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Message edited 3/12/2014 8:45:10 PM.

Re: 30year mortgage?

I don't think there's a one size, fits all age cut off, in my opinion. So it's hard to say if it's a good idea without more info.

I think it depends on a person's financial situation and long-term ability to pay, which would also factor in the amount of the mortgage, future plans (if they are working, how long do they intend to? what type of income will they have in retirement, etc.).

I have sold co-ops to retired senior citizens in the past where they have taken out a 30 year mortgage. They obviously qualified for it.

Sometimes, with an older person (I believe the age requirement is 62 or older) if they have a significant down payment but concern about paying a mortgage every month, they opt for a purchase reverse mortgage. This allows them to just pay the taxes on the house but draw on the equity in the house to get money (rather than pay money). This sometimes comes up when an older, retired person sells their home and wants to buy another home (say, in a warmer climate). They may have $200K in cash to put down, but want to buy a $300K property. But maybe they can't qualify for a $100K mortgage. In that scenario, they could do a reverse mortgage.

But of course, if there is concern about children/family members' inheritance, this isn't ideal. By the time the house needs to be sold, all equity may be gone in the home (and then it's sometimes a burden for family members to come up with money to sell the home OR do a short sale, if necessary).

30year mortgage?

For me personally, I thought about the age I would like to retire and if the mortgage would be paid off before then. I do not want to have to worry about paying a mortgage when I retire. Even though we pay extra each year and will be paid off sooner than the 30 years, I didn't factor that in, just in case our finances got tight.

Re: 30year mortgage?

Re: 30year mortgage?

In my co-op complex, we recently had a new buyer come in with a 30 year mortgage.
She is 72 years old and did not want to tie up a big chunk of her cash (sold a house) in the apartment.

Bank would be repaid anyway when the apartment is sold.