11 November 2010

The survey also showed interesting results concerning borrowers’ retirement plans: those with extended amortization plan to retire on average at 61.9 years, and those with less than 25 years amortization – at 61.5 years.

“Of course, these are just expectations, and they don’t mean recent housing and mortgage markets trends won’t affect people’s retirement,” the report noted. “But it still suggests that consumers’ evaluations of their life-cycle options haven’t changed”.

Actually, homeowners prefer longer amortization periods because in this case they’ll have lower monthly payments, though many of them plan to make additional payments in the future.