Skip to main content

Survey: Older Homeowners Still Uncertain on Tapping Home Equity

Phil Hall
Mar 28, 2017
The median downpayment for single-family homes and condos purchased with financing in the third quarter was $20,000

Most older homeowners are reluctant to tap into their home equity as a means of strengthening their financial retirement, according to new research released the National Council on Aging (NCOA) through its subsidiary NCOA Services LLC.
Culling data from focus groups involving 112 consumers aged 60-75 along with surveys of 254 financial advisors and 1,002 older homeowners, the NCOA research found rising medical expenses (cited by 91 percent of respondents) and outliving retirement savings (cited by 83 percent) as the principal concerns among older individuals. Four out of five respondents also expressed a desire to stay in their homes for as long as possible.
The survey also described reverse mortgages and home equity lines of credit (HELOC) without identifying them by name—and 58 percent of consumers and 43 percent of financial advisors preferred a reverse mortgage over a HELOC. But when both products were clearly identified, 68 percent of consumers and 37 percent of financial advisors stated a preference for a HELOC over a reverse mortgage.
“For most older people, the use of home equity in retirement is not a question of if, but when and how,” said Jay Greenberg, CEO of NCOA Services. “We need to do a better job of educating consumers about the products available and how best to use their homes as a strategic asset as they age.”
Mar 28, 2017
More from
CFPB Issues Warnings On Reverse Mortgage Marketing

Says it is working with state regulators to ensure fairness in advertising and teach consumers where to go for help.

Aug 15, 2023
Movement Mortgage Expands Into Reverse Mortgage

South Carolina mortgage company hires industry vet to run the operation

Aug 02, 2023
PHH Mortgage Signs Subservicing Deal With Finance of America Reverse

PHH, a subsidiary of Ocwen Financial, says deal offers opportunity to grow its reverse subservicing portfolio.

May 05, 2023
Judge Approves Liquidation Plan For RMIT

Decision OK'd after one-day delay for reverse mortgage lender to provide additional funding information.

May 01, 2023
MISMO Recruiting For New Reverse Mortgage Group

The development work group will analyze and develop standards for reverse mortgages.

Apr 28, 2023
Objections Raised To RMIT Chapter 11 Liquidation Plan

Lack of funds, plan to cease loan servicing among issues cited.

Apr 24, 2023