“More than three-quarters of Americans over 65 remain homeowners despite housing market gyrations. Those houses usually represent their greatest single asset. But often there’s little equity left, even as prices have largely recovered, because so many older homeowners have borrowed against their homes.”
LTC Comment (from Stephen A. Moses, President, Center for Long-Term Care Reform):
Rising mortgage debt among retirees is an alarming trend. Blame the Fed for pushing interest rates so low that elders have to tap home equity to replace lost investment income. Long-term consequences are serious because home equity will be needed as a fall-back when Medicaid stops funding LTC for homeowners.
They’re Growing Older. Their Mortgage Debt Is Growing Deeper.