4 ms·
Well, if you're 50 and agree to a 30 year mortgage, then the bank expects you to pay until you're 80 or sell your house to pay off the remainder. I don't unders
by hervature 4y ago
Well, if you're 50 and agree to a 30 year mortgage, then the bank expects you to pay until you're 80 or sell your house to pay off the remainder. I don't understand how that's confusing? People have income in their retirement. They shouldn't take a big mortgage if their retirement savings are small.
- whimsicalism 4y agoYes, aka the amount of the loan matters, not just the monthly payment.
- hervature 4y agoThere is a one-to-one relationship between "amount of the loan" and monthly payments. I don't see how that's relevant. Do you mean the length of the loan? Banks don't give mortgages to 100 year olds because they know they won't be able to afford the monthly payment in 20 years (because they are dead), it doesn't matter of the loan amount. Even for a 50 year old, I would expect it would be hard to find any bank give you a loan for longer than 15 years. Each bank is different and a cursory search shows that some banks consider giving you a mortgage if the end date is before you turn 95. The point remains, this has nothing to do with amount.
- whimsicalism 4y ago1. Only if you don't take into account the length of the mortgage. You can have the same monthly payment for two entirely different amounts if you are paying for different lengths of times. Borrowers are not agnostic to this. This is contrary to your suggestion that monthly payment is all that matters. 2. It is largely illegal to discriminate by age when lending, I know plenty of people in their 60s or 70s who have taken out 30 years.