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age discrimination in mortgage refinancing

We have been attempting to refinance since 10/20

we have excellent credit and we purchased our home in june 2018

My husband and I are both 75, we keep being asked for the same info to be updated

There was no problem when we purchased 3 years ago. could this be age discrimination?\

refinance would save us $1000 a month.

Donna Swanson

Honored Social Butterfly

@DonnaS531513 

you asked:  There was no problem when we purchased 3 years ago. could this be age discrimination?

 

Probably not - It is illegal for a lender to use age as a dis-qualifier for a home loan.

But there could be other things.

You have told us a few things about yourselves - like you have excellent credit, owned house for (3) years, both of you are 75 years old.  There is a whole lot more that is considered.  I'm just gonna hit a few highlights that could be problems areas.

Here are other things that are reviewed for a refinance:

THE HOUSE -

  • what is the loan (current mortgage) to the market value of the home - i.e. what is it gonna appraise for -  How much equity do you have in the house now?
  • is it in good repair especially any big maintenance items
  • An appraisal will have to be done - and you pay for it.

The BORROWER(S)

  • credit score - the better the score; the better the interest rate
  • current income - has to support the refi payment amount after considering expenses - mortgage can't be more than a certain % of your income.
  • current expenses (all of them) - debt to income ratio

Things change in (3) years so it is the current state of the home and your finances that the lender will be looking at for consideration.

 

I am gonna ask the moderators to move your post & my reply here from this General Help Board to the Housing board so that your post will be seen in the category where others may want to reply.

 

It's Always Something . . . . Roseanna Roseannadanna
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I put out feelers to refinance.  I had this person calling 3 or 4 times a day and I finally gave her the information she was asking about.  I have been in my home since 1993.  I had to refinance in 2007 to pay for my husband's medical bills.  My home is worth $280,000 and I owe $85,000.  I have a 6.99 percent interest rate and still owe 15.5 years.  I was looking to refinance at a lower rate for 15 years.  My credit score is 800.  This is the information I gave her along with my age, 75 years old.  After calling 3 or 4 times a day, as soon as I gave her this information over 2 weeks ago, no more calls.

Super Contributor

@LindaC522725 It sounds like you may have been working with a mortgage broker. Generally, bank or credit union employees do not cold call more than once or twice. They are working off customer lists of hundreds or more. At any rate, a mortgage broker will focus on on the larger refinancing cases (i.e., a few hundred thousand or more, etc.) since those cases will provide a greater income (finder fee, commission, etc.). Using 1% as an example, your refi will provide a mortgage broker $850 (1% of $85,000). So, that mortgage broker may be working on larger refi's of $200,000 or more. Generally, bank and credit union loan folks are paid a salary and may earn an incentive for each loan application. I suggest that you explore a number of approaches such as banks (brick and mortar as well as online), credit unions, mortgage brokers, life insurance companies, etc. Also, take a look at Home Equity Lines of Credit (HELOC) as opposed to a mortgage. You may find the HELOC with very low introductory rates (2% range) for a certain period of time. Thereafter, the rate may increase based on a formula. You need to review all the moving parts. This is where a bank or credit union employee may be very helpful as opposed to a online bank. Also, you want to obtain manageable payback terms. Look for 10 to 20 years with no penalties for paying early. Lastly, folks with cash value life insurance sometimes forget that they can borrow money from an insurance company at liw contractual interest rates. For example, if you purchased a cash value type of policy back in your 30's or thereabouts, you may find a loan feature at a very low rate. Hope all this helps.

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