Are Reverse Mortgages Too Difficult for Consumers to Follow?
As a reverse mortgage broker, it can sometimes be difficult to explain to consumers why it is a viable option. A recent report from The National Council on Aging found that most seniors are a bit standoffish when it comes to reverse mortgages.
"'People were able to acknowledge their discomfort and their misunderstanding about the products,' Jay Greenberg, CEO of NCOA Services, LLC, said at last month’s National Reverse Mortgage Lenders Association conference in San Francisco," according to Reverse Mortgage Daily.
Of 1,000 senior homeowners who participated in the study, 58% actually preferred reverse mortgages, according to the report. Once the names of the reverse mortgage products were revealed 68% decided that they would prefer HELOCs.
"While NCOA’s research could seem discouraging to players in the reverse mortgage industry, Greenberg emphasized that the findings illustrate a real willingness among older Americans to explore the option when given the right education," according to Reverse Mortgage Daily.
"Many participants who already had forward lines of credit on their homes admitted they didn’t have a firm grasp on those products, Greenberg said, and the seniors also pointed out multiple positive factors about HECMs."
The most positive takeaway from the study is that there is a willingness to learn. To learn more about the results, click on the image above.