What percentage of people never pay off their mortgage?
By the numbers: The share of mortgage-free U.S. homes has jumped from 34.3% to 39.3% in the past decade, per the census data. Between the lines: There can be a psychological perk to paying off a loan early, but according to some personal finance experts, it could be smarter to invest that money instead.
40% of Americans Pay Off Their House — Are They Doing Better Financially? For most Americans, a home mortgage is the biggest financial obligation they will ever have. A traditional mortgage spans 30 years and is often in the hundreds of thousands of dollars, so the interest charges can be enormous.
But with nearly two-thirds of retirement-age Americans having paid off their mortgages, it means that the average age they have gotten rid of that debt is likely in their early 60s. Stats from 538.com, for example, suggest the age is around 63.
In 2022, researchers found that just over 40 percent of homeowners older than 64 had a mortgage, a jump from roughly 25 percent a generation ago. Ultralow mortgage rates were a big driver of the increase, said Jennifer Molinsky, project director of the center's housing and aging society program.
Almost 40% of US homeowners own their homes outright as of 2022—many of them baby boomers who refinanced when rates were low.
The number of mortgage-free homes in the U.S. soared by 7.9 million from 2012 to 2022, reaching a total of 33.3 million, per the report.
Around 23% of Americans are debt free, according to the most recent data available from the Federal Reserve. That figure factors in every type of debt, from credit card balances and student loans to mortgages, car loans and more. The exact definition of debt free can vary, though, depending on whom you ask.
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.
| Generation | Average total debt (2023) | Average total debt (2022) |
|---|---|---|
| Millenial (27-42) | $125,047 | $115,784 |
| Gen X (43-57) | $157,556 | $154,658 |
| Baby Boomer (58-77) | $94,880 | $96,087 |
| Silent Generation (78+) | $38,600 | $39,345 |
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.
How many people over 70 still 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.
But when I started to look deeper at the figures and thought about how expensive housing has gotten and how many people can't afford a home until later in life, the numbers started to make a lot of sense.” Channel found that about 9.6 million homeowners 65 and older have a mortgage, while more than 16 million ( ...
Average Retirement Debt: The Numbers
More than half say they intend to enter retirement debt free, but only one-quarter of retired Boomers actually are debt free.
The national homeownership rate is 66%, which means that 66% of households own their home while 34% rent. This rate has held steady over the past year.
The U.S. median home price was $412,000 in September 2023, according to Redfin. That's an increase of 2% over last year even though there were more than 300,000 fewer homes on the market.
The typical U.S. homeowner spends 12.3 years in their home. However, the average length of homeownership has changed over the years and varies when considering factors such as region, age of the home, and more.
The benefits of paying off your mortgage
Being mortgage-free can make it easier to downsize in other ways – such as going part time – and usually makes it cheaper and easier to buy and sell your home. Generally, a smaller mortgage gives you greater freedom and security.
The collapse of the housing market during the Great Recession displaced close to 10 million Americans and ruined the American Dream for many. The growing wealth gap in the United States exacerbated by the 2020 economic crisis has placed the American Dream out of reach for a large part of American society.
Second home ownership statistics show that 6.02% of individuals aged 30–49 own a second home. This age group has a higher second home ownership percentage than those aged 18–29 and 50–64, whose rates are 4.68% and 4.13%, respectively.
What is the average credit score? The average FICO credit score in the US is 717, according to the latest FICO data. The average VantageScore is 701 as of January 2024. Credit scores, which are like a grade for your borrowing history, fall in the range of 300 to 850.
What's the average credit score?
Most consumers have credit scores that fall between 600 and 750. In 2022, the average FICO® Score☉ in the U.S. reached 714. Achieving a good credit score can help you qualify for a credit card or loan with a lower interest rate and better terms.
According to a 2019 Experian study, men carry more debt than women across nearly all categories, including credit card debt — the study found that men have $125 more in credit card debt than women on average.
The short answer is yes, $500,000 is enough for many retirees. The question is how that will work out for you. With an income source like Social Security, modes spending, and a bit of good luck, this is feasible. And when two people in your household get Social Security or pension income, it's even easier.
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.
Key statistics on seniors and mortgages
Baby boomers carry an average of $190,441 in mortgage debt — the second-lowest balance, behind the Silent Generation, according to 2023 data from Experian.
