This segment is sponsored by Finance of America Reverse LLC.
AMARILLO, Texas (KAMR/KCIT) —Homeowners have a disconnect between their wallets and their minds.
Despite the fact that 86% of U.S. homeowners say their home value increased from 2022 to 2023, 79% are still as anxious now about the state of the economy as they were last year. This is according to the second annual Home Equity Punch List survey conducted by The Harris Poll on behalf of Finance of America Reverse.
Homeowners’ concerns about the economy remain high and they are more apprehensive about their ability to pay for certain costs when compared to last year, yet many aren’t looking to their housing wealth to help pay for expenses. The survey also found a lack of knowledge about financial products like reverse mortgages that could offer potential solutions, and major differences when comparing age and gender.
Key findings include:
- 61% of homeowners worry about unexpected healthcare costs in retirement, up from 48% in 2022.
- 41% of homeowners feel anxious about their discretionary spending, such as purchasing a new car or taking a trip, up from 32% in 2022.
- 40% of homeowners feel anxious about their ability to pay off debt, up from 36% in 2022.
- 32% of homeowners said they were likely to use a home equity loan, a slight increase from 28% in 2022.
- Only 42% of women know that home equity can help supplement income in retirement, compared to 65% of men.
- 38% of women and 38% of Boomers know that a reverse mortgage can be used to pay off a mortgage, compared to 46% of men and 49% of Gen Z/Millennials.
When combined with research from the National Council on Aging that shows 47 million older households – or more than three in four seniors – do not have the financial resources to cover long-term care services or another financial shock, it’s clear a solution is needed and tapping into home equity could help some older homeowners. In fact, seniors age 62+ have more than $12 trillion in combined home equity – providing an opportunity to allay the financial challenges they are most concerned about.
For more information, please visit: www.far.com