The short answer is maybe. It’s illegal to reject someone for a loan simply because of their age. However, there are factors related to age that might affect your eligibility, including…
Insufficient collateral. This happens when the appraised value comes in low compared with the requested loan amount. This can occur when someone has lived in a home for a long time without updating or maintaining it well.
Insufficient income. Retired borrowers usually have a fixed income, which can be great for getting a loan. However, if it’s not enough to cover the loan payments, older borrowers are unlikely to be able to increase their income.
Insufficient lifespan. Having a borrower die could be “costly to the lender” with the likelihood of the loan being paid off early or entering foreclosure. While a lender isn’t supposed to disqualify a borrower based on age, if their actuarial tables indicate that you’re unlikely to pay back the loan, they can claim undue risk.
To improve the chances of getting a refinance, older applicants should talk with a mortgage consultant about their qualifications. Also consider having younger people show the home to the appraiser. It’s not supposed to matter, but you never know. Call me for the names of good local mortgage brokers. ~Valerie, (718) 399-3320