The average American homeowner age 55 to 64 carries a mortgage balance of $143,000 according to the Federal Reserve’s 2022 Survey of Consumer Finances. At today’s rates near 6.8 percent for a 15-year loan, that payment eats $1,270 a month before taxes and insurance.
For many of us staring at retirement in ten years or less, that number feels heavier than the house itself. The good news is a few straightforward calculations can tell you exactly how much house you can carry without robbing your future self of groceries, prescriptions and the occasional trip to see the grandkids.
The 28/36 Rule Still Matters
Lenders still use the 28/36 guideline: housing costs should stay under 28 percent of gross monthly income and total debt under 36 percent. For a couple with $6,000 combined monthly income, that caps housing at $1,680.
Add property taxes averaging 1.1 percent of home value per year and homeowners insurance at $2,000 annually, and the math tightens fast. The Consumer Financial Protection Bureau reported in 2024 that 21 percent of borrowers over 50 now exceed the 36 percent total-debt threshold, mostly because of lingering student loans for adult children and rising health premiums.
Maintenance Costs Climb With Age
The National Association of Home Builders estimates annual maintenance at 1 to 4 percent of a home’s value. On a $400,000 house that equals $4,000 to $16,000 every year. After 50, many of us face new expenses: $3,200 average for a new roof every 20 years, $7,500 for HVAC replacement, and $12,000 for a ramp or walk-in shower if mobility changes.
A 2023 AARP study found 37 percent of homeowners 55 and older delayed necessary repairs because of cost, which only raises the eventual bill.
Downsizing Math That Actually Works
Selling a 2,800-square-foot family home and buying a 1,600-square-foot condo often cuts property taxes by 40 percent and utility bills by 35 percent according to data from the National Association of Realtors 2024 report. If your current house sells for $525,000 with $175,000 left on the mortgage, you could walk with roughly $320,000 after 6 percent realtor fees and closing costs.
Put half into a smaller paid-off home and invest the rest at a conservative 5 percent return and you generate $8,000 a year in extra income while slashing monthly housing costs from $2,100 to $650 including lower taxes.
Refinancing Versus Paying Off Early
フレディマックごとに、現在の15年固定金利は2025年6月時点で6.1％にとどまっている。 200,000ドルの残高をその金利で15年間借り換えると月額1,698ドルかかりますが、30年ローンを7.2％で維持する場合と比べて、合計利息は92,000ドル節約できます。 |||9月||| Bankrate の 2025 年向け償却計算ツールによると、毎月 500 ドルの追加資金がある場合、それを 6.8 パーセントの 30 年住宅ローンの元金に充当すると、ローンが 9 年間短縮され、利息が 124,000 ドル節約されます。 |||9月||| リバースモーゲージの現実 |||9月||| ホーム エクイティ コンバージョン モーゲージ プログラムでは、62 歳以上の住宅所有者が月々の支払いなしでエクイティを担保に借り入れを行うことができます。 HUD データによると、2024 年の平均借り手は 212,000 ドルを受け取りました。 |||9月||| 金利は複利になるため、7.5% の金利で 300,000 ドルの家は 5 年間で 45,000 ドルの資本を食いつぶす可能性があります。相続人は住宅を返済するか売却しなければなりません。消費者金融保護局は、2023年のリバースモーゲージ借り手の12％が固定資産税や保険を滞納し、家を失ったと警告している。 |||9月||| 税金とメディケアの影響 |||9月||| 15の州では、65歳以上を対象とした固定資産税軽減プログラムにより、請求額が年間500ドルから1,200ドル削減されている。これらの州のいずれかに移動するか、単に 65 歳になるまで待つかが重要になる可能性があります。 |||9月||| IRS セクション 121 に基づいて、55 歳以降に主要な住宅を売却すると、独身の場合は最大 25 万ドル、結婚している場合は最大 50 万ドルの利益を除外することができます。メディケアの保険料は収入に応じて増加します。 2025 年の修正調整総収入が 206,000 ドルを超える夫婦は、パート B および D の追加料金として年間 5,400 ドルを支払います。 |||9月||| 今日から使える簡単なワークシート |||9月||| 現在の月の総収入を列挙してください。住宅の天井の場合は 0.28 を掛けます。予想される固定資産税 (住宅価格に現地税率を掛けて 12 で割ったもの)、保険料 (平均 1,800 ドル)、HOA 手数料 (ある場合) を差し引きます。 |||9月||| 残りは現実的な住宅ローンの支払いとなります。その数字を現在の金利でオンライン計算機に入力すると、ローンの最大額がわかります。頭金の 20% を差し引くと、目標購入価格が決まります。 |||9月||| 予想されるメンテナンスを価格の 2% で調整し、退職後の予算と比較してください。ほとんどのプランナーは、フィデリティの2024年の推計によると、65歳以降は夫婦当たり平均31万5000ドルの医療費の余地を残すため、住居費を退職後の収入の20％未満に抑えることを示唆している。 |||9月||| 55～64歳の平均住宅ローン残高
If you have an extra $500 a month, applying it to principal on a 6.8 percent 30-year mortgage shortens the loan by nine years and saves $124,000 in interest according to Bankrate’s amortization calculator updated for 2025.
