Profile picture for sparklerrf

Should a person even consider getting a 30yr mortgage when they are over 60 years old?

We have cash available for a considerable  down payment but don't know if we should use it all for a house.
 
  • June 03 2014 - Kennewick
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Answers (5)

Profile picture for ssydor

The answer to this question is complicated and would depend on a number of factors. I would advise meeting with a trusted financial planner.

I have had clients in that age group who could pay cash and who have decided to get a 30 year loan because rates are so low and they want their cash available for other investments. I have also had clients in that age bracket who would not consider a mortgage at that point in their lives.

  • June 04 2014
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I think what you're asking is more of a finance question, pertaining to preservation of liquidity rather than the ability to get a loan.  That's a tough question, and one without a clear answer--particularly on the very limited facts given, but clearly liquidity has benefits.  It would also depend on what your retirement income is likely to be, because in addition to the liquidity you need to consider the monthly payments.  The more liquid you stay, the more your monthly payments will be.

You really need a very good financial adviser who can review your entire situation.
  • June 04 2014
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Present law prohibits lenders from discriminating based on age. Dodd-Frank will remove this prohibition as it is fully implemented. If you are going to do it, do it now.

  • June 04 2014
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That depends on how much borrowers wish or can pay.  Assuming you have social security, pension, and a 401K how many years both you and your spouse can attain that income?   If one is gone sometime in the future the lone survivor has to pay alone. 

My impression is if you want hassle free life style paying off more or shorter term buys some peacefulness. A large percentage of senior citizens do not have a mortgage.  Some borrow and refin and took out the equity and lose the home they had after living in it for 40 years.

Sam Shueh
Keller Wms Realty
  • June 03 2014
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Profile picture for daveskow

unfortunately there is no  correct answer to this  question ......you might ask to see  several loan amount scenarios  so you can get a realistic  feel as to what payments would be   and what amount of  cash you would need to part with

in general - I would think that depleting  a large amount of  your cash reserves is likely not the best idea

thanks ...you can contact me via my profile if you would like soem additional  assistance ...all the best

  • June 03 2014
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