the home. The equity loan? I don't know what happens if there is no cash left in the estate. Probably a lien on the estate that might include jewelry and other valuables.
If the buyer is a veteran in good standing (honorable discharge), a VA loan requires no down payment and is guaranteed by the VA. Because of that it also requires no mortgage protection insurance. While credit does matter for getting the loan, the rates are set by the VA and age doesn't mater.
Our current loan is a VA and we just began the process of refinancing the loan through the VA at less than half the interest rate of our current loan which was quite competitive when we bought the house four years ago. The loan will outlive us but we couldn't care less. Principle will be paid down so much faster that everyone - the VA, the lender and our heirs - will benefit.
I can't understand why any bank would lend a 75 year old tons of money for a mortgage on a home...30 years...yeah right. My neighbor took out a $263,000 note at 67 when first moving here, then took out a $100,000 dollar equity loan at the peak of the housing market. Does anyone in their right mind think she is going to pay it back? Her kids will run for the hills.
I asked my BIL this a while ago, he is a loan officer. He said that the law says they can't discriminate. In many cases, the house is the only asset in the estate.
Excellent point. I wonder if it also takes into consideration all those who have or will become under-employed due to Obamacare and other factors.
From what I remember that you have shared you and the wife are excellent mortgage candidates. Solid income stream, low debt, assets and most importantly a solid history of personal financial responsibility. I use to say this a lot a few years ago. Going into retirement one of your most valuable assets is your credit history.
From what I remember that you have shared you and the wife are excellent mortgage candidates. Solid income stream, low debt, assets and most importantly a solid history of personal financial responsibility. I use to say this a lot a few years ago. Going into retirement one of your most valuable assets is your credit history.
Refinancing with another VA loan at less than half our current interest rate as we speak. I really think this will be our last hurrah!
Yeah! Anymore, credit ratings seem to rule lives. But that's a whole other subject!
Refinancing with another VA loan at less than half our current interest rate as we speak. I really think this will be our last hurrah!
I really learned the lesson when we got our second place three years ago and I asked our agent and the selling agent if they thought there might be a problem with loan approval because we were 62. They started laughing. We went from signing to buy to settlement in less than thirty days at a rate below market rates and what we locked in with. The other old folks went quickly also and went with the same regional bank etc etc.
Last edited by TuborgP; 08-12-2013 at 05:52 PM..
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