If you're like many Americans, you're convinced that you should own a home by the time you retire. Maybe it's something your grandparents said to you, or you read it somewhere.

The point is, it's easy to believe that homeownership is essential as you age. Who knows? Owning a home may be precisely what you should aim for. But then again, it's not the right move for everyone.

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Carrying a mortgage

The Center for Retirement Research at Boston College found that half of retired homeowners born in the early years of the baby boom still carry mortgage payments. Unlike their parents' generation, when most retirees owned their homes outright, mortgage payments are still a reality for many retirees. And those carrying the most debt have the least put away for a rainy day.

The fact that they're spending a large portion of their monthly income on a mortgage can require tough decisions. For example, do they continue to pull from their retirement savings to pay a mortgage and home maintenance expenses, or do they downsize? When the situation becomes too critical, they may have to choose between paying the mortgage and covering other vital needs, such as healthcare costs.

Consider this: It's not unusual for people to spend less money during retirement than they would spend if they were still working. In fact, spending between ages 65 and 81 drops, on average, 28% among homeowners with relatively small mortgages. For those with larger mortgages, spending falls by 39%.

That's not to say that homeownership in retirement is a negative thing. However, there are pros and cons.

Benefits of homeownership

Many of the benefits associated with homeownership provide a greater sense of security. They include:

• (Generally) fixed cost: While you do have to adjust for a higher monthly payment when the price of homeowners insurance or property taxes rise, with a fixed-rate mortgage, your monthly principal and interest payment remains the same.
• Asset appreciation: It's not guaranteed, but real estate values tend to appreciate over time, potentially increasing your overall net worth.
• Access to equity: In a tight situation, you may have access to a home equity loan, home equity line of credit (HELOC), or reverse mortgage.
• Personal touch: Without landlord restrictions to deal with, you can modify your home to reflect your needs and preferences.
• Tax benefits: If you itemize your tax returns, you may benefit from deducting mortgage interest and property taxes.
• Income potential: If you travel a great deal, you can consider renting your home out for additional income when you're away.
• Legacy: Provided your home is in a good location and well-maintained, leaving it behind after you pass away can leave your heirs with a substantial asset.

Burdens of homeownership

There's no denying that homeownership comes with responsibilities that fall solely to you. They include:

• Maintenance costs: Everything, from repairs and renovations to ongoing maintenance, is your financial responsibility. One way to determine how much you're likely to spend on maintenance annually is to multiply the square footage of your home by 1. For example, if you own a 2,000-square-foot house, you can expect to spend at least $2,000.
• Property taxes: Just as you can't control the rising cost of rent, you have little control over property taxes.
• Selling challenges: There's no guarantee that you can sell your home quickly if you need to downsize or relocate.
• Changes to the neighborhood: Any significant changes can affect your home's value, a fact you have very little control over.
• Aging in place: If you're hoping to stay in your home throughout your life, you may face expensive alterations to your property to ensure your safety.

What to consider

For some, homeownership is the way to go. In fact, it may help them feel more comfortable and secure in retirement. For others, it's simply another responsibility and expense that they would prefer to skip.

If you're already retired, you're not tied to your decision. If you decide that you'd rather rent and let someone else take care of maintaining your property, that's certainly an option. But if you're not retired yet, now is a good time to decide whether homeownership will be part of your overall retirement plan.