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The Share of Americans Who Are Mortgage-Free Is at an All-Time High. Almost 40% of US homeowners own their homes outright as of 2022—many of them baby boomers who refinanced when rates were low. Anthony and Emily Stump, with Bo. This article is part of the November 20, 2023 issue of businessweek.
What percentage of Americans are mortgage free? ›
Nearly 40% of U.S. homes are mortgage-free, census shows.
What percentage of Americans pay off their mortgage? ›
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.
How many Americans are debt free except mortgage? ›
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.
How many Americans are behind on their mortgage payment? ›
The share of borrowers who are behind on their mortgages — defined as a homeowner being 90 days or more past due — stands at 3.88% of all loans outstanding, according to the most recent MBA data. Between 1979 and 2023, the delinquency rate averaged 5.25%.
What percent of Americans don't own a house? ›
The 10 states with the lowest homeownership rates
Connecticut | 64.8% |
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Hawaii | 59.2% |
California | 55.3% |
New York | 53.9% |
District of Columbia | 42.3% |
5 more rowsJul 24, 2023
How many people are not paying their mortgage? ›
About five million U.S. households were estimated to be behind on their last month's mortgage repayment in June 2023. Homeowners between 40 and 54 years made up over 1.8 million households late on their payment. Second in rank were roughly 1.5 million homeowners between 25 and 39 years.
What is the average age most Americans become mortgage free? ›
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.
What is the average age that people pay off their mortgage? ›
“Today's first-time buyers are due to pay off their mortgage at 65-years old on average, compared to 53 in 1990 as sky-high house prices force buyers to extend their mortgage term to make their payments more affordable. “Rising mortgage terms mean more of us will still have housing costs in retirement in the future.
What percentage of retirees still have a mortgage? ›
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.
How Many Americans are Living Paycheck to Paycheck? Recent MarketWatch Guides survey results indicate that 66.2% of Americans feel like they're living paycheck to paycheck. Respondents struggling to make ends meet span demographics, including genders, generations and incomes.
What is the #1 debt for American households? ›
What percentage of Americans carry a credit card balance? ›
Federal Reserve data showed that fewer than half (47%) of credit cardholders carried a balance at some point in 2023. That's down a percentage point from 2021 and 2022 but is down even further from 2020, when that rate was 50%.
What percentage of US homes have no mortgage? ›
Not only is 96% of mortgage debt in the U.S. fixed rate, but 38.5% of homeowners don't have a mortgage at all.
Can most Americans afford a home? ›
In Seattle, New York City, Boston and four major metro areas in California — San Jose, San Francisco, Los Angeles and San Diego — prospective households would have to earn more than $200,000 per year to afford a typical home, according to Zillow.
How long does the average American keep their mortgage? ›
The average mortgage term in the U.S. is 30 years, though many homeowners refinance or move before completing this term. Homeowners typically stay in their homes for about eight years on average. A 30-year mortgage helps keep monthly payments more affordable for borrowers.
What is the average age people pay off their mortgage? ›
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.
What percent of Americans retire with a mortgage? ›
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.
What percentage of US citizens own their home? ›
According to the Federal Reserve, the homeownership rate in 2022 was 66.1%, up slightly from 64.9% in 2021. While this may seem like a substantial number of people who own property, it's 3 percentage points lower than the percentage of households who owned their own homes in 2004.
Do millionaires pay off their house? ›
Not only is there huge freedom in being completely debt-free and living in a paid-for house, but it's also a great way to build wealth—getting rid of your house payment leaves you with a ton of extra money each month to save for retirement. In fact, the average millionaire pays off their house in just 10.2 years.