Everyone knows there are certain factors that will always affect your mortgage: the market, banks and credit scores. What you might not know is that your age can affect your mortgage as well. Younger home buyers usually have more debt and less income than older home buyers while older home buyers may wish to pay off their home faster. You should consider your age bracket and plan your mortgage accordingly.
Younger buyers often need to get creative about financing, and many do not have a 20 percent down payment to make. Many middle aged homebuyers find themselves upgrading homes, which can be a unique transaction that often involves a real estate exchange. Meanwhile, a retired borrower is often on a fixed income and this can make some banks hesitant to lend money. Some retirees may need to sell their old home to purchase a new home or downsize their plans to meet their retirement goals.