NCOA Awareness of Home Equity Products Among Older Homeowners and Financial Advisors

Major findings:

  • Despite the importance of home equity as part of their financial portfolio, older homeowners do not understandand 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.

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