Sixty-eight percent of adults 70 and older are mortgage-free, while 15.9% of Millennials are free and clear of mortgage payments.
For younger homeowners, there are pros and cons to paying off a mortgage early, so it’s important to look at the big picture and trade-offs.
What percentage of homes are owned free and clear?
Almost 40% of U.S. Homes Are ‘Free and Clear’ of a Mortgage
About 37% of U.S. households are “free and clear,” meaning they no longer have a home mortgage to pay, according to a Zillow data analysis.
What is the average mortgage balance?
The average mortgage debt was $201,811. The average non-mortgage debt per household was $24,706. The average student loan balance was $34,144, which is a new record. The average balance on credit cards was $6,354.
Is paying off mortgage early worth it?
By paying off your mortgage early, you’ll save on the additional interest expense that would have been incurred in your regular payments. This savings can be significant, and will increase with the prepayment amount. The lower your interest rate, the less you stand to benefit through early retirement of debt.
Do you own your house if you have a mortgage?
Simply put, yes, you do own your home but your mortgage lender does have interest in the property based on documents signed at closing. Deed of Trust – this document lists the legal obligations and rights of you and the lender. It also states the lender’s right to foreclose on the home if you default on the loan.