The Best Time to Get a Mortgage
The question of whether there is a specific time for individuals to borrow for their mortgage is a common one in the minds of many. The answer is that there is no time that is not ok for anyone to borrow for their mortgage. Each person can decide the right time depending on their lifestyle as well as their financial situation. If you travelled a lot during your early life and you did not earn something that could allow you to borrow, then that was not the right time. For a long time lenders all over the world have been hesitating to lend money to the elderly. Although the life expectancy has been on a steady increase, lenders are still unwilling to adjust their policy to include the elderly. Lenders are slowly changing their policy to accommodate the elderly.
In the recent past the age gap has increased slightly to pave way for those who are interested in mortgage at their old age. For prospective clients in their midlife, they can use FHA mortgage calculator to determine how much they can be allowed to borrow and what they will be expected to pay monthly. Currently the agenda of old age borrowing has been highlighted so much and now for all the residential mortgage borrowing, more than forty percent is in this category. You now can decide depending on the repayment amount other than basing your decision on age.
For you to make this important decision, there are several factors that you need to consider. Your decision should be based on the amount that you need to pay every month. The most important thing is to make sure your financial status can allow you to make your monthly payment and still have something that you can live on. You would consider your pension or any other income that will enable you to make regular payments. The lender can guide you on the maximum amount that you can borrow. You may be guided by the lender to borrow not more than sixty percent of the total value of the house you want to buy. What you need to do is to make sure you will not leave your family with a mortgage that you were not able to pay.
There are also advantages of getting a mortgage later in life. The attitude and the perception of the elderly have changed. Nowadays most people are still able to take challenges and make some important decisions in life even at their early sixties. Their opportunities are increased when they get a chance to access facilities through the lending businesses. The housing market is also able to benefit. A number of the elderly people are still using their old houses because they cannot access facilities to assist them get new houses. When they get the opportunity to borrow, they can buy new and more suitable houses leaving the others for the young ones to live in.