Reverse Mortgage Statistics – Age 62 & Older,  by Wealth Status

Affluent House-rich & cash-rich Middle-income,
House-rich or cash-rich
Moderate wealth House-rich & cash-poor Poor,
House-poor & cash-poor
Age of householder 69 70 73 76 76
Home value $409,000 $175,000 $125,000 $350,000 $65,000
Household income $81,900 $49,800 $25,324 $12,468 $12,000
Has no mortgage/home loan 48% 60% 72% 71% 79%

Source: NCOA calculations based on data from the 2007 American Housing Survey Median household values

The study highlights different options for using home equity that are not part of the current national conversation. The reverse mortgage statistics include:

  • The use of reverse mortgages to delay the age at which one might begin to collect Social Security, thus increasing the amount of one’s ultimate monthly Social Security income.
  • Reverse mortgages as a stopgap measure to consolidate credit card debt, to cover investment losses or to defer mortgage payments.
  • Periodic distributions that would tap home equity to help people meet expenses if they outlive their savings/retirement income.
  • Programs that combine public benefits with modest amounts drawn from home equity to help seniors stay at home.
  • Home equity lines of credit for emergency spending, such as home maintenance, without which many homes decay and lose value.
  • Reverse mortgages with a line of credit option for borrowers to pay out-of-pocket health and home care expenses. Borrowers only pay the amount they use from the loan.

Our research on Baby Boomers indicates that they are more open than previous generations to tapping home equity and considering reverse mortgages to help fund their retirement,” said Timmermann.  With the right guidance and policy protection, reverse mortgages can be an important financial option for Boomers who do not have adequate savings.”

Dataman Group has the right lists to locate Reverse Mortgage prospects. Reverse Mortgage marketers can select their prospects by age, home value, household income and estimated equity in the home.

We may require a sample mail piece for any list targeting homeowners Age 65+.