Are you making the most of your fully paid-off home? How American retirees can benefit from a mortgage-free life

Over half of homeowners from this reporting period are above the retirement age of 65. And according to Forbes, over the last 15 years, the average age of a homebuyer grew from 39 to 59 (3). If you’re fortunate enough to be mortgage-free and headed towards retirement, chances are you have a lot going for you financially.

For starters, the worth of your home, should you choose to sell it, represents 100% equity — meaning your bank owns none of it. If property values in your area have jumped since buying, your home is now much more than a roof over your head: it’s also a storehouse of wealth.

Here's a closer look at what a fully-owned residence could translate to in dollars and cents.

Hard-won returns

It’s important to note that homes don’t provide returns like traditional investments. After years of mortgage payments, much of your money goes to the lender.

For example, on a $500,000 home with a $100,000 down payment and a 15-year mortgage at 2.5%, you'd pay around $80,000 in interest, excluding property taxes, repairs and insurance.

That said, the median sales price of an American home grew by 30% between Q2 2020 to Q2 2025, based on data from the Federal Reserve Bank of St. Louis (4). This means that theoretically, a $500,000 home could have growth in value up to $650,000 in just five years.

The good news is, you don’t have to pay a mortgage to benefit from the housing market. New investing platforms are making it easier than ever to tap into the real estate market.

mogul is a real estate investment platform offering fractional ownership in blue-chip rental properties, which gives investors monthly rental income, real-time appreciation and tax benefits — without the need for a hefty down payment or 3 A.M. tenant calls.

Founded by former Goldman Sachs real estate investors, the team hand-picks the top 1% of single-family rental homes nationwide for you. Simply put, you can invest in institutional quality offerings for a fraction of the usual cost.

Each property undergoes a vetting process, requiring a minimum 12% return even in downside scenarios. Across the board, the platform features an average annual IRR of 18.8%. Their cash-on-cash yields, meanwhile, average between 10 to 12% annually. Offerings often sell out in under three hours, with investments typically ranging between $15,000 and $40,000 per property.

Every investment is secured by real assets, not dependent on the platform’s viability. Each property is held in a standalone Propco LLC, so investors own the property — not the platform. Blockchain-based fractionalization adds a layer of safety, ensuring a permanent, verifiable record of each stake.

Getting started is a quick and easy process. You can sign up for an account and then browse available properties. Once you verify your information with their team, you can invest like a mogul in just a few clicks.

Your fully owned home’s ripple effect

Another way to determine what your paid-off home is worth is by considering how it impacts your retirement budget.

By eliminating a $2,500 mortgage payment, you cut your annual expenses during retirement by $30,000. This can help bring your retirement income needs closer to the lower end of the 55% to 80% expenditures range Fidelity suggests retirees be prepared to spend (5). Paying off your home before retirement can also make for more years of mortgage-free investing.

For example, paying off your home by the time you’re 60 frees up $150,000 to invest over five years. At a 7% return, that can grow to $210,000 — bolstering your retirement cushion.

Real estate investing can be a proven path to building lasting wealth. For the 12th year in a row, Americans have ranked real estate as the best long-term investment in 2025, according to a Gallup survey (6).

While you might choose to invest your excess cash in the stock market, you could also re-invest it in real estate opportunities that are poised for growth. Take multifamily housing, for instance.

In a J.P. Morgan report, vice chair of Commercial Banking Al Brooks said, "I think multifamily housing is absolutely where you want to be as an investor.” He added, “The multifamily rental market may still feel the impact of a recession, but to a lesser degree than other asset classes (7).”

And when it comes to retirement planning, you’ll want to make sure your investments are well-positioned to manage the storm — should the next recession hit.

Through strategic investments in commercial properties and residential real estate, investors can create a robust portfolio that provides both immediate returns and long-term growth.

If diversifying into multifamily or industrial rentals appeals to you, you could consider investing with Lightstone DIRECT, a new investing platform from the Lightstone Group, one of the largest private real estate companies in the country with over 25,000 multifamily units in its portfolio.

Since they eliminate intermediaries — brokers and crowdfunding middlemen — accredited investors with a minimum investment of $100,000 can gain direct access to institutional-quality multifamily opportunities. This streamlined model can help reduce fees while enhancing transparency and control.

And with Lightstone DIRECT, you invest in single-asset multifamily deals alongside Lightstone — a true partner — as Lightstone puts at least 20% of its own capital into every offering. All of Lightstone’s investment opportunities undergo a rigorous, multistage review before being approved by Lightstone’s Principals, including Founder David Lichtenstein.

How it works is simple: just sign up with your email, and you can schedule a call with a capital formation expert to assess your investment opportunities. From here, all you have to do is verify your details to begin investing.

Founded in 1986, Lightstone has a proven track record of delivering strong risk-adjusted returns across market cycles with a 27.6% historical net IRR and 2.54x historical net equity multiple on realized investments since 2004. All told, Lightstone has $12 billion in assets under management — including in industrial and commercial real estate.

As such, even if multifamily rentals don’t appeal to you, Lightstone could still serve you well as an investment vehicle for other real estate verticals.

Get started today with Lightstone DIRECT and invest alongside experienced professionals with skin in the game.

Cashing out your equity

Another perk of homeownership is that you can get creative with funding your retirement lifestyle. For instance, you can easily tap into your home liquidity through a Home Equity Line of Credit (HELOC).

A HELOC is a revolving line of credit that leverages the equity in your home as collateral, so that you can borrow and repay funds as needed — similar to a credit card.