AARP recently released one of the most comprehensive reports to date on the state of the reverse mortgage industry. The report (Reverse Mortgages: Niche Product of Mainstream Solution?) includes a wealth of information about consumer attitudes and experiences with reverse mortgages.

One of the more interesting presentations in the report is the listing of the top reasons given by people for considering a reverse mortgage.

Pay off mortgage (20%)
Home repairs/improvements (18%)
Improve quality of life (14%)
Everyday expenses (10%)
Emergencies/unexpected (9%)
Pay off non-mortgage debts (7%)
Health or disability (5%)
Property taxes/insurance (5%)
Financial help to family (2%)
Investments, annuities, or long-term care insurance (1%)
Household chores (1%)

No huge surprises here. Most of the reasons given could be categorized under “financial necessity”, affirming the perceived status of reverse mortgages as being a “last resort” measure. However, the third most popular reason given - improve quality of life - could mean that a fair number of borrowers are taking on reverse mortgages for non-essential things like travel.

A Few More Related Articles of Interest:

More From Fidelity: Reasons Why Retirees Avoid Guaranteed Income Options

AARP - Formerly, American Association of Retired Persons

Welcome to Reverse Mortgage Information

Reasons Why People Don’t Choose Lifetime Payments

HECM Line of Credit Gains in Popularity Among Reverse Mortgage Borrowers