Around 40% of U.S. homeowners own their homes outright with no mortgage, a record high, according to recent 2024 and 2025 data from ResiClub and the U.S. Census Bureau. This number has grown steadily from about 32.8% in 2010, driven largely by demographics, as more older Americans (especially those 65+) pay off their loans, and by an increase in all-cash purchases.
Share of homes that are mortgage-free, 2024
D.C. A record 40.3% of U.S. homes are now owned outright, according to the latest Census Bureau data.
18% of homeowners under age 44 have paid off their mortgage (link provided)
According to Fortune, citing a recently published Goldman Sachs note, the share of U.S. homeowners without a mortgage rose from 33% in 2010 to 40% in 2023. Assuming there are 86 million homes nationwide, the outlet estimates more than 30 million are now owned free and clear.
Federal Reserve data shows that about 23% of Americans have no debt.
Only 37% of retirees are debt-free, with credit card balances the most common form of debt retirees hold. Some debt gives you financial flexibility and lets your assets grow faster, but other debt drains your finances.
About 35 million U.S. households owned their places outright without a monthly mortgage as of 2024, according to the Census Bureau. Some 900,000 loans were paid off in 2024, with more loans paid in full in Vermont and New Mexico than anywhere else.
As homeowners stay in their properties longer, full payoff becomes more common. Among homeowners age 65 and older, nearly two-thirds now own their homes outright. That's a meaningful shift compared to previous decades, and a key reason the share of mortgage-free homeowners keeps climbing nationwide.
For those nearing retirement age, though, Orman offers different advice: If you're in your forever home, pay off your mortgage by the time you retire. Considering that baby boomers own 38% of America's housing stock—and more than half plan to never sell—is an important caveat.
The 3-7-3 Rule in mortgages isn't a loan type but a federal timeline from the TILA-RESPA Integrated Disclosure (TRID) rule, ensuring borrower protection by mandating disclosures within 3 business days of application, a 7-business-day wait between the initial Loan Estimate and closing, and another 3-day wait if significant changes (like APR) occur, giving borrowers time to review costs before committing to a loan.
40.3% of U.S. homeowners now own their homes mortgage-free. Up from 39.8% in 2023. Up from 32.8% in 2010.
In 1998, 26% of Americans ages 65-74 held home-secured debt such as mortgages, yet by 2022, that grew to 32.2%. 1 This trend is particularly pronounced among those ages 75 and up, with 27.6% holding home-secured debt in 2022, up from 11.6% in 1998.
64% of Americans own real estate. 35% of the American population does not own their own homes. Homeownership rates have increased to nearly 65% in the US since the 1940s.
You generally need a credit score of at least 620 to qualify for a conventional mortgage, though every lender is different. FHA loans, which are backed by the federal government, may be an option for individuals with credit scores as low as 500.
According to Census Bureau data, while approximately 63% of homeowners aged 65 and over have fully paid off their homes, less than 28% of working-age homeowners (under 65) have done so.
“Paying off your mortgage early seems impossible but it is completely doable and people do it all the time, but how can you do it and why would you want to put in the extra effort? Paying off your mortgage early will rev up your wealth building.”
While older models of credit scores used to go as high as 900, you can no longer achieve a 900 credit score. The highest score you can receive today is 850.
Pay your bills on time
Prioritize and schedule your monthly payments, making sure to pay at least the minimum payment on time every month on all your accounts. Try to pay more than what's due whenever possible. This helps to pay down debt faster, save on interest expense and may improve your credit score.
Building Credit History: If you use your credit card responsibly, paying bills on time can help build and improve your credit score. This can be beneficial if you're looking to apply for a mortgage, car loan, or even a better credit card down the line.