44% of 60 to 70-year-old homeowners bring their mortgage into retirement, finds a study from American Financing. To make matters worse, 32% said it will take them more than eight years to pay it off and 17% report they’ll likely never pay it off. The study predicts Baby Boomers will carry their mortgage debt into their 70s.
The survey also found 64% of 60 to 70-year-old homeowners plan to stick around in their current home and 62% plan to leave their house to their children/estate. American Financing suggests two ways to help Boomers with financial issues including a mortgage refinance and a reverse mortgage, a home loan that converts a portion of home equity into cash.
The survey says 19% of Boomers don’t know what a reverse mortgage is although it can be a good option to help people with limited income use accumulated wealth in their homes to cover monthly living expenses.