National Mortgage News – Most Seniors Don t Want Reverse Mortgages, Poll Finds
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Most Seniors Don’t Want Reverse Mortgages, Poll Finds
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Only 14% of retirees have even considered a reverse mortgage, and only one person out of 1,000 polled actually entered into one, according to the American College of Financial Services.
The school’s survey, the results of which were released Monday, found that 44% of respondents considered drawing home equity in retirement, though only 25% were comfortable using it as a source of *regular income.
The top reason listed for why respondents chose not to enter into a reverse mortgage was that they had sufficient income already, with 44% of retirees selecting this answer. Other commonly cited reasons included “too young,” “not ready” and “too risky.”
American College, based in Bryn Mawr, Pa., added that the respondents displayed “a slightly negative view on reverse mortgages as a retirement tool.”
The college, which offers graduate degrees and professional certifications, also found that only three out of 10 retirees *demonstrated even passing knowledge of the product when given a 10-question quiz about it. Furthermore, 10% of the respondents in the institution’s survey answered all questions incorrectly.
Despite the lack of knowledge, American College said that the retiree respondents “thought they were more knowledgeable on reverse mortgages” than their scores on the quiz showed, suggesting “both some degree of overconfidence and misunderstanding.”
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Most Seniors Don't Want Reverse Mortgages, Poll Finds
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