Older adults who are still carrying a balance on their mortgage are more likely to delay retirement, according to researchers from Boston College's Center for Retirement Research. These homeowners may need to take out a reverse mortgage if their age and health stops them from working while they have outstanding debt.
Nearly 65 percent of borrowers with mortgages are still working at age 64, compared to only 54 percent of those without mortgages, notes the paper. "When that time comes, how will those with debt manage their monthly mortgage and credit card payments?" ask study authors Barbara Butrica and Nadia Karamcheva. "Possibilities include selling their homes, buying reverse mortgages, or declaring bankruptcy."