It is assumed that people approaching retirement would have their mortgages nearly or completely paid off. Yet, when we look at the data, the number of mortgage holders that are at least 65 years old is close to ten million. The reasons for having a mortgage at this age can vary, but the data is still troublesome. Most of these homeowners are concentrated around LA and Miami, which suggests that these homes may have been purchased for retirement. Another interesting parameter shows that these houses have smaller value than comparable homes owned by population as a whole.
Key Takeaways:
- Once upon a time it was the norm to pay off mortgages by middle age. Today’s 60+ homeowner though is likely, at nearly 20% across the U.S., to still have a mortgage to pay off.
- The statistic stands, despite the fact that this age group tends to have fewer home-living costs and own less valuable homes.
- Clusters of these still indebted homeowners can most particularly be found in Miami and Sacramento, California.
“Typically, the homes owned by those 65 and older are worth less than those owned by the general population.”
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