Reverse Mortgage Realities
The Home Equity Conversion Mortgage program lets homeowners 62 and older borrow against equity without monthly payments. The average borrower in 2024 took $212,000 according to HUD data.
Interest compounds, so a $300,000 home at 7.5 percent interest can eat $45,000 of equity in five years. Heirs must repay or sell the home. The Consumer Financial Protection Bureau warns that 12 percent of reverse-mortgage borrowers in 2023 defaulted on property taxes or insurance, losing the house.
Taxes and Medicare Impact
In 15 states, property-tax relief programs for those 65 and older cut bills by $500 to $1,200 annually. Moving to one of those states or simply waiting until 65 can matter.
Selling a primary home after age 55 lets you exclude up to $250,000 of gain if single or $500,000 if married under IRS Section 121. Medicare premiums rise with income; a couple with modified adjusted gross income over $206,000 in 2025 pays an extra $5,400 a year in Part B and D surcharges.
Simple Worksheet You Can Use Today
List your current gross monthly income. Multiply by 0.28 for the housing ceiling. Subtract expected property taxes (home value times local rate divided by 12), insurance ($1,800 average), and HOA fees if any.
The remainder is your realistic mortgage payment. Plug that number into an online calculator at current rates to see maximum loan size. Subtract 20 percent down payment and you have your target purchase price.
Adjust for expected maintenance at 2 percent of price and compare to your retirement budget. Most planners suggest housing costs stay below 20 percent of retirement income to leave room for health care that averages $315,000 per couple from 65 onward per Fidelity’s 2024 estimate.
Downsizing Savings Example
| Item | Current House | Smaller House |
|---|---|---|
| Sale/Purchase Price | $525,000 | $275,000 |
| Mortgage Balance | $175,000 | $0 |
| Monthly Payment | $2,100 | $650 |
| Annual Taxes | $5,775 | $3,025 |
| Yearly Maintenance | $8,000 | $4,000 |
| Cash Freed Yearly | $0 | $8,200 |
The smartest move after 50 is rarely about square footage or granite counters. It is about protecting cash flow so you can enjoy the years you have left without worrying about a roof that needs replacing or taxes that keep rising.
Take thirty minutes with last year’s tax return, this month’s bank statement, and a mortgage calculator. Write down the number you can truly afford. Then decide if your current house still fits or if a smaller, simpler place gives you both peace and extra money for the good life.
Most people who run these numbers are surprised how much breathing room appears when they stop guessing and start measuring.
Sources
- Federal Reserve, Survey of Consumer Finances (2022)
- Freddie Mac, Primary Mortgage Market Survey (June 2025)
- AARP, Home Repair and Maintenance Report (2023)
- National Association of Realtors, Existing-Home Sales Report (2024)
- Fidelity Investments, Retirement Health Care Cost Estimate (2024)
- U.S. Department of Housing and Urban Development, Reverse Mortgage Data (2024)
- Internal Revenue Service, Publication 523 (2025)