Is Mortgage In Old Age Possible
As you age, there are opportunities that become less available to you. One of these opportunities is mortgage. This is a practice that has been there for years since lenders are usually not willing to lend to aged borrowers. As such, several mid aged and aged people who would have otherwise taken a mortgage are not able to get. The short life expected at this age means that you have fewer opportunities of repaying the loan. The lenders may take a look at the pension accumulation to see whether it can afford to pay the mortgage. Middle life people can now easily access loans since things have changed greatly.
Taking a brief look at the modern lifestyle will show you why this change has come. Most people are taking longer to school and therefore start working later in life. It is often already late before they settle and realize they need a home. This means that there are several midlife people who will be looking forward to owning a home. There has also been a increase in the divorce rate which means that several people are restarting life. The former situation had no way of taking care of such people. They therefore used to struggle a lot when they want to buy a new house. Things are now much better since the individual can easily take a loan and restart life in a new home. The life expectancy of the Americans has been rising. This means that they retire late and can, therefore, afford to make small payments over several years. Also, they are able to save more in their pensions which means that the payment for mortgage is available.
With these changing scenarios, lenders are seeing the opportunity and are exploiting it. As far as getting mortgage is concerned, age limitation is ceasing to be a factor. Finaciers are therefore giving attention to other things like the ability to make the repayments. Among such factors is ensuring that the mortgage value is less than 60% of the asset value. They will be interested in seeing what you have saved for your pension. As soon as they are satisfied with your ability to repay the loan, they will offer the finance.
This has made it possible for several people to live in houses of their dreams. You may choose to have a smaller house since your children have moved. You may also consider a home that has age-friendly features. This is now possible as the lenders are willing to transact with you on this. Make sure that you have clear repayment plan. If you don’t have it, it is important that you discuss with your children on how the house will be sold to provide money for mortgage settlement.