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This is good news for homeowners in the United States: an increasing percentage now fully owns their own home. No mortgage, no lien.
According to data from the U.S. Census Bureau, as of 2024, about 38.8% of U.S. owners occupying homes are directly owned, meaning they no longer have a mortgage to pay. That's 40% between 2012 and 2022.
More than half of the homeowners during the reporting period were also over the retirement age of 65. So if you are lucky enough to be exempt from mortgages and go to retirement, there is a good chance you have a lot to do financially.
For beginners, if you choose to sell the value of the home, it represents 100% equity – which means your bank doesn't own it all. If the value of your property in your area has jumped since your purchase, your home is now much more than your overhead roof. This is also a warehouse of wealth.
It's a fully owned residence that can be converted in dollars and cents.
It is important to note that houses do not provide returns like traditional investments. After years of mortgage loans, most of your funds are handed over to the lender.
For example, in a $500,000 home with a down payment of $100,000 and a 15-year mortgage of 2.5%, you will pay about $80,000 in interest, excluding property taxes, repairs and insurance.
Even if you don’t have your own home, there are other ways to make the housing market work for you without a lot of down payments or managing property. New investment platforms are easier to enter the real estate market than ever before.
For accredited investors, Homeshares has access to the $36 trillion U.S. home equity market, which has historically been the exclusive playground for institutional investors.
With a minimum investment of $25,000, investors can directly access homes occupied by hundreds of owners in top U.S. cities through their U.S. housing stock funds without the mind of buying, owning or managing property.
With risk-adjusted internal rate of return ranging from 14% to 17%, this approach provides an effective, accessible way to invest in the owners of regional markets to occupy residential properties.
If you are not an accredited investor, crowdfunding platforms like Arrival, you can enter the real estate market for $100.
Arrivals provide you with stocks that earn SEC qualification investments in rental homes and vacation rentals, and curates and reviews their appreciation and revenue potential.
Supported by world-class investors like Jeff Bezos, it’s easy to fit these properties into your portfolio regardless of your income level. Their flexible investment amount and simplified process enable both accredited and unaccredited investors to take advantage of this inflationary asset class without any additional work from you.
House prices more than doubled between 2008 and 2013, according to the Federal Housing and Finance Bureau. This means that the $500,000 home purchased today in 2008 is worth $1.08 million today.
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Another way to determine your paid home is to consider how it affects your retirement budget.
By canceling the $2,500 mortgage, you can cut annual spending during your retirement period by $30,000. This can help you get your retirement income needs closer to the lower end of the 55%-80% range recommended by Fidelity. Paying off your home before retirement can make more years of mortgage investment.
For example, paying homes at age 60 released $150,000 to invest within five years. At a 7% return, it can grow to $210,000 - providing reliable retirement cushions and providing a means to build additional wealth.
Real estate investment can be a way to build lasting wealth. Gallup survey shows that for the 12th consecutive year, Americans have listed real estate as the best long-term investment in 2024.
Through strategic investments in commercial properties and residential real estate, investors can create strong portfolios that can both instant returns and long-term growth.
Today, innovative investment platforms make real estate easier to obtain than ever before. First National Realty Partners (FNRP) allows recognized investors to enter grocery store-anchored commercial real estate investments with a minimum investment of $50,000.
In the case of FNRP, investors own a portion of the real estate leased by national brands such as Kroger and Walmart, providing potential cash flow without the headaches of tenant costs and management.
One creative way to fund your retirement lifestyle is through reverse mortgages, which allows you to replenish your income by leveraging your home’s net worth to pay off a lot of debt or refurbish money.
As of March 2025, the net worth of the average homeowner is $313,000. It may depend on your financial situation.
You can choose to borrow funds with a one-time or fixed monthly payment and you can spend it as needed, allowing you to turn all your home equity into tax-free cash, thus helping your retirement lifestyle.
With reverse mortgage, you can continue to live at home while gaining its value – you don’t have to pay a mortgage monthly. Loans will only expire when you move, sell your home, or die.
This article provides information only and should not be construed as advice. It is without any warranty of any kind.