Only 2% of Baby Boomers Are Using Reverse Mortgages

Capture According to a recent poll done by Harris Interactive, only 2% of the baby boomer population are using reverse mortgages. The poll, which included 2,383 adults found that the overall sentiment towards mortgage program options is generally unfavorable. The poll showed that 70% of baby boomers (Ages 43-61) and 74% of matures (62+) are aware of reverse mortgages but only 2% of both groups are actually using the products. While I cant say I am shocked by this number, it goes to show that we have a long way to go educating the public about the product.

Recently we’ve seen different studies released by Boston College and a detailed report from HUD on the reverse mortgage secondary market which both showed interesting data on the baby boomer generation. While this poll isn’t quite as detailed as these studies, it does show some interesting information. To see the results of the poll click the link below.

The Overall Sentiment Towards Most Of The Various Mortgage Options Is Generally Unfavorable

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  • There is no question that education is still the key. Awareness is indeed up but recent research discussed at this month’s NRMLA convention said that this 70%, is roughly divided into thirds. One-third, favorable, one-third neutral and one-third unfavorable.
    It remains to be seen what the penetration rate among boomers is going to look like. The existing senior statistic is 2%, but the boomers have barely started becoming eligible. Financial planners point to a fairly large percentage (I have heard as high as 80%) of boomers who will not have sufficient savings/investments etc. to sustain their lifestyle in retirement. Increasing credit card debt among seniors is also becoming a concern. It all points to home equity becoming that population bubble’s 401K.

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