But very few want to sell their house to get their equity. Why?
Data from American Advisors Group’s latest report has revealed that most older Americans have no plans to sell their home, and those who still have a mortgage are looking to use the equity they’ve built to eliminate their monthly payment.
According to AGG’s survey of over 1,500 homeowners aged 60-75, four in five seniors (82%) said that they want to live in their current home for the rest of their lives if they could. In addition, half (50%) feel that the pandemic made them more inclined to live at home instead of moving to an assisted living facility.
“Our studies have shown that seniors in this country have a strong attachment to their home, and the pandemic only strengthened that bond,” said AAG chief marketing officer Martin Lenoir. “It’s no secret that many seniors have built substantial equity in their homes after years of ownership, but what is interesting is that very few want to sell their house to obtain that money. For seniors, the comfort, safety and independence of their home outweigh the desire to move, and that’s why we’re seeing so many older Americans interested in reverse mortgages.”
From a financial standpoint, almost three in four (73%) seniors consider their homes as their most valuable asset. The aggregate value of senior home equity has hit $9.23 trillion in the first quarter of 2021, according to the National Reverse Mortgage Lenders Association.
With the increasing opportunity for reverse mortgages, 55% of senior homeowners had tapped into their equity to pay off their mortgage, and 40% said they would eliminate their mortgage using their home equity if they could.
AAG’s survey was conducted in June. All participants were selected randomly, with age and homeownership being the only qualifying factors.