New research released from the American Advisors Group (AAG) shows that seniors’ homes not only have a ton of monetary worth, but they have significant sentimental value as well.
"Buying a home is one of the largest purchases someone can make, and for many seniors, that purchase has turned into an investment," said AAG chief marketing officer Martin Lenoir. "Our data shows that older Americans are well aware of what their homes are worth and are looking to utilize the equity they have gained, which is a big reason why we're seeing so many seniors interested in reverse mortgages. Homes not only embody the journey that seniors have lived, they also represent a possible retirement strategy for the future."
In the AAG Importance of Home Survey, with over 1,500 participants aged 60-75, nearly three in four seniors (74%) said that buying a home was the best financial decision of their life. For older Americans, their home is their greatest investment, and nearly three in four seniors (73%) said their home is now their most valuable asset.
Many seniors have indicated they find comfort in their current home and don’t plan on leaving it. A reported 92% of seniors said they would prefer to live their later years in their current home instead of moving into an assisted living facility. Perhaps, this is due to 62% of seniors stating they have an emotional attachment to their home.
Seniors have long held on to their investments. Over half of American seniors (55%) have paid off their home and are now living without a mortgage. For seniors who still have a mortgage, 40% are looking to use the equity they’ve built to eliminate their monthly payment.
Seniors who use a reverse mortgage loan to keep their home long-term are required to pay taxes and insurance, maintain the home, and live in the home as their primary residence.
AAG's Importance of Home Survey was conducted via digital platform on June 2, 2021, and included 1,552 participants.
