Key Takeaways
- Housing is often the biggest retirement expense, so a mortgage under $700 a month can make your income go further.
- Affordable options span the U.S., from Georgia and Virginia to South Dakota and Arizona.
- Some states—such as Pennsylvania and Iowa—don’t tax Social Security or other retirement income, which can also help stretch your money.
- Lower housing costs free up income for health care, travel, and leisure in retirement.
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Why an Affordable Mortgage Matters in Retirement
The U.S. Bureau of Labor Statistics’ 2023 Consumer Expenditure Survey shows retired households spend about $5,000 a month, with housing as the biggest cost. Keeping mortgage payments relatively low—say, under $700—can leave more room in your budget for health care, travel, and leisure pursuits.
How the Best Retirement Towns Are Chosen
To choose the best retirement towns, Investopedia considered these four factors: cost of living, access to travel, access to health care, and access to entertainment. Collecting and evaluating these data points determined affordability and interest to retirees—meaning that the best ones were chosen both because they are inexpensive places to live and because they offer an attractive quality of life and access to services. Learn more about our methodology.
11 Top Retirement Places With Mortgages Under $700
In these places, it’s possible to keep a monthly mortgage payment under $700. Estimates are based on the county’s median home price with 20% down and the average 30-year mortgage rate for that state as of Sept. 24, 2025. Retirees who put more down may see even lower payments, while choosing a shorter loan term, such as 15 or 20 years, would also change the estimate.
Ware County, Georgia
In Ware County, the typical mortgage payment is about $550. Located roughly 90 minutes from Jacksonville, Florida, and just an hour from the Atlantic coast, it offers strong health care access for its nearly 14,000 residents.
Adams County, Mississippi
In this county about two hours from both Baton Rouge, Louisiana, and Jackson, Mississippi, the typical mortgage payment is $543. Home to roughly 1,500 residents, it also offers a retirement-friendly tax climate—Mississippi doesn’t tax Social Security benefits or retirement account withdrawals.
Guadalupe County, New Mexico
With a median home price of $107,200, the typical mortgage payment in this county is just $556. Home to about 2,700 residents, it carries very low climate risk and sits roughly two hours from both Albuquerque and Santa Fe.
Danville, Virginia
In this medium-sized city on the Virginia–North Carolina border, the typical mortgage payment runs about $572. With a population of roughly 43,000 and just a 45-minute drive from Greensboro, North Carolina, the city also offers strong access to health care.
Cambria County, Pennsylvania
In this county about 90 minutes east of Pittsburgh, a typical mortgage payment is just $600. Nearly 18,000 residents call it home, and there is strong health care access nearby. Retirees also benefit from Pennsylvania’s tax-friendly approach, which exempts Social Security, pensions, and retirement plan distributions.
Adams County, Iowa
The typical mortgage payment in this county is $603. With a population of just under 14,000 and located about 90 minutes east of Omaha, Nebraska, it also ranks very low for climate risk according to the Federal Emergency Management Agency (FEMA). Retirees gain an added Iowa advantage, with pension, 401(k), and individual retirement account (IRA) income exempt from state taxes starting at age 55.
La Paz County, Arizona
In this county just south of Lake Havasu, the typical mortgage payment is about $610. Home to roughly 3,400 residents, it carries a relatively low county-level climate risk. Retirees also enjoy convenient access to big-city amenities, with Phoenix less than a two-hour drive away.
Choctaw County, Oklahoma
The median house price in this county is just under $120,000, leading to a typical mortgage payment of $613. Located within a three-hour drive of Dallas, Oklahoma City, and Tulsa, the county has 5,200 residents and represents a relatively low climate risk.
Delaware County, Indiana
In this county of about 65,000 residents, the typical mortgage payment is $648. Anchored by Muncie—home to Ball State University—it offers strong health care access and sits less than an hour from Indianapolis.
Gregory County, South Dakota
In this county along the Missouri River, the typical mortgage payment is $658. With just over 1,200 residents, it offers small-town living plus a major retirement perk—South Dakota has no state income tax, meaning Social Security and retirement account withdrawals aren’t taxed.
Bay County, Michigan
Bordering Lake Huron’s Saginaw Bay, this county of nearly 32,000 residents has a typical mortgage payment of $690, based on a median home price just over $135,000. It also offers strong health care access, making it an affordable and practical choice for retirees.
The Best of Both Worlds: Cost and Quality
These retirement spots offer two key perks—affordability and quality—and show that you can have both. With features such as strong health care access, low climate risk, and favorable tax environments, it’s possible for retirees to make smart financial choices without sacrificing comfort. Minimizing financial strain means more time and resources for things you enjoy about retirement.
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The national and state averages cited above are provided as is via the Zillow Mortgage API, assuming a loan-to-value (LTV) ratio of 80% (i.e., a down payment of at least 20%) and an applicant credit score in the 680–739 range. The resulting rates represent what borrowers should expect when receiving quotes from lenders based on their qualifications, which may vary from advertised teaser rates. © Zillow, Inc., 2025. Use is subject to the Zillow Terms of Use.