More than 10 million homeowners over 65 years old have mortgage debt. Home mortgage loans typically account for the largest portion of debt on most Americans' credit reports, with balances averaging $150,000.
More Americans are entering retirement with mortgaged homes, and the average balance of those loans is rising. The share of Americans ages 75 and over who are carrying mortgage debt has risen steadily for decades, according to the federal Survey of Consumer Finances: from 5% in 1995 to a historic high of 25% in 2022.
There is no specific age to pay off your mortgage, but a common rule of thumb is to be debt-free by your early to mid-60s.
According to the Housing Vacancy Survey, the home- ownership rate among households age 65 and over was 79.1 percent in 2022, down just slightly from the 79.5 percent witnessed in 2021 and a full percentage point lower than the record high of 81.1 percent in both 2004 and 2012.
Nearly 40% of retirees, for instance, have a mortgage. And the average mortgage balance is over $100,000, which translates to average annual mortgage payments of $10,000 that will last at least 12 years or more.
5% of older adults (aged 65+) live in a nursing home. Of these, about 50%of nursing home residents are 85 years old or older, 35% are between the ages of 75 and 84, and 15% are between 65 and 74 years of age. Most nursing home residents are admitted with more than one condition, most with three or more conditions.
Absolutely. The Equal Credit Opportunity Act's protections extend to your mortgage term. Mortgage lenders can't deny you a specific loan term on the basis of age.
Older homeowners aged 60-plus years like their homes, many view the equity in those homes as a financial reserve, and a significant share are confident of their overall retirement financial plan and expect to age in place. Importantly, the homeownership rate among this age group is nearly 80%.
The average mortgage term in the U.S. is 30 years, though many homeowners refinance or move before completing this term. Homeowners typically stay in their homes for about eight years on average. A 30-year mortgage helps keep monthly payments more affordable for borrowers.
In 2022, 66.8% of older households had debt. Overall, the older the head of the household is the less likely the household is to have debt. In 2022 in families in which the head was 55-64, 77.2% had debt. That drops to 64.8% when the head is 65-74 and 53.4 when the head is 75 or older.
The table below shows the percentage of homes without a mortgage compared to the total number of available homes on record from 2010 to 2022. 2 These figures show that the percentage of mortgage-free homes has increased steadily, from 32.78% in 2010 to 39.28% in 2022.
20 percent of adults ages 50 and over have no retirement savings at all. 61 percent are worried they will not have enough money to support themselves in retirement. Perhaps most startling, only 40 percent of men who are regularly saving for retirement believe they are saving enough. For women the number is 30 percent.
But debt more than quadrupled in households headed by people aged 65 to 74 in that period (from $10,150 to $45,000 per household, on average), and for those 75 and up it has increased sevenfold (from just under $5,000 to $36,000).
You want to save on interest payments: Depending on a home loan's size, interest rate, and term, the interest can cost hundreds of thousands of dollars over the long haul. Paying off your mortgage early frees up that future money for other uses.
According to a recent report from the Joint Center for Housing Studies of Harvard University, over 40% of homeowners over 64 had a mortgage in retirement.
Buying a home after 60 can make sense if you have sufficient monthly income and find an affordable home. In addition, if you're physically capable of maintaining the home or can pay for extra help, homeownership won't become burdensome.
Most seniors first enter their programs well after reaching the minimum residency age. In fact, the most common age for new residents falls somewhere between 75 and 84. Still, significant numbers of seniors begin their programs while in their 60s, early 70s, or late 80s.
Nearly half of Americans retiring at 65 risk running out of money, Morningstar finds.
Yes, there are home loans specifically designed for people on Social Security. These include government-backed options like FHA loan, VA loans and specialized products from private lenders. Reverse mortgages are another option, particularly tailored for seniors.
Mortgage debt remains uncommon among homeowners age 65-plus relative to their younger counterparts; in fact, the fraction of homeowners age 65-plus who had a mortgage in 2022 (34 percent) was less than half that of homeowners under age 65 (70 percent) 3.
All of this creates an atmosphere of risk around older borrowers. The upshot is that if you're over the age of 62, you're almost 30% more likely to get rejected for a standard mortgage.
One study distinguishes the young-old (60 to 69), the middle-old (70 to 79), and the very old (80+). Another study's sub-grouping is young-old (65 to 74), middle-old (75 to 84), and oldest-old (85+). A third sub-grouping is young-old (65 to 74), old (74 to 84), and old-old (85+).
Life expectancy for long-term care residents. In studies, median survival after admission to a nursing home ranged from 13.7 months to 2.7 years [17] , while 1-year mortality ranged between 25% to 35% [18,19]. As such, many LTC residents are nearing the end of life. ...
Other seniors may prefer assisted living facilities or nursing homes. If your parents want to remain in their home, evaluate local licensed home care agencies. Discuss your parents' circumstances and ask plenty of questions to ensure the agency is the right fit.