Are Mortgage Companies allowed to give an Adjustable Rate Mortgage(ARM) to lenders of a certain age?
ewushi asked:
I understand that some law prohibits mortgage lenders from giving ARM to people over certain age. I am 54 years old and I am struggling with this rate now. Someone told me I could use this fact to persuade my lenders to reduce my interest rate, or to move me to a fixed rate. Is this true?
I understand that some law prohibits mortgage lenders from giving ARM to people over certain age. I am 54 years old and I am struggling with this rate now. Someone told me I could use this fact to persuade my lenders to reduce my interest rate, or to move me to a fixed rate. Is this true?
what law requires that lenders violate the fair housing act?
i wouldn’t think that they could discriminate on the basis of age for ANY reason. it is illegal.
With the exception of having a minimum age requirement (that is you have to be of legal age to enter in to contracts), age is never a factor in a mortgage lending decision.
Whether or not you can get a fixed rate also has nothing to do with your age.
You can talk to your current lender about converting to a fixed rate program, but there are no guarantees about what they can do for you.
You can always refinance with another lender provided you qualify and fortunately fixed rates are still relatively low.
Good luck resolving your rate problem. Shop well for your new loan.
I have never heard of such a law but there are laws that protect against discrimination such as age, race, gender, etc. Whomever told you this is incorrect. what it comes down to is an ethical question, is an arm product the best program a mortgage professional can put you in? Probably not. While an arm or interest only program will lower your payments for a period of time, you must consider two things, one you will pay closing costs for the initial closing and then again in 2-5 years depending on the program, so how much do you really save. Also, your not paying down the principle, so when you have to refinance again, you could be in a pickle. I would consult a mortgage professional that will evaluate your entire financial situation and put you in a program that suits your situation. Good Luck