Choosing a loan term with the whole horizon in view
Entry 5: age is not a term limit
Ledger note
The Equal Credit Opportunity Act generally prohibits lenders from denying credit or setting terms based on age, so an older borrower can apply for a 30-year loan like anyone else. Lenders still verify that income, including retirement income, is stable and likely to continue. The personal question is how the loan fits your estate and retirement plans.
Last reviewed against the primary sources listed below.
What lenders look at instead
- Retirement, pension and Social Security income documentation.
- Assets that can provide income.
- Debt compared with income, as for any borrower.
Planning questions
- Do you want the home paid off at retirement, or is a low payment more useful?
- What happens to the loan for your heirs?
- Would a housing counselor's review help? Find one here.
Term questions readers send
Can an 80 year old get a 30 year mortgage?
Lenders generally may not deny credit because of age under the Equal Credit Opportunity Act. An 80-year-old applies like anyone else and must show income to repay.
Does age affect mortgage approval?
Age itself should not, under federal law. Income, assets, credit and debts do.