Do older homeowners pay more for mortgages?

Amornsiripanitch, Natee. “Do older homeowners pay more for mortgages?”. Issue in Brief 23-6, Chestnut Hill, Mass.: Center for Retirement Research at Boston College, March 2023. http://hdl.handle.net/2345/bc-ir:109760.
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Abstract

The brief's key findings are: (1) A prior brief found that older mortgage applicants are more likely to be denied. The focus here is whether older homeowners pay more on loans. (2) The analysis controls for borrowers' credit risk using the fees that Fannie Mae and Freddie Mac charge lenders to insure against default. (3) The results show that older homebuyers paid higher interest rates, but only up to 8 basis points more on a base cost of 391 basis points. (4) One possible explanation for the interest rate gap is that older borrowers might do less comparison shopping for lower rates.

Title
Do older homeowners pay more for mortgages?
Author
Amornsiripanitch, Natee
Center
Center for Retirement Research
Genre
report
Date Issued
March 2023
Publisher
Center for Retirement Research at Boston College
Series Title
Issue in Brief
Series Number
23-6
Persistent Link
http://hdl.handle.net/2345/bc-ir:109760
Use Restrictions
These materials are made available for use in research, teaching and private study, pursuant to U.S. Copyright Law. The user must assume full responsibility for any use of the materials, including but not limited to, infringement of copyright and publication rights of reproduced materials. Any materials used for academic research or otherwise should be fully credited with the source. The publisher or original authors may retain copyright to the materials.
Subject
Financing Retirement

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