Why Age Is a Big Factor In Getting Approved for a Mortgage

Pennygem

A study from the Center for Retirement Research at Boston College found that homebuyers are more likely to get rejected as they get older, no matter the lender or mortgage type. And the findings were worse for men than women.

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00:00If you plan on applying for a mortgage in your golden years, it may be harder than you

00:08think. As reported by Money Talks News, a study from the Center for Retirement Research

00:13at Boston College, which looked at 5 million rate and term refinance applications from

00:18single borrowers between 2018 and 2020, found that home buyers are more likely to get rejected

00:25as they get older, no matter the lender or mortgage type. Specifically, borrowers between

00:31the ages of 60 and 69 were 1.54% more likely to be rejected than borrowers between the

00:38ages of 18 and 24, and borrowers over age 70 were 2.7% more likely to be rejected.

00:47Rate and term refinancing allows borrowers to switch from an existing loan to one with

00:52better terms. Across all of these borrowers, the rejection rate was 17.5%. Additionally,

01:00the study found that older men are more likely to be rejected than older women. While lenders

01:05are typically prohibited from determining a borrower's creditworthiness based on age alone,

01:11it can still be taken into account in some circumstances, according to the Retirement

01:16Research Center. If a borrower dies before a loan is paid off, it may need to be paid

01:21off early by their estate or sent into foreclosure, a scenario lenders may want to avoid.

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