Active Agers’ Interest In Reverse Mortgages
The first reverse mortgage (aka Home Equity Conversion Mortgage) was issued by a bank in Portland, Maine in 1961. Since that time, they have undergone significant changes to make it a safer and more widely accepted and used financial vehicle today.
It is estimated that only 2-3% of eligible Americans have a reverse mortgage today yet several forces are at play that may turn them into an essential financial tool for older adults in the future.
Given the potential growth opportunity for reverse mortgages, Age of Majority wanted to learn more about older adults’ understanding and perception of these products, along with reasons for using them and barriers that need to be overcome.
The majority of older adults have a solid understanding of what reverse mortgages are, however, there is a high level of negative feelings towards them.
Mortgage companies and professional brokers have an opportunity to significantly expand interest levels and increase close rates by better understanding the hot buttons and trigger points associated with reverse mortgages.
Active Agers, who are members of Age of Majority’s Revolution55 community (all ages 55+), were asked to share their thoughts on reverse mortgages.
806 participants responded to a survey that was conducted between September 30, 2021 to October 8, 2021.