Getting a good deal on a home loan can be tricky no matter how old you are, but those who are over 50 should heed some very specific advice. If you are approaching your golden years, this article will help you to buy a home without paying more than necessary. The fact is that the older you get, the harder it is to get a decent mortgage. A lot of lenders place age limits on borrowers, but there are some workarounds.
Extending Your Mortgage
If you already have a mortgage, it can be tempting to extend your term. This is commonly referred to as remortgaging, and it can be a good idea for some people. If you are able to successfully remortgage, you will have a lower monthly rate but will pay more in the long term. This is something that you should think about doing only if you are really struggling to make payments right now. Just keep in mind that you will spend more on your loan overall.
Overpaying
It is recommended that you try to pay more than the minimum on your mortgage each month so that you can pay it off faster. Not all mortgages allow for this, so you will want to check before trying to do it. When you are looking for a mortgage, make sure that you get one that allows overpaying. You might need to tighten up your belt for a little while, but you will save a lot of money in the long term. The sooner you pay off your home loan, the sooner you can stop worrying about making payments each month. It will be a huge weight off of your shoulders.
Getting a Mortgage Over 60
Once you are in your 60s, getting a mortgage can get especially tricky. Most lenders will limit borrowers to a term of 10-15 years, which isn’t really that bad depending on the cost of the house. A shorter term might look nice at first, but keep in mind that your monthly payments will be substantial. Make sure that you can afford a shorter term mortgage so that you don’t make a horrible mistake. You don’t want to take out a home loan only to discover later on that you can no longer make your payments.
Mortgages over 70
If you are over 70 years old, you will find that getting a home loan can be a real struggle. If you have a guarantor (someone who is willing to take over payment of the loan if you can no longer pay), your chances will be better. Just make sure that you spend enough time looking for a guarantor that is reliable so you can actually get approved. Sometimes even a guarantor won’t be enough to get a mortgage over 70, but it’s certainly worth a try. You will find that some lenders are more flexible than others, so it’s all a matter of doing your research.
Turn to a Credit Union
A credit union could really help you out if you want to get a mortgage but are having a hard time due to your age. These financial institutions have a history of being more relaxed when it comes to who they will lend money to. There is never any guarantee that you will get the money you need, but it’s worth looking into. Take some time to find a reputable credit union in your area so you can be sure that you’ll get the best deal possible.
Get Organized
The more organized you are when applying for a mortgage, the more likely you will be to get approved. If you are over 50 years old, it is particularly crucial that you have everything you need when applying. Lenders tend to look more favourably upon applicants who seem like they are organized and financially “together”. Make sure that you fill out an application loan to save yourself a lot of time.
Weigh the Risks
There is always risk involved in taking out a loan, so you need to weigh the risks before making a decision. Take a long hard look at your budget before you fill out any paperwork or submit an online application for a mortgage. The last thing you want is to get stuck in a situation where you are having your house repossessed by the bank.
If you have decided that you cannot afford a house, it’s not the end of the world. There are plenty of other options available, such as condominiums and apartments. You may have your heart set on a house, but you must decide if it’s a realistic goal. You should never trick yourself into making a bad financial decision, especially when it involves buying an entire house.