4 ms·

If you don't mind me asking how old are you (I presume somewhere in 40s?)? This is scary as hell, to hear banks refuse loans due to age.

Jtsummers 4y ago
They don't. It's about finances, not age. If you die before you can finish paying off the mortgage they don't care, they'll either get the property or a payout from your estate.
- sowbug 4y ago
  Yes, the mortgage term just determines the amortization of the loan payments. 30-year loans hardly ever reach maturity. In the US, people move on average every 7 years. A bank would be delighted for a mortgage holder to die, causing the property to be sold and the loan to be repaid, if prevailing interest rates had risen since the loan was created. It's very sad that OP has been under the impression that age has anything to do with a loan term.
filoleg 4y ago
> This is scary as hell, to hear banks refuse loans due to age. They don't, it is illegal on the federal level to use age as a factor when determining eligibility for most loans (including mortgages) in the US. Check the "must not discourage you from applying or reject your application [...] based on these factors" section of this page[0] on the FTC website. That concern about age is just how the parent comment imagines it works, without checking how it actually is first. 0. https://consumer.ftc.gov/articles/mortgage-discrimination https://consumer.ftc.gov/articles/mortgage-discrimination
- phone8675309 4y ago
  It's illegal, but of course the banks won't tell you "you're too old" - they'll just deny you.
  - NovemberWhiskey 4y ago
    They can't do that either - they're legally required to give you an adverse action notice indicating why they are unable to extend credit. For conforming loans, they don't even care as they're just going to sell them anyway, rather than holding them on their books.

4 ms·

If you don't mind me asking how old are you (I presume somewhere in 40s?)? This is scary as hell, to hear banks refuse loans due to age.

by tukantje 4y ago

Jtsummers 4y ago
They don't. It's about finances, not age. If you die before you can finish paying off the mortgage they don't care, they'll either get the property or a payout from your estate.
- sowbug 4y ago
  Yes, the mortgage term just determines the amortization of the loan payments. 30-year loans hardly ever reach maturity. In the US, people move on average every 7 years. A bank would be delighted for a mortgage holder to die, causing the property to be sold and the loan to be repaid, if prevailing interest rates had risen since the loan was created. It's very sad that OP has been under the impression that age has anything to do with a loan term.
filoleg 4y ago
> This is scary as hell, to hear banks refuse loans due to age. They don't, it is illegal on the federal level to use age as a factor when determining eligibility for most loans (including mortgages) in the US. Check the "must not discourage you from applying or reject your application [...] based on these factors" section of this page[0] on the FTC website. That concern about age is just how the parent comment imagines it works, without checking how it actually is first. 0. https://consumer.ftc.gov/articles/mortgage-discrimination https://consumer.ftc.gov/articles/mortgage-discrimination
- phone8675309 4y ago
  It's illegal, but of course the banks won't tell you "you're too old" - they'll just deny you.
  - NovemberWhiskey 4y ago
    They can't do that either - they're legally required to give you an adverse action notice indicating why they are unable to extend credit. For conforming loans, they don't even care as they're just going to sell them anyway, rather than holding them on their books.