IDEAS home Printed from https://ideas.repec.org/a/oup/geronb/v75y2020i4p869-878..html
   My bibliography  Save this article

The Relationship Between Reverse Mortgage Borrowing, Domain and Life Satisfaction

Author

Listed:
  • Cäzilia Loibl
  • Donald R Haurin
  • Julia K Brown
  • Stephanie Moulton
  • Deborah Carr

Abstract

ObjectivesReverse mortgages allow adults aged 62 years and older to borrow against the equity in their homes without incurring monthly loan repayments. This study examines the relationship of reverse mortgage borrowing with older adults’ satisfaction with their financial situation, housing, health, and daily life/leisure as well as with life as a whole.MethodA new national data set of 1,088 older adults, comprised of loan data, credit histories, and responses to a phone survey, was created. Our estimation strategy compares reverse mortgage borrowers to older adults who obtained mandatory counseling but not a reverse mortgage.ResultsReverse mortgage borrowers have significantly higher financial and housing satisfaction compared to nonborrowers; no differences were found for health, daily life/leisure, and general satisfaction. These satisfaction domains contribute differently to general satisfaction for reverse mortgage borrowers relative to nonborrowers: housing satisfaction has a greater influence for borrowers and health a greater influence for nonborrowers.DiscussionOur study provides new knowledge about the longer-term outcomes of reverse mortgage borrowers. The positive association of reverse mortgage borrowing for housing and financial satisfaction and, in turn, general satisfaction, provides insights regarding borrower experiences with this controversial financial tool.

Suggested Citation

  • Cäzilia Loibl & Donald R Haurin & Julia K Brown & Stephanie Moulton & Deborah Carr, 2020. "The Relationship Between Reverse Mortgage Borrowing, Domain and Life Satisfaction," The Journals of Gerontology: Series B, The Gerontological Society of America, vol. 75(4), pages 869-878.
    • Handle: RePEc:oup:geronb:v:75:y:2020:i:4:p:869-878.
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1093/geronb/gby096
    Download Restriction: Access to full text is restricted to subscribers.
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Alessandro V. M. Oliveira & Bruno F. Oliveira & Moises D. Vassallo, 2024. "Airport service quality perception and flight delays: examining the influence of psychosituational latent traits of respondents in passenger satisfaction surveys," Papers 2401.02139, arXiv.org.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:oup:geronb:v:75:y:2020:i:4:p:869-878.. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Oxford University Press (email available below). General contact details of provider: https://academic.oup.com/psychsocgerontology .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.