Retirees Still Face Years of Mortgage Payments

Fewer retirees own their home free and clear, as 32 percent of homeowners ages 60 to 70 say it will take them more than another eight years to pay off their mortgage, according to American Financing’s Retirement and Mortgages survey.

However, many say they intend to age in place, with 64 percent indicating they plan to remain in their current home. Seventy-one percent say they would prefer to make home renovations rather than move, even if a health issue affected their mobility and comfort at home. However, 48 percent say they are unsure what they would do if their retirement funds ran low, making modifications questionable?

“With so many older Americans carrying mortgage debt with them later in life—and many expressing uncertainty about their financial future—this could very well prove to be an increasing concern among retirees,” according to American Financing’s report. It highlights several options for retirees, such as refinancing a mortgage or reverse mortgages. The report showed that only 19 percent of respondents knew what a reverse mortgage is.

Source: “Does Your Mortgage Retire With You?” American Financing (2018)

Older Americans Face Challenges When Aging

Freddie Mac released today its Insight for February, which outlines challenges, costs and potential solutions of addressing the desire of older Americans to age in place. Survey data shows half of all 55+ Americans and three quarters of 75+ Americans are impacted by at least one physical functional limitation, heightening the growing demand for retrofitting.

Insight Highlights: 1)The Freddie Mac survey of the 55+ population indicates almost two-thirds of homeowners — 43 million people — wish to age in place. 2)Two-thirds of survey participants report their homes are not accessible for someone with arthritis, limited mobility, or in a wheelchair. 3)About 1.5 million older households today need some retrofitting, and that number rises to 2.0 million per year by 2030. 4)If a major retrofit is required, it can be 40 times more expensive than a simple retrofit such as adding some grab bars and new drawer handles. Retrofitting may be too expensive for many of those who wish to age in place.