How many homeowners have paid off their mortgages?

Over 40% of U.S. homeowners, or roughly 35 million households, own their homes outright without a mortgage as of 2024-2025, a record high driven largely by aging Baby Boomers paying off loans, though specific numbers vary slightly by data source and year. This percentage has steadily climbed from about 32.8% in 2010, with about 900,000 new loans paid off in 2024 alone.

What percentage of homeowners have paid off their mortgage?

Over 40% of U.S. homeowners now own their homes mortgage-free, a number that has been steadily growing due to aging populations paying off loans and long-term demographic shifts, with recent Census Bureau data showing this trend continuing into 2024 and 2025. While nearly 40% are mortgage-free, about three out of five households still have a mortgage, and a rising number of older Americans are carrying debt into retirement, according to recent marketplace reports and Census data.
 

What percentage of homeowners own their home outright?

A record 40.3% of U.S. homeowners now own their homes outright — the highest level ever. That's up from 39.8% in 2023 and just 32.8% in 2010, per new Census data analyzed by ResiClub.

What does Suze Orman say about paying off your mortgage early?

Personal finance guru Suze Orman says it depends. While the possibility of job loss can trigger financial panic, Orman advises against rushing to drain your savings to pay off your mortgage early. Even if you have enough money saved to wipe out your mortgage, don't pull the emergency cord until absolutely necessary.

How many Americans are 100% debt free?

Around 23% of Americans are debt free, according to the most recent data available from the Federal Reserve.

The True Value of Having a Paid-Off Home

How many Americans have $20,000 in credit card debt?

A majority of Americans (53%) carry some, with an average balance of $7,719. However, a third of those carrying debt (32%) owe $10,000 or more, while almost 1 in 10 (9%) have credit card debt over $20,000.

Is being debt-free the new rich?

Yes, for many people, being debt-free feels like the new rich because it provides immense financial freedom, peace of mind, and security, even if it doesn't mean having millions in the bank; it shifts the definition of wealth from pure income to a lack of financial burdens, allowing for more saving, investing, and enjoying life without stress. While traditional wealth is assets minus liabilities, eliminating debt frees up income for wealth-building, making it a significant step towards financial well-being and independence, especially as many struggle with rising costs and stagnant wages. 

Why is it not smart to pay off your mortgage?

You might miss out on investment returns: If your mortgage rate is lower than what you'd earn on a low-risk investment with a similar term, you might consider keeping the mortgage, paying it off gradually, and investing what extra you can.

Do most millionaires pay off their mortgage?

Not only is there huge freedom in being completely debt-free and living in a paid-for house, but it's also a great way to build wealth—getting rid of your house payment leaves you with a ton of extra money each month to save for retirement. In fact, the average millionaire pays off their house in just 10.2 years.

What is Dave Ramsey's 8% rule?

Dave Ramsey's 8% rule suggests retirees can safely withdraw 8% of their starting portfolio value annually, adjusted for inflation, by investing 100% in stocks, expecting a 12% average return to sustain withdrawals. This strategy is highly controversial, as it differs significantly from the traditional 4% rule, carries much higher risk (especially with early market downturns), and relies heavily on consistent high stock market returns, leading many financial experts to criticize it as unsustainable and overly optimistic. 

Why are so many people mortgage-free?

A Record Share of Homeowners Are Mortgage-Free

Demographics. As Baby Boomers age and stay in their homes longer, many have had the time to fully pay off their mortgages. You might be in that group too and not even realize just how much buying power you now have.

What salary do you need for a $400000 mortgage?

To comfortably afford a 400k mortgage, you'll likely need an annual income between $100,000 to $125,000, depending on your specific financial situation and the terms of your mortgage.

Do most retirees have their house paid off?

According to KFF, among Medicare beneficiaries, the median per-capita home equity rises from $134,450 for those aged 65 to 74 to $179,700 for those aged 85 and older.4 That trajectory makes sense: older homeowners are more likely to own their homes outright, whereas younger retirees might still be paying off a mortgage ...

How many people own their home free and clear?

Nationally, about 40% of homes are mortgage-free. The share is highest in West Virginia, with 55%, and lowest in D.C., with 26%. D.C. A record 40.3% of U.S. homes are now owned outright, according to the latest Census Bureau data.

What age do most people have their house paid off?

The average age to pay off a home mortgage in the U.S. is around 62-63, but it's shifting, with many homeowners now paying into their late 60s or even 70s due to longer loan terms, higher home prices, and refinancing. While older generations often achieved mortgage-free status by retirement, many current borrowers, especially first-time buyers, face paying until age 64 or beyond, making it common to still have a mortgage in retirement. 

What percentage of 70 year olds have a mortgage?

Over the past three decades, the share of homeowners ages 65 to 79 with a mortgage rose from 24% to 41%. More older adults are entering retirement in debt — including mortgage debt. Mortgages make up about 70% of household balances.

What percentage of Americans are 100% debt free?

Federal Reserve data shows that about 23% of Americans have no debt. Striving to live without debt is admirable, but having debt isn't automatically bad. For example, a mortgage is a significant debt, but you're building equity in an asset that's likely to appreciate over time.

What are the six worst assets to inherit?

The Worst Assets to Inherit: Avoid Adding to Their Grief

• What kinds of inheritances tend to cause problems? ...
• Timeshares. ...
• Collectibles. ...
• Firearms. ...
• Small Businesses. ...
• Vacation Properties. ...
• Sentimental Physical Property. ...
• Cryptocurrency.

Which actor wiped out debt for 900 families?

Actor Michael Sheen paid off $1.3 million worth of debt for his neighbors. Plus, this guy has been diving for lost golf balls for 30 years.

What does Suze Orman say about paying off your house?

The best way you can put certainty in your life is to own your home outright by the time you retire. Now, I am not telling you to do this if you are 35 years of age and you know that you are going to move in three or four years fine, then you don't pay your house outright.

Is there a tax disadvantage to paying off a mortgage?

Peace of mind, saving on interest and building equity are three benefits of paying off your mortgage. Downsides include opportunity cost, reduced liquidity and removing a major tax deduction.

What does Dave Ramsey say about paying off a mortgage?

“Paying off your mortgage early seems impossible but it is completely doable and people do it all the time, but how can you do it and why would you want to put in the extra effort? Paying off your mortgage early will rev up your wealth building.”

Is $100,000 a year considered wealthy?

Earning $100,000 a year puts you above average in the U.S. and often into the "upper-middle class," but whether it feels "rich" depends heavily on your location (cost of living), household size, debt, and lifestyle, as it may cover basics comfortably in some areas but feel tight in expensive cities or with dependents. It's considered a strong salary, allowing for savings and a good lifestyle, but not "wealthy" like the top 1-5% of earners, who make significantly more. 

At what age should you be debt-free?

By the age of 50 it is ideal to be debt-free, and your retirement savings should be enough to give you a comfortable life. Retiring with debt can be a stressful.

What is the 2 2 2 credit rule?

The 2-2-2 credit rule is a guideline for lenders, especially for mortgages, suggesting borrowers should have at least two active credit accounts, open for at least two years, with at least two years of on-time payments, sometimes also requiring a minimum credit limit (like $2,000) for each. It shows lenders you can consistently manage multiple debts, building confidence in your financial responsibility beyond just a high credit score, and helps you qualify for larger loans.