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Old 02-16-2016, 03:48 PM
 
Location: RVA
2,172 posts, read 1,269,651 times
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Using a Home Equity line, is basically the same as lump sum Reverse Mortgage, except you have to make monthly payments, but the criteria are less stringent. I see nothing wrong with that. Leaving significant credit card debt that is excess of your estate is immoral, in that it matters not how it is covered, it eventually returns as increased cost to the company, and hence to the shareholders and others that use that same credit card. But I've seen more than one normally moral and religious person, once they knew they were approaching the end, do just that. Their response has been something like "The bank knows my age and knows the risk. If they were worried about it then they shouldn't have lent me the money." My late FIL bought a town house to live in with my MIL the last 2 years of their life. His credit was excellent, and he had adequate savings and income (Pension + SS) to cover. He put the minimum down and paid PMI over 30 years. I could not understand how the bank would lend an 85 year old the money for 30 years. During the last 6 months when they both got sick and were in and out of hospital and such, no one made any house payments or HOA payments. And when the last one died, the Executor emptied all the accounts and split it amongst the heirs, and let the bank repossess the house because it was at lease $30k underwater, which actually took 2 1/2 years after they died! Also didn't pay utility bills, and let them shut off services, owing money. When I mentioned the immorality of this to DW, she said she agreed, but it should have been up to the executor, not the heirs. My brother, sisters and I agreed to pay all outstanding debt from the estate when my mother died, and did. But it only amounted to a few hundred and her house was paid for. The FIL's Executor looked at it this way: If they paid the bank all the back mortgage payments, the bank still would repossess the house, and the heirs would all get significantly less. This was shortly after the Banking Bailout, and shafting the banks was easy to justify in peoples minds.

Last edited by Perryinva; 02-16-2016 at 03:59 PM..
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Old 02-16-2016, 03:52 PM
 
5,429 posts, read 3,455,723 times
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interesting scenario, Perryinva

I've often wondered why banks and other entities give 30 year mortgages to people in their 60's, 70's, and 80's. What is the rationale of the bank?
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Old 02-16-2016, 04:35 PM
 
Location: Verde Valley AZ
8,623 posts, read 9,692,127 times
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Quote:
Originally Posted by matisse12 View Post
interesting scenario, Perryinva

I've often wondered why banks and other entities give 30 year mortgages to people in their 60's, 70's, and 80's. What is the rationale of the bank?

I took out a 30 year mortgage at age 72. Of course the bank...and I!...know I'm not going to live another 30 years but they'll get their money while I'm still alive. After that it's up to the kiddos. Keep or sell, whatever they choose. The bank will get their money one way or another and I, in the meantime, have a home I really like and enjoy living in. So I guess I don't care what the banks "rationale" is. Just glad I was able to do it.
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Old 02-16-2016, 07:32 PM
 
Location: Baltimore, MD
3,745 posts, read 4,221,259 times
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Quote:
Originally Posted by matisse12 View Post
interesting scenario, Perryinva

I've often wondered why banks and other entities give 30 year mortgages to people in their 60's, 70's, and 80's. What is the rationale of the bank?
It is illegal to discriminate based on age.
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Old 02-17-2016, 08:40 AM
 
Location: Loudon, TN
5,792 posts, read 4,846,494 times
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Quote:
Originally Posted by matisse12 View Post
interesting scenario, Perryinva

I've often wondered why banks and other entities give 30 year mortgages to people in their 60's, 70's, and 80's. What is the rationale of the bank?
People die in all age brackets, of illness and accidents. Since banks don't require any health info to give you a mortgage, they could give a mortgage to someone with terminal cancer in their 30's or to a healthy 70 year old who may live there to 102 or possibly sell his home in 5 years and pay the bank back. I'm very happy that banks don't discriminate based on age. I would hate to think that soon I'd have to only rent or pay cash for a home simply because I'm over 60.
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Old 02-17-2016, 09:26 AM
 
Location: SW Florida
9,764 posts, read 7,047,160 times
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Originally Posted by TheShadow View Post
People die in all age brackets, of illness and accidents. Since banks don't require any health info to give you a mortgage, they could give a mortgage to someone with terminal cancer in their 30's or to a healthy 70 year old who may live there to 102 or possibly sell his home in 5 years and pay the bank back. I'm very happy that banks don't discriminate based on age. I would hate to think that soon I'd have to only rent or pay cash for a home simply because I'm over 60.
Guess it's been a long time since I applied for mortgage, but do they even ask you about your age? I'd say they might be able to figure out your approximate age from the other information you give the lending institution ( as in being retired, although ages for that vary), or the years at a job or current address, etc., but otherwise, how would they know?
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Old 02-17-2016, 09:32 AM
 
Location: Verde Valley AZ
8,623 posts, read 9,692,127 times
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Originally Posted by Travelassie View Post
Guess it's been a long time since I applied for mortgage, but do they even ask you about your age? I'd say they might be able to figure out your approximate age from the other information you give the lending institution ( as in being retired, although ages for that vary), or the years at a job or current address, etc., but otherwise, how would they know?

I wasn't asked anything about age when I applied for my mortgage but I'm pretty sure they could figure out that I'm no "spring chicken". lol They mostly care about how much money you can put down, can pay closing costs, insurance etc. and have good credit. My credit rating has only gone UP since I bought my house.
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Old 02-17-2016, 09:41 AM
 
Location: Loudon, TN
5,792 posts, read 4,846,494 times
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I've never been asked my age by a lender, pretty sure it's illegal.
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Old 02-17-2016, 10:38 AM
 
Location: Northern VA
512 posts, read 633,436 times
Reputation: 621
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Originally Posted by AZDesertBrat View Post
I wasn't asked anything about age when I applied for my mortgage but I'm pretty sure they could figure out that I'm no "spring chicken". lol They mostly care about how much money you can put down, can pay closing costs, insurance etc. and have good credit. My credit rating has only gone UP since I bought my house.
At one time after we had sold and paid off a mortgage but hadn't bought a new house yet my credit rating actually dropped! The explanation was that our mix of credit wasn't good.
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Old 02-17-2016, 11:31 AM
 
Location: Wasilla, AK
7,267 posts, read 4,154,513 times
Reputation: 15706
Quote:
Originally Posted by Travelassie View Post
Guess it's been a long time since I applied for mortgage, but do they even ask you about your age? I'd say they might be able to figure out your approximate age from the other information you give the lending institution ( as in being retired, although ages for that vary), or the years at a job or current address, etc., but otherwise, how would they know?

They make a copy of your driver's license. If they can't figure it out from that, they can always google your name.
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