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| Housing Choices and Mortgage
Financing Options for Seniors Authors: Karen E. Lahey, Melinda L. Newman and Doseong Kim
Start Page: 103 Abstract: Why would an individual or couple who are age 55 or older have a mortgage on their primary residence or second home? Life-cycle financial patterns of behavior suggest that mortgages should be paid-off by this age. The purpose of this study is to examine the option of seniors to finance their primary residence and/or second home and the resulting difference(s), if any, in their asset allocations. Results indicate that the majority of seniors do have a mortgage. Based on probit and regression analyses, respondents are more likely to have a mortgage if they have a higher market value for their primary residence, a home equity line of credit, a second home, are not retired, and/or have a lower level of liquid assets.
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