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Mortgage after 75 years old

Old 02-03-2018, 12:39 PM
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Default Mortgage after 75 years old

How difficult is it to get a mortgage on a home or condo after you get 75-76 years old.
Thinking of selling our 5 bedroom house and moving to the coast into a smaller home/condo.
Do they limit you on terms 15 year, 30 year? We would have a sizable down payment $150,000 or so.
Old 02-03-2018, 12:40 PM
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Do you have any income? Any collateral that can be used?
Old 02-03-2018, 12:47 PM
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Shouldn’t be a problem, call a mortgage broker
Old 02-03-2018, 01:05 PM
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While I'm not a big fan, at 75-76, you should at least look into a reverse mortgage. If you selling a big house, I'm guessing you will have enough proceeds to put a decent sized down payment on the condo. A big down payment and a reverse mortgage, you won't be making any payments.
Talk to a mortgage broker who specializes in reverse mortgages.
Old 02-03-2018, 01:34 PM
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It all depends on income. You count have $4M in the bank but if it doesn’t provide enough income to support the mortgage you won’t get a $200k loan (sarcastic but somewhat true).
Old 02-03-2018, 01:37 PM
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As long as you are showing income...
Old 02-03-2018, 01:40 PM
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You need income of a size to be able to afford the payments. In most cases, that's not happening, and you won't qualify. What you have in the bank or market is irrelevant, unless you pledge it as collateral, which means they hold the funds.

A reverse mortgage loses equity, it doesn't build it. https://www.bankrate.com/finance/mor...uy-a-home.aspx
Old 02-03-2018, 01:49 PM
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Originally Posted by chuck34 View Post
While I'm not a big fan, at 75-76, you should at least look into a reverse mortgage. If you selling a big house, I'm guessing you will have enough proceeds to put a decent sized down payment on the condo. A big down payment and a reverse mortgage, you won't be making any payments.
Talk to a mortgage broker who specializes in reverse mortgages.
I would absolutely not even - for a moment - think of entertaining this idea.
Old 02-03-2018, 01:52 PM
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My wife and I have a really nice defined benefit pensions and social security. and the payment will not be a problem.
She gets full amount of my pension when I die.
Old 02-03-2018, 01:55 PM
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A debt to income ratio for a traditional mortgage is 43%. So all debt payments cannot exceed 43% of your income each month. Sometimes, with bigger cash reserves and a big down payment, they may go up to 50%.
Old 02-03-2018, 01:56 PM
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Lenders are not allowed to discriminate because of age so you will be fine and you can enter into any length term you want (30yr; 15yr; etc...). Fixed income like pension, social security is as good as gold.
Old 02-03-2018, 01:57 PM
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I sell insurance and have a retirement condo complex down from my office. I probably insured 60 people buying condo's in the past year over age 70 with a mortgage.
Old 02-03-2018, 02:06 PM
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Originally Posted by bjm9818 View Post
It all depends on income. You count have $4M in the bank but if it doesn’t provide enough income to support the mortgage you won’t get a $200k loan (sarcastic but somewhat true).
Actually, some lenders will use assets as income. $4M will net you about $10k a month in qualifying income.
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Old 02-03-2018, 02:26 PM
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Originally Posted by chuck34 View Post
While I'm not a big fan, at 75-76, you should at least look into a reverse mortgage. If you selling a big house, I'm guessing you will have enough proceeds to put a decent sized down payment on the condo. A big down payment and a reverse mortgage, you won't be making any payments.
Talk to a mortgage broker who specializes in reverse mortgages.
Nope.
Old 02-03-2018, 02:28 PM
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Originally Posted by chuck34 View Post
While I'm not a big fan, at 75-76, you should at least look into a reverse mortgage. If you selling a big house, I'm guessing you will have enough proceeds to put a decent sized down payment on the condo. A big down payment and a reverse mortgage, you won't be making any payments.
Talk to a mortgage broker who specializes in reverse mortgages.
Old 02-03-2018, 02:30 PM
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Sounds almost like rent to me. Its doubtful he'd ever pay off a 30 year note. Very few will.

Originally Posted by OldPete View Post
I would absolutely not even - for a moment - think of entertaining this idea.
Old 02-03-2018, 02:32 PM
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Originally Posted by OldPete View Post
I would absolutely not even - for a moment - think of entertaining this idea.
I never said it was a great way to go, I just suggested looking at it and making up your own mind
Old 02-03-2018, 02:37 PM
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Shouldn't be an issue. My father in law took out a $150K mortgage at age 76 to buy a condo. He eventually sold his house and paid off the condo mortgage. His pension and SS income is about $3000 per month.
Old 02-03-2018, 03:24 PM
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Father n Law just did it after selling his flooded house, had the cash, with rates as low as they are and what the Market is doing he can do a 15 year note, invest wisely and make money off the 50% he kept in his pocket. He is 77 and has a solid retirement.

John
Old 02-03-2018, 03:35 PM
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Originally Posted by anonymous_coward View Post
Lenders are not allowed to discriminate because of age so you will be fine and you can enter into any length term you want (30yr; 15yr; etc...). Fixed income like pension, social security is as good as gold.
This is exactly correct.

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