At What Age Does the Average American Have His or Her House Paid For?

by Isabella Craig on 2013/04/13

When Does the Average American Pay Off His or Her Home? When Does the Average American Pay Off His or Her Home?Generally speaking, the average age of the first time home buyer is between 30 and 35 years of age. 

After graduating from college and after saving up enough money, the priorities shift and the desire to be established financially and economically increases. 

But after the 30-somethings have moved into a house, at what age is the average US house paid for?

Currently, from coast to coast, about two-thirds of homes have mortgages, leaving one-third of homes clear of such debt.  The goal of the average American is to have their mortgage paid off by the retirement age, which is about 65 years of age. 

About 75 per cent of homeowners aged 65+ own their homes free and clear, but it wasn’t too long ago, back in the mid-1990s, that more than half of homeowners had their home paid off by the age of 55. 

So, what happened during the last 20 years to increase the average age of homeownership?

The housing crisis of 2007 to 2009 played a large role for such an increase.  From having been able to have your house paid for by the age of 55 in the 1990s to not being able to do so until your mid 60s, is a look into how closely tied together is the economy and its people. 

The changes in government-sponsored services like that of Fannie Mae and Freddie Mac and giving mortgages to lower income people are believed to have contributed to the housing and financial crisis. But that is not the whole story. The trade deficit of the time coupled with poor risk assessment of loans was what really bumped up the average age of when the average US house is paid off.

There are exceptional cases where people are able to pay off their home mortgage while still being in their 30s.  What can be done to help influence early mortgage payoff?  The amount of the initial down payment can shorten the time it takes to pay off the house. 

Putting more towards the monthly payment than what is necessary adds up quickly.  What this means is that you will be able to own your home sooner due to more payments in a shorter amount of time. 

Something else to take into account is the house’s worth versus the owner’s income.  The level of your income also determines the time it takes to pay off your mortgage.  Obviously, the more you make, the more you are able to put towards mortgage.

So, at what age is the average US house paid for? Well, you can expect to spend the next 30 years of your life paying a mortgage. So if you bought your house in your 30s, by your 60s, you will be able to enjoy your home free and clear of any more monthly payments.

If the housing and financial crisis of 2007 to 2009 never happened, would 55 still be the average age when the house is paid for?

Courtesy of CreditCardShoppe

{ 1 comment… read it below or add one }

Alexander August 2, 2013 at 10:14 am

No afraid not. If you want to ivmorpe your credit you will have to do the deposit type credit card thing where you agree to deposit say 200 dollars in an account with them and they will give you a 250 dollar limit. You will have to live with it for a while but if you are trustworthy they will give you one that is unsecured,I would not have one of those kinds of cards in my possesion ever again! I got out of a hole my husband and I dug about 10 years ago and now I have a debit visa card that will work just like a regular credit card but it isn’t credit.You are going to have to start a checking account and keep it for a little while before anyone will trust you.A savings account with a little bit in it is also a wonderful confidence builder for you.You should try to contact the people who are holding your credit down and see if you can make an arrangement with them to try to fix your problems,they are really good about working with people to get some of your money even if it is just a little every month.Hope I have helped you, it isn’t what you asked for,but I am telling you the Truth about all of it and a bad credit score is a very big push down when you try to even rent an apartment or get a job, because they can and do check your credit rating in making those kinds of choices anymore!


Leave a Comment

Previous post:

Next post: