Alrighty, let’s get this party started. Let’s jazz up this info a bit and give it some verve, yeah? Alright, here we go!
—
Hey there! Can you believe this? Older homebuyers are getting the short end of the stick more often than their young and naive counterparts when it comes to securing a mortgage.
That’s right, folks. This surprising piece of insight is as per the latest research conducted by the dignified folks over at the Center for Retirement Research at Boston College. And they are not talking out of thin air – their analysis is backed by a solidly academic study led by the brainy Natee Amornsiripanitch, an economist at the Federal Reserve Bank of Philly.
—
## **So what does the data tell us, my friend?**
Well, Natee got his hands dirty with the data of five million rate-and-term refinance applications (the old switcheroo where homeowners replace their current mortgage with a better deal) submitted by individual borrowers between 2018 and 2020. As the age of the applicants increased, so did their mortgage rejection rates – across all lenders and mortgage products.
Call it what you want – the handwork of the grizzled time lord or cosmic bad luck – but the numbers are plain to see:
* Our seasoned lot of homebuyers between the ages of 60 and 69 are 1.54 percentage points more likely to face rejection than those fresh-faced fellows between 18 and 24.
* And it gets rougher as you climb the age ladder – applicants over 70 years old are denied mortgages a staggering 2.7 percentage points more often.
* The cherry on this sad cake is this – the total mortgage rejection rate for all age groups stands at 17.5%.
And – get this – older men often have it worse than older women! The plot thickens, huh?
## **And what do the experts say, you ask?**
According to our data wrangler Amornsiripanitch, the reasons are multi-fold. Older folks have a higher probability of kicking the bucket before the loan matures, which could either lead to early repayment by the estate or even escalate to foreclosure.
Might seem like age discrimination at first glance, but wait! The relationship between the age and mortgage rejection isn’t as simple as A leads to B!
While the law usually keeps lenders in check from using age as the deciding factor during credit evaluation, certain circumstances do allow them to factor age into their considerations, according to the wise folks at the Center for Retirement Research. Hence, don’t jump to conclusions and start pointing fingers at lenders for breaching anti-discrimination laws.
## **Looking for some handy tips?**
Fear not! There are practical strategies that can help would-be homebuyers give their mortgage applications that much-needed shot in the arm. Kick things off by tackling your existing debt and keeping an eagle eye on that credit score.
—
What’s more? You can find actionable advice on coping with high mortgage rates, a comprehensive guide on navigating home buying amidst fluctuating mortgage rates, and get the lowdown on whether those alluring specialty mortgage products with lower rates and fees are really safe (or a ticking time bomb) – all that and more on Money!