Most people have more disposable income after they turn fifty years of age. The children are typically grown and out of the house, cars are paid off, and credit card debt is low if there is any at all. Many markets spend a lot of time and planning to appeal to mature shoppers. So why is it so difficult to get a mortgage, or refinance the house?
Although medical science has successfully lengthened the average life expectancy, some lenders still view aging applicants as a high risk for a fifteen or twenty-year mortgage. Lenders may approve a mortgage if the down payment is substantial. Refinancing may be an option if the requested amount is much lower than the equity in the house.
Approval may be dependent on stipulations, such as an insurance policy that will cover the mortgage in the event of death or having an adult child be a cosigner for the refinancing. Interest rates may be higher to make the transaction more attractive to the lender. Those conditions lower the overall risk for the lender.
Mature applicants can attempt to get a better deal with another lender. They can increase the amount of the down payment, or reduce the time frame for paying back the mortgage. It may be easier to get a ten-year mortgage.
Another option is working with a brokerage company that focuses on getting approval for mature applicants. Filling out a simple form online will begin the process. A broker will contact you with more information on the process, and to help explore alternatives.
How It Works
Searching all lenders will allow a broker to find the right mortgage to accommodate specific situations. Most brokers are compensated by the lenders so costs for services are minimal to zero. If a fee is charged, it will not be higher than one percent of the amount requested. A fee may be charged because there is no guarantee a lender will be found for every client.
Experienced brokerage firms that specialize in difficult mortgages also help people under different circumstances. Those who are self-employed, for example, are often denied mortgages by traditional lenders because business may or may not be stable. People with no or bad credit histories may also be denied by banks or credit unions.