Financing question

[Rose]

I have excellent credit and have been told by more than one m-h dealer that there will be no problem getting financed, but it suddenly occurred to me that a 30-year mortgage - in my case - will mean I'll have a house payment until I'm 83 years old!!!!!! Do mortgage holders consider things like that when they're considering loans? In other words, do they think - hey she might be able to pay the notes while she's working, but how is a little old lady who's retired going to do it? I DO have a 401K plan, and will also have social security, but do they ask this or do they just assume that everybody plans for retirement? I will also add that I'm planning to put down between $10,000 and $20,000 if that matters.

Would appreciate some encouraging words.

[lgo_arch]

If you haven't done so already...check into a 15yr or a 20yr mortgage, the payments will be just a bit higher, but you make that up by not having an additional 10-15yrs of interest your paying....plus it can be paid off by retirement or soon after! Just a thought.

[Rose]

Thank you - I was thinking about that, but I don't want to be absolutely obligated to the higher payment, so I was thinking maybe I could get a 30-year mortgage but pay an extra amount towards the principal every month and get it paid off in 20 years. That is, if there wasn't an early pay-off penalty. But I still wonder if mortgage companies are going to hold my age against me when considering the 30-year mortgage.

Thanks again for your input.

[Ramb37 (old ron)]

Go for the 30 year mortgage anyway. Under federal law, lenders are not supposed to discriminate based on age, sex, religion, etc. Lenders are supposed to look at your ability to repay the loan, currently, not 30 years down the road. We are in our sixties and have been pre-qualified for a 30 year mortgage. (We are approved by a bank. Banks are the most conservative lenders.)

[rmurray]

There is an incorrect post here as an answer to you...It is true that lenders cannot discriminate by age....but there is an exemption in the law to allow a lender the ability to only offer financing for the expected lifes span of the person....Would it make sence to finance 30 years to a 100 year old person???

This is not your problem...Yop will get a 30 year loan very easily...Only you can decide if this is what you want...Actually nationally homes are refinanced or paid off every 5 years...Because lenders look at the big picture...the expectation is that they will not be paid one payment at a time for the full term..There most consideration is given to the near future and your likely hood to continue earning..They know it takes a few years to raise a little equity....Making it easy to sell out in an emergency...

Chose your home well and good luck

[Rose]

thank you - that makes sense, but it's still scarey to contemplate getting in debt for the next 30 years. On the other hand, if I lived in an apartment, I'd have to keep paying rent every month 'til I die -- and with nothing to show for it.............