The number of seniors still making house payments into retirement has grown following the recession. Some baby boomers are finding they didn’t save enough for retirement, some may have lost their jobs prior to wanting to retire, some may have overpaid for their homes during the housing boom, some took out home equity lines of credit or dipped into their retirement funds prior to retirement. Whatever the case, a growing number are still stuck with a house payment into retire.
The Consumer Financial Protection Bureau’s Office for Older Americans says 30 percent of home owners 65 and older – or 6.5 million home owners — were paying a mortgage in 2013. The number of people 75 and older who still have a mortgage climbed from 8 percent in 2001 to 21 percent in 2011, according to a Federal Reserve study.
The median mortgage held by Americans 65 and older has more than doubled since 2001, blooming from $43,400 to $88,000, according to the CFPB.
In some cases, some older Americans are finding they just can’t keep up with their house payments in retirement, and some have lost their homes to foreclosure.
Source: “House Payments Burden More Older Americans,” The Associated Press 6/3/15