Age-old wisdom instructs that a home is a good investment for Americans of any age.
But what if you are retired and still paying it off?
More Americans are entering retirement with mortgaged homes, and the average balance of those loans is rising.
The share of Americans ages 75 and over who are carrying mortgage debt has risen steadily for decades, according to the federal Survey of Consumer Finances: from 5% in 1995 to a historic high of 25% in 2022.
The amount those homeowners owe has risen apace, from a median $14,000 in 1995 to $102,000 in 2022.
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Home values have risen dramatically, as well, which means retirees are wealthier now than two or three decades ago.
Mortgage debt in retirement can be a trap
But retirement researchers warn that mortgage debt in retirement can be a trap.
A recent study, published by the Michigan Retirement and Disability Research Center at the University of Michigan, found that the typical retiree with a mortgage has insufficient assets to cover their mortgage debt.
