When Susan Apel and Keith Irwin bought their four-bedroom house on two acres in Lebanon, New Hampshire, 24 years ago, they believed they were making a wise investment for their future. They paid off their mortgage before retiring, anticipating that the home equity they had built would eventually allow them to downsize into a more manageable space. Now both 71, they find themselves struggling with the physical demands of maintaining their property. The stairs have become a challenge for Susan, a retired law professor, and Keith, previously an account manager, is weary of yard work and snow shoveling. However, selling and downsizing isn’t as straightforward as they had hoped.

This scenario is becoming increasingly common for older adults in the United States. As highlighted in a recent New York Times article, many older homeowners face rising mortgage debt, increasing maintenance costs, and the complexities of accessing home equity. The American dream of homeownership, once seen as a secure investment for retirement, is now presenting unexpected challenges. The question arises: Are older adults truly “aging in place,” or are they stuck in place, unable to move forward?

The Reality of Rising Mortgage Debt

 

The proportion of older adults with mortgage debt has been steadily rising for decades. According to the Harvard Joint Center for Housing Studies, the share of homeowners aged 65 to 79 with mortgages climbed from 24 percent in 1989 to 41 percent in 2022. The amount they owe has also increased significantly, with the average mortgage balance rising from $21,000 to $110,000 when adjusted for inflation.

For many, this debt burden can become overwhelming. Larger mortgage balances, combined with higher interest rates, property taxes, and insurance costs, have left 43 percent of older homeowners with mortgages “cost burdened,” meaning they spend 30 percent or more of their income on housing and related expenses. Even among homeowners in their 80s, 31 percent still carry mortgage debt【source: Harvard Joint Center for Housing Studies】.

Challenges in Accessing Home Equity

Home equity, once considered a financial safety net, is not always easy to access. While federally insured reverse mortgages, known as Home Equity Conversion Mortgages (HECMs), are an option, the upfront costs can be prohibitively high. For example, one couple cited in the New York Times article faced over $17,000 in upfront costs for their reverse mortgage, along with substantial paperwork. In 2022, only 64,500 older applicants received reverse mortgages through the federal program【source: Consumer Financial Protection Bureau】.

Furthermore, older borrowers often face difficulties when seeking refinancing loans. Lenders consider both income and assets, and since income typically declines after retirement, seniors are often denied these loans. Home equity lines of credit (HELOCs) are also more frequently denied to older adults, particularly as interest rates rise【source: Urban Institute】. As houses age, maintenance costs also increase, further straining the finances of older homeowners.

How Technology Can Help Navigate These Challenges

If you or a loved one are struggling with the financial and physical challenges of homeownership in later life, several apps and online resources can help you make informed decisions, manage your finances, and explore your options.

1. Truehold: Truehold offers a unique solution for seniors who want to access their home equity without moving out. The platform allows homeowners to sell their home to Truehold while retaining the right to live in it as a renter. This can provide immediate cash for expenses while eliminating the burden of home maintenance and property taxes.
2. Hometap: Hometap is another option for those looking to access home equity without taking on more debt. The platform invests in your home, providing cash upfront in exchange for a share of your home’s future This can be a flexible way to unlock equity without the stress of monthly payments.
3. Zillow’s Home Loans: Zillow’s Home Loans platform offers tools and calculators to help you understand your mortgage options, including refinancing and reverse mortgages. It also provides educational resources on how to manage mortgage debt and explore different loan options.
4. AARP’s HomeFit: AARP’s HomeFit guide offers practical tips and resources for making your home safer and more comfortable as you age. This includes advice on modifying your home to accommodate mobility challenges, such as installing stair lifts or walk-in showers.
5. Nolo’s Reverse Mortgage Guide: Nolo’s online guide provides detailed information on reverse mortgages, including how they work, the costs involved, and the pros and It’s a valuable resource for anyone considering this option to access home equity.

Making the Right Choice

The challenges of aging in place are real, but with the right tools and information, you can make choices that best suit your needs and lifestyle. Whether you decide to stay in your current home, downsize, or explore other options, it’s important to plan carefully and seek out resources that can help you navigate these decisions.

Join the Conversation

Are you or someone you know facing challenges with homeownership in later life? What strategies or resources have you found helpful? Share your experiences and connect with others in our forum: Age Brilliantly Forum. By sharing our stories and supporting each other, we can help ensure that aging in place doesn’t mean getting stuck in place.