Steve and Lisa's Mortgage Morsels

Residential Mortgages for Seniors

March 2nd, 2012 9:51 AM by Steve Iltis

 

 

1. Senior Citizens are eligible for Mortgage Financing regardless of their age.

2. The follow are some of the most popular Residential Mortgage Loans available for Seniors with NO Pre-payment Penalty:

  • 30 year fixed (interest rate is fixed for entire 30 years)
  • 15 year fixed (interest rate is fixed for entire 15 years)
  • 7 year fixed (rate is set for seven years-loan amortized over 30 year term)*
  •  5 year fixed (rate is set for five years-loan amortized over 30 years)*
  • 1 year adjustable (rate adjusts annually-loan amortized over 30 year term)*
  • VA loans are available for Veterans with No Down Payment

        *Amortization-The paying off of debt in regular installments over a  period of time.

**The shorter the period the interest rate is fixed the lower the rate-Some seniors choose the lower terms if their intention is to pay off the entire loan in that time frame.

3. Seniors qualify for their mortgage by supplying any of the following sources of income:

  • Social Security Benefits
  • Pension Income
  • Interest/Dividend Income from Investments

4. Getting Pre-Approved for a mortgage is recommended to help you determine what price range of homes to purchase.

5. REVERSE MORTGAGES: are also available for those Seniors over age 62 who purchase their home with cash and decide later to have a lender pay them retirement income from the equity in their home. The homeowner will receive a monthly, quarterly, annual or lump sum check. The homeowner makes no interest payments. The Lender gets their money back when the home is sold.

6. Remember-You, your Realtor and your Lender should be working together as part of the same team to make buying your home an enjoyable and positive experience!



Posted in:General
Posted by Steve Iltis on March 2nd, 2012 9:51 AM

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