Seniority Tax Can Raise Refinance Costs | Mortgage Rates may affect your Buying Power. The Real Estate Market is Cooling. Adjustable Rate Mortgage (ARM) as an Option.

A watchdog report found ~80% of US refinance applicants age 55+ paid above the best market rates, averaging ~$2.4K extra yearly versus younger borrowers.
Over an avg. 8-yr period, that hidden markup totaled ~$19K, and a new 30-yr reset could push lifetime added costs above $52K.
In a sluggish US housing market, lenders leaned harder on refinancing revenue, while older owners with strong equity became prime targets for cash-out pitches.
For older Americans on fixed incomes, an extra ~$2.4K in yearly interest can strain retirement budgets and reduce equity that might otherwise support heirs.
Refinancing can still help when lowering costs or covering medical or home updates, but experts urged checking senders and comparing at least three lenders.