I own my house outright, but I am 75. Can I refinance?
Age isn't a barrier to getting a mortgage, thanks to The Equal Credit Opportunity Act that makes it unlawful to discriminate against an applicant because of age.
Seniors often have good reasons to want to refinance. They may want to refinance to lower monthly payments, especially if on a fixed income. They might want to downsize to a smaller home or buy a vacation home. Sometimes their existing homes are in need of repair. Or they have a lot of equity in a home and want to draw on the equity for living expenses.
As every homeowner knows, the mortgage payment is not the end of expenses when owning a home. Sometimes, if cash is limited, the best way to make serious repairs can be using equity
There are several mortgage options for seniors, including conventional loans that require a 20 percent down payment or private mortgage insurance.
Cash-out refinancing can give a homeowner cash from the home's equity that can be used for repairs.
A home equity loan, with a fixed rate and fixed payments, can be a good option if you have at least 20 percent equity.
Homeowners over age 62 who own their home outright (or almost) may quality for a Home Equity Conversion Mortgage through FHA approved lenders. This is a reverse mortgage insured by the federal government.
With all these options, good credit, sufficient income and low debt make a big difference in qualifying for a mortgage.
For people with a lot of savings, but not a lot of regular income, lenders can compute qualifying income based on assets instead of continuing income.
