Business & Finance mortgage

Can a Mortgage Company Discriminate Because of Age?

    Minors

    • The ECOA was designed to make it easier for people of all ages to obtain credit. However, the part of the act that prevents age discrimination includes a special stipulation that you are only protected from age discrimination if you have "the capacity to contract." You cannot sign a contract until you have reached the age of maturity as defined by your state; in most states you reach this age when you turn 18. Since mortgages are binding contracts, you cannot take out a mortgage until you reach the age at which you have the capacity to contract .

    Reverse Mortgages

    • When you take out a traditional mortgage, you receive a lump sum of money and your lender secures a lien against your home that remains in place until you have paid off the debt. When you take out a reverse mortgage, you start off with 100 percent equity in your home but you receive monthly income payments from your lender; these payments gradually reduce the equity that you have in your home. Reverse mortgages are designed to provide retirees with supplemental income, and these federal- and state-backed loans are only available to people aged 62 and older.

    Life Expectancy

    • Logic suggests that you are unlikely to finish paying off a 30-year loan during your lifetime if take out that loan when you are 95 years old. However, the obligation to pay back the loan does not end when you die. Upon your death, the responsibility to repay the loan falls to your estate. Your heirs and your estate executor cannot sell or transfer ownership of your home until the loan has been repaid. Your lender can foreclose on the home if your estate representatives fail to settle the debt.

    Considerations

    • If you are an older person, you can benefit from the ECOA anti-discrimination rules because you can extract equity in your home just as easily as your younger neighbors can. However, some lenders attempt to coerce elderly people into taking out unnecessary home loans that include hefty upfront costs and significantly monthly payments. Most states have elderly abuse laws that enable you, your friends and family members to report lenders that engage in predatory lending. These rules ensure that lenders do not take advantage of the federal laws that are designed to make credit accessible to people who need and want to borrow.

SHARE
RELATED POSTS on "Business & Finance"
Suze Orman Should You Pay Down Your Mortgage
Suze Orman Should You Pay Down Your Mortgage
Does Your Credit Score Qualify For Mortgage?
Does Your Credit Score Qualify For Mortgage?
How to Get Best Easy Loans Mortgage of Refinance for Home Loan
How to Get Best Easy Loans Mortgage of Refinance for Home Loan
What's the Right Mortgage For You?
What's the Right Mortgage For You?
Looking at How a VA Loan Works
Looking at How a VA Loan Works
Buying Your First Home – Top Tips
Buying Your First Home – Top Tips
Foreclosure Rights of Your Mortgage Company
Foreclosure Rights of Your Mortgage Company
Going Down the Boozer with the Boss Drinking for Success
Going Down the Boozer with the Boss Drinking for Success
How To Choose The Right Mortgage Broker Wisconsin?
How To Choose The Right Mortgage Broker Wisconsin?
What Does it Mean to Refinance Your Mortgage?
What Does it Mean to Refinance Your Mortgage?
The Right to Rescind Your Mortgage - a Powerful Tool for Negotiating a Loan Modification
The Right to Rescind Your Mortgage - a Powerful Tool for Negotiating a Loan Modification
Sub Prime Mortgage Cheat Sheet
Sub Prime Mortgage Cheat Sheet
Brandon Colker Is An Expert Mortgage Adviser
Brandon Colker Is An Expert Mortgage Adviser
How to Find Out Who Holds the Mortgage on a House
How to Find Out Who Holds the Mortgage on a House
Bad Credit Mortgages - They are not hard to get from the lenders
Bad Credit Mortgages - They are not hard to get from the lenders
Reverse Mortgage Tips 2009
Reverse Mortgage Tips 2009
Are Mortgage Rates Today Influencing Your Decision To Buy?
Are Mortgage Rates Today Influencing Your Decision To Buy?
Big Challenges Ahead For Mortgage Lead Generation
Big Challenges Ahead For Mortgage Lead Generation
Large Mortgage Choice Greater Than Ever
Large Mortgage Choice Greater Than Ever
Helpful Insurance Advice for First-time Motorcyclists
Helpful Insurance Advice for First-time Motorcyclists

Leave Your Reply

*