Am I too old to get a 30-year mortgage?
Can a 70-Year-Old Get a 30-Year Mortgage? Yes. There is no age limit to a mortgage application. If you have a substantial down payment and a steady income (which can include pension and Social Security payments), you have a good chance of approval regardless of your age.
Absolutely. The Equal Credit Opportunity Act's protections extend to your mortgage term. Mortgage lenders can't deny you a specific loan term on the basis of age.
You may want to stick to a shorter-term loan
But if you sign a 30-year mortgage in your 50s and you don't accelerate your payments, then you can pretty much bank on not paying off your home until you reach your 80s.
Age doesn't matter. Counterintuitive as it may sound, your loan application for a mortgage to be repaid over 30 years looks the same to lenders whether you are 90 years old or 40.
If you can demonstrate an ability to repay the loan before you're 75 years old, they will consider your application no matter your age! For example, if you needed to borrow $300,000 and were 50 years old, the standard 30-year mortgage term could be reduced to 25 years and your loan would be approved.
No age is too old to buy or refinance a house, if you have the means. The Equal Credit Opportunity Act prohibits lenders from blocking or discouraging anyone from a mortgage based on age. If we're basing eligibility on age alone, a 36-year-old and a 66-year-old have the same chances of qualifying for a mortgage loan.
There is no official age limit for mortgages, but it is harder to get a standard mortgage when you near retirement. Some equity release products, where you use the value of your existing home to fund later life, have a minimum age limit.
“Today's first-time buyers are due to pay off their mortgage at 65-years old on average, compared to 53 in 1990 as sky-high house prices force buyers to extend their mortgage term to make their payments more affordable. “Rising mortgage terms mean more of us will still have housing costs in retirement in the future.
When you're in your 50s, buying a house might cut into your retirement savings significantly, if it pushes your living costs up much higher. Maximizing your retirement contributions may ultimately net you more money than the cash you'd save by paying off a mortgage in the 15 or 20 years before you retire.
Some retirees may prefer a shorter loan term, which might make it easier to manage monthly payments and pay off the loan sooner. However, "I've done many 30-year loans for 70- and 80-year-old homebuyers," says Cameron Phelps, Sales Manager at Orchard Mortgage.
At what age is it harder to get a mortgage?
The upshot is that if you're over the age of 62, you're almost 30% more likely to get rejected for a standard mortgage.
The mortgage application process is typically very similar, regardless of your age. The main difference is that as you reach or approach retirement age, mortgage lenders will want to see pension forecasts to assess your ability to repay your mortgage once your regular income stops.
He said as people get older they generally have less income, mostly because they've stopped working. Linna Zhu at the Urban Institute said that's one of the main reasons seniors are more likely to be denied if they try to refinance or get a new mortgage.
You Can Get a 30-year Mortgage at Any Age
You could be 99 years old and get a 30-year mortgage as long as you qualify. The lender may not deny a loan because they don't think you'll live long enough to pay it off. But the law addresses more than just the age at which you apply.
So if you are 47 and you are looking for a mortgage that takes you until age 67, you would only potentially be eligible for a 20 year mortgage term.
Discrimination against credit applicants on the basis of age is prohibited by the Equal Credit Opportunity Act. However, while lenders may not consider age per se when qualifying an applicant, they can look at age-related factors such as whether that applicant's income might drop because they are about to retire.
So what can you afford with only Social Security income? Remember, lenders will cap the size of your home loan so your debt-to-income ratio does not exceed 43%. That means your monthly mortgage payment can be no more than $713 ($1,658 X 0.43).
If you're 62 or older and own a home, another way to tap home equity is to apply for a reverse mortgage. Unlike a common home equity loan, a reverse mortgage won't require repayment right away.
Age doesn't matter. What matters is, how much money do you have, and what is your income going to be going forward? If you buy a house, and it eats up all your savings, so that you are going to go into retirement with nothing…. that's a bad plan.
Summary: maximum age limits for mortgages
Many lenders impose an age cap at 65 - 70, but will allow the mortgage to continue into retirement if affordability is sufficient. Lender choices become more limited, but some will cap at age 75 and a handful up to 80 if eligibility criteria are met.
How many 65 year olds still have a mortgage?
But when I started to look deeper at the figures and thought about how expensive housing has gotten and how many people can't afford a home until later in life, the numbers started to make a lot of sense.” Channel found that about 9.6 million homeowners 65 and older have a mortgage, while more than 16 million ( ...
Demonstrating proof of income may be different than it would be for working borrowers, but retirees who qualify can even take out a 30-year mortgage; lenders cannot base their decisions on an applicant's life expectancy.
"Shark Tank" investor Kevin O'Leary has said the ideal age to be debt-free is 45, especially if you want to retire by age 60. Being debt-free — including paying off your mortgage — by your mid-40s puts you on the early path toward success, O'Leary argued.
Key Takeaways. Paying off your mortgage early could free up your cash for travel, retirement, or other long-term plans. Being mortgage-free may insulate you from losing your home if you run into financial difficulties.
| Generation | Average total debt (2023) | Average total debt (2022) |
|---|---|---|
| Millenial (27-42) | $125,047 | $115,784 |
| Gen X (43-57) | $157,556 | $154,658 |
| Baby Boomer (58-77) | $94,880 | $96,087 |
| Silent Generation (78+) | $38,600 | $39,345 |
