What percentage of retirees have a mortgage?

Asked by: Mr. Thaddeus Rosenbaum  |  Last update: November 13, 2023
Score: 4.9/5 (36 votes)

The survey, "Retirement and Mortgages," by national mortgage banker American Financing, found 44 percent of Americans between the ages of 60 and 70 have a mortgage when they retire, and as many as 17 percent of those surveyed say they may never pay it off.

What percentage of people over 65 still have a mortgage?

“Across these metros, an average of nearly a quarter — 23.74% — of homeowners 65 and older have a mortgage,” the report states. “That's about 5 percentage points higher than the 50-metro average of 18.96%.

What percentage of retired people still have a mortgage?

Across those 50 metros, an average of about 19% of homeowners who are 65 and older still have a mortgage. We also found that homes owned by people in this age group tend to be less valuable than those owned by the general population — and that their monthly housing costs tend to be lower.

Do most retirees have their homes paid off?

While most Americans expect to have their mortgage paid off by retirement, more than one in five of those individuals are still paying off their homes at age 75. Click here to check out 23 other investing statistics from Financially Simple. Want to learn more?

Are most people mortgage free at retirement?

For many retirees, being free of mortgage payments in time for retirement is becoming a thing of the past. The oldest segment of baby boomers—individuals born between 1946 and 1951—are far less likely to have paid off their mortgage prior to retirement, according to TIAA.

Is it OK to Retire With a Mortgage? | Surprising Results

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Should a 70 year old pay off mortgage?

If you're retiring within the next few years and have the cash to pay off your mortgage, it may make sense to do so, particularly if the funds are in a low-interest savings account. Again, this works best for those who have a well-funded retirement account and enough reserve funds for unexpected emergencies.

What age do most people pay their mortgage off?

Will YOU still be paying off your mortgage in old age? One in six face this burden... so how do you retire free from property debt. The average age people expect to get shot of their mortgage is 59, but one in six reckon they will still be paying it off in their retirement years, new research reveals.

How many 70 year olds have a mortgage?

Nationally, a little more than 15 million homeowners 55 to 74 years old don't have a mortgage compared to about 17.7 million who do. For comparison, about 9.6 million homeowners 65 and up have a mortgage, while more than 16 million (16,184,634) don't.

What percentage of people retire without a mortgage?

The survey, "Retirement and Mortgages," by national mortgage banker American Financing, found 44 percent of Americans between the ages of 60 and 70 have a mortgage when they retire, and as many as 17 percent of those surveyed say they may never pay it off.

How much debt does the average retiree have?

According to the report, the average retiree now holds nearly $20,000 in non-mortgage debt, with their debt more than doubling in 2020 due in part to the ongoing COVID-19 pandemic. The average retiree took on an additional $9,779 in debt 2020, increasing their debt by 104%.

Is it smart to have a mortgage in retirement?

Key Takeaways. Carrying a mortgage into retirement allows individuals to tap into an additional stream of income by reinvesting the equity from a home. The other benefit is that mortgage interest is tax-deductible. On the downside, investment returns can be variable while mortgage payment requirements are fixed.

Will a bank give a 70 year old a 30 year mortgage?

Mortgage lenders can't deny you a specific loan term on the basis of age. The loan term you're comfortable with has much more to do with your finances than your age.

How long does the average person keep a mortgage?

The average length of a mortgage is 30 years, but that's not the amount of time that most borrowers will keep the loan. Homeowners only stay in a home for eight years on average, and many refinance their home loans. So most folks will sign up for a 30-year mortgage but keep it for a far shorter time. Why 30 years?

Can a 65 year old get a 30 year mortgage?

Age doesn't matter. Counterintuitive as it may sound, your loan application for a mortgage to be repaid over 30 years looks the same to lenders whether you are 90 years old or 40.

What percentage of homeowners have no mortgage?

Yet no-mortgage owners in California are only 33% of all homeowners – and only four places have a smaller share: D.C. at 24%, Maryland at 28% and Colorado and Utah at 30%.

Is it hard for retirees to get a mortgage?

Retirees who have good credit, sufficient income and assets and not a lot of debt can get a mortgage or home loan. However, the process of obtaining one might look a little different and be a bit tougher.

What is a good monthly retirement income?

But, generally speaking, most experts agree that you will need 70-80% of your pre-retirement income to maintain your standard of living in retirement. For example, if you earned $50,000 per year ($4,167 a month) before retiring, you would need approximately $35,000-$40,000 per year in retirement.

What do most people retire with?

The Federal Reserve's most recent data reveals that the average American has $65,000 in retirement savings. By their retirement age, the average is estimated to be $255,200.

What is a good net worth to retire?

The average retired household has a net worth of more than $1 million. There's no ideal net worth for all retirees, but there are some things to keep in mind when looking at yours, such as potential income streams in retirement.

Do mortgage lenders care about age?

A lender generally can't deny your loan application or charge you higher interest rates or fees because of your age. This rule applies to various types of lenders when they're deciding whether to give credit, such as an auto loan, credit card, mortgage, student loan, or small business loan.

Is it better to pay off a 30-year mortgage in 15 years or get a 15-year mortgage?

A 15-year mortgage costs less in the long run since the total interest payments are less than a 30-year mortgage. The cost of a mortgage is calculated based on an annual interest rate, and since you're borrowing the money for half as long, the total interest paid will likely be half of what you'd pay over 30 years.

Why is it better to pay off your mortgage in 15 years rather than 30?

People with a 15-year term pay more per month than those with a 30-year term. In exchange, they are given a lower interest rate. This means that borrowers with a 15-year term pay their debt in half the time and possibly save thousands of dollars over the life of their mortgage.

Is it better to pay off a house or keep a mortgage?

Compare your mortgage rate to the after-tax rate of return on a low-risk investment with a similar term—such as a high-quality, tax-free municipal bond issued by your home state. If your mortgage rate is higher than the interest rate on an investment asset, you'd be better off paying down the mortgage.

What percentage of Americans have their house paid off?

According to Census Bureau data, over 38 percent of owner-occupied housing units are owned free and clear. For homeowners under age 65, the share of paid-off homes is 26.4 percent.