Home Equity Product Awareness Among Older Homeowners & Financial Advisors
2 min read
Related Topics
This brief summarizes the results of an 8-month survey of older homeowners and financial advisors regarding their interest in and understanding of home equity products.
The research was conducted by NCOA Services, LLC (a former subsidiary of NCOA) and funded through a grant by Reverse Mortgage Funding LLC (RMF).
The research found that:
- Despite the importance of home equity as part of their financial portfolio, older homeowners do not understand and are reluctant to use home equity products.
- Older homeowners and financial advisors have a strong negative bias against the Reverse Mortgage Line of Credit, based exclusively on product name and driven by preconceived notions and misunderstanding of the product.
- Based on product features alone, both consumers and financial advisors prefer the Reverse Mortgage Line of Credit, citing it as less risky and more desirable than a Home Equity Line of Credit.
- Older homeowners are open to education and information to help them better understand safe and appropriate ways to use home equity products to address their retirement needs.
The research findings are available as both an info brief and full report below.