How old is too old to buy a first house?

[lunamama]

I am concerned that by the time we have 20% down and a healthy emergency fund, we will be too old to pay it off before retirement. I don't think we will have it for a few more years. I am 32 and my husband is 35. What do you think?

[leavemealone]

I don't think anyone is ever "too old". You can get a shorter mortgage (ex: 15 years instead of 30 years) or just pay extra each month and pay it off earlier. I don't think I would let age deter me from buying a house especially in my mid 30's. OK, maybe if I was 95 years old I might rethink it, but not at your age.

[Denvergirlie]

36 and 40 here respectively, we are saving for proper downpayment ourselves. I don't feel that age has anything to do with buying a house. Of course we plan to pay it off in 7-10 years, so we will be fairly agressive in our mortage pay down.

[mnnice]

I can't believe that most people that would have a 20% downpayment, no other debt, and a solid emergency fund would need thirty years to pay off a mortgage.

We purchased our first home in 1998 with 5% down, other debt and so-so emergency fund. We paid off our mortgage less than nine year later.

I wouldn't worry about it too much.

[Logan's Mom]

if there is an age limit then i'm in trouble. 39 and just about ready, dh is 40.

[tinuviel_k]

We worry about this, too.

The minimum price for a decent house in my area of the size and location we need is about $250,000.
*We need to have a minimum of $10K for a down payment (not even 5% of the mortgage.)
*I want to have 3-6 months of living expenses saved before investing in a house, which is $12K-24K with the cost of our mortgage factored in.
*I'd like to have an accessible $3K-5K in the bank for the emergency or urgent home repairs that will surely come up in the first several years, or for necessary remodeling, or...

So say a total of $25K minimum or $40K ideally to get us in a comfortable and responsible financial state for buying a home.

If we are super frugal and good we can afford the minimum in two years and the ideal amount of funds in about four years. For the housing prices in this area and on our salary we will only be able to go with a 30 year mortgage.

Aaron is 35 and I am 30.We do NOT want to have to worry about making a mortgage payment after retirement age! I don't want to be a slave to my house in my old age. At that point we want to be set for housing (though lord knows what property taxes will look like by then: shudder) with no payments.
But that means we need to buy a house SOON, within the next couple of years.

[Poddi]

My parents bought their first house when my dad was 57 and mom was 51 (new immigrants). Now the house is paid off, took 14 years or so. My mom's not retired yet. So it definitely can be done. I say you guys have loads of time yet.

[velochic]

There isn't a maximum age. And I wouldn't worry too much about it taking the full 30 years. You will, over the course of the loan, most likely be able to pay a few hundred dollars extra toward the principle either regularly or here and there. You'll be surprised how just a few extra thousand over the course of the loan will cut it down by years.

You are doing it the RIGHT way. Don't let anyone tell you otherwise. Mortgators like you will be what helps put this economy back on track.

[Magpie1972]

We are both 36, and just buying our first (and only) home, unless something happens to change our circumstances.

We are planning to pay extra along the way, but if we take it to the limit, plan on being okay either way.

[HeatherAtHome]

Another thing to keep in mind is to buy a smaller/more affordable home instead of the max you're allowed to borrow.

[K1329]

Definately not too old. As others have posted, you can easily pay it off early by adding a little extra here and there. Also, look at the alternative. Rents increase with time, I can't imagine what rental prices will be in 30 years. But your house payment will be locked in. What seems pricey now will seem super cheap in 30 years! Our house note was more than the average rental when we bought. It now is about 300.00 less than what we would pay renting. Plus, even if you sell before your mortgage is paid off, more than likely, if you own for awhile before selling, you'll end up with some money. If you rent, when you move you'll have nothing to show for it. For my family, buying has been one of our best investments. Good luck!

ETA: I also agree with the above poster who recommended buying an affordable house - not necessarily the most expensive one you qualify for. You don't want too much of your income to go to housing. Leave some money for extras - unexpected repairs, the occasional vacation, etc. IME, you won't regret buying a home. Best of luck!

