WASHINGTON (5/8/14)--The Consumer Financial Protection Bureau released a report Wednesday spotlighting the mortgage debt challenges faced by a growing number of older Americans. These challenges include more mortgage debt, less affordable housing and a greater risk of foreclosure.
"A home can be a place of security for older Americans in their retirement years--a roof over their heads as well as a valuable asset," said CFPB Director Richard Cordray. "But as more seniors carry significant mortgages into retirement, they put themselves at risk of losing their nest eggs and their homes."
Approximately 80% of the 41 million Americans age 65 and older own their home, the highest homeownership rate among all age groups. But while their rate of homeownership has remained constant over the last decade, the percent of older homeowners holding mortgages has increased.
The report's highlights include:
The CFPB also issued an advisory highlighting three issues that older Americans should consider while managing mortgage debt in retirement: determining their mortgage pay-off date, the risks of getting home equity loans or refinancing and what less income during retirement will mean while still paying a mortgage.