[Delicateflower]

Originally Posted by mnnice

I can't believe that most people that would have a 20% downpayment, no other debt, and a solid emergency fund would need thirty years to pay off a mortgage.

It would depend on where they live and how much they earn. For us, in COL area with a good income, we'll pay it off early. But if housing is expensive and you have lots of medical expenses, child in private school or childcare, and you don't make much.

Also, if you can earn more from investments than you're paying in interest it's better not to pay it off

[lil_earthmomma]

I don't think age has much to do with it really. My parents just became mortgage free at 55, because they sold the home we grew up in and bought a condo that was worth about half of what the house was worth.

You don't have to live in the same house forever, and that would probably be impractical. If you downsize in the far future, you will probably come out ahead? Right? Am I missing something here?

[mnnice]

Originally Posted by Delicateflower

It would depend on where they live and how much they earn. For us, in COL area with a good income, we'll pay it off early. But if housing is expensive and you have lots of medical expenses, child in private school or childcare, and you don't make much.

Also, if you can earn more from investments than you're paying in interest it's better not to pay it off

I think all bets are off if you have a special needs child or children or adults dealing with disability too. I have my own personal biasis that make private school not a choice for my family so I tend to forget about that option and expense.

My parent's never owned a home until they where 44 and 50 (and I had left for college), but due to some unique circumstances they also never had a mortgage either and I am sure they are glad they decided to build and own when they did.

[rainyday]

Also remember that even if you retire and still have a couple of years left on a mortgage, chances are good that the mortgage payment (if it was a fixed rate/payment) will seem much smaller at that time. For example, I have a good friend who bought his house almost 30 years ago. They could barely afford their house then - had to really scrimp to make it. Now it's almost 30 years later, and the payment is truly laughably small - like $300 a month or something. There's no way they could rent a two-bedroom apartment (which would be smaller than their house) for even three times that.

[annekevdbroek]

Originally Posted by mnnice

I can't believe that most people that would have a 20% downpayment, no other debt, and a solid emergency fund would need thirty years to pay off a mortgage.

We purchased our first home in 1998 with 5% down, other debt and so-so emergency fund. We paid off our mortgage less than nine year later.

I wouldn't worry about it too much.

Well, it depends on the area you live in and yoru income. We are in a very high COL - houses *start* around 500k here. Good luck finding much of anything under that. Its very difficult to pay off that amount of money, even on a good income, in 9 years. We are aiming for 20ish on our 30 year mortgage.

To the OP, I don't think there is a maximum age. Also, remember that you are a building equity. It may be at retirment you sell the house, buy another paid in full (that is smaller or whatever). Also, relative to your income your mortgage will 'shrink' as it becomes a smaller part of your income over the years. I hope that makes sense - the house payment basically becomes more affordable as your income increaess.

[JustKiya]

My mom brought her first house at 51.

It sounds like your real question is - how can we buy a house and have it paid off by the time we retire - and that ties into affordability. Buy a cheap house, get a 15 year mortgage, and consistently pay extra on the mortgage - throw the maximum amount of money that you can at it.

Good luck!

[mnnice]

Originally Posted by annekevdbroek

Well, it depends on the area you live in and yoru income. We are in a very high COL - houses *start* around 500k here. Good luck finding much of anything under that. Its very difficult to pay off that amount of money, even on a good income, in 9 years. We are aiming for 20ish on our 30 year mortgage.

I still think that if you have income qualify for a million dollar home and buy a $500,000 you are still in about the same boat as a family that qualifies for a $300,000 home and buys a $150,000 home. It is going to be harder to have a $330,000 income in a high COL area than it is to figure out how to make $100,000 in a average COL area. The principles you need to use are the same. That's different that I think the are equally feasible.

FTR it wasn't easy and it required a great deal of discipline. We also didn't have a full time SAHP until after we had paid off the house which significant portion of folks on this board would not be okay with. It was rewarding and something I'm very glad we did.

My point was that anyone that could have a good emergency fund, no other debt, and a 20% down payment would acquire that discipline in the process.