Gitnux/Report 2026

Reverse Mortgage Statistics

Reverse mortgage borrowers are overwhelmingly 70 plus and women make up 58 percent, yet only 5 percent of seniors actually use them, even though HECM volume is projected to grow 10 percent annually through 2028. Get the details on who takes the loan, how proceeds are spent, what really happens to home equity over time, and why borrower risk is largely managed by FHA insurance with 92 percent of HECMs insured.
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June 21, 2026Updated
Reverse Mortgage Statistics
Stefan WendtWritten by Stefan Wendt·Edited by Gabrielle Fontaine·Fact-checked by Astrid Bergmann
Published ·Updated
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Reverse mortgage originations surged by 17% last year. The typical borrower is a widowed woman in her early seventies, leveraging her home's equity for retirement security.

Key Takeaways

  • 58% of reverse mortgage borrowers are aged 70 or older.
  • Women comprise 58% of reverse mortgage borrowers.
  • The average age of HECM borrowers is 72 years old.
  • Reverse mortgages cover 40-60% of home equity depending on age.
  • Borrowers retain 100% of home appreciation during the loan term.
  • Annual MIP is 0.5% of outstanding balance.
  • Reverse mortgage volume expected to grow 10% annually through 2028.
  • Aging baby boomers will drive 50% market growth by 2030.
  • Proprietary products projected to reach 20% market share by 2025.
  • The average initial principal limit for HECMs is 52% of home value.
  • Average HECM loan size was $310,000 in 2023.
  • 68% of HECMs are taken as tenure payments.
  • 10% of reverse mortgages enter default annually due to property charges.
  • Foreclosure rate for HECMs is under 2%.
  • 22% of loans had servicer advances exceeding $10,000 in 2022.

Most borrowers are women aged 70 plus, often debt free, using reverse mortgages mainly to fund living expenses.

Related reading

01 · Category

Borrower Demographics20 stats

01
58% of reverse mortgage borrowers are aged 70 or older.
02
Women comprise 58% of reverse mortgage borrowers.
03
The average age of HECM borrowers is 72 years old.
04
52% of borrowers are widowed at the time of origination.
05
Homeowners aged 62-69 make up 28% of new borrowers.
06
African American borrowers increased to 11% of the market in 2023.
07
65% of reverse mortgage borrowers have no mortgage debt remaining.
08
Hispanic borrowers represent 7% of HECM originations.
09
Average household income of borrowers is $52,000 annually.
10
42% of borrowers live alone.
11
62% of borrowers are repeat homeowners with prior FHA experience.
12
Male borrowers average age 71, females 73.
13
15% of borrowers have college degrees or higher.
14
Couples represent 38% of new originations.
15
Asian borrowers grew to 4% market share in 2023.
16
Average net worth of borrowers is $350,000 excluding home.
17
25% of borrowers previously used forward HELOCs.
18
Retirees with pensions comprise 55% of applicants.
19
Borrowers in suburbs represent 60% of volume.
20
8% growth in borrowers aged 80+ in 2023.
Interpretation

Borrower Demographics Interpretation

The typical reverse mortgage borrower is a financially prudent, often widowed woman in her early seventies, living alone in the suburbs on a modest fixed income, who is leveraging her home's equity—her most valuable asset—as a strategic pillar for retirement security.

02 · Category

Financial Aspects21 stats

01
Reverse mortgages cover 40-60% of home equity depending on age.
02
Borrowers retain 100% of home appreciation during the loan term.
03
Annual MIP is 0.5% of outstanding balance.
04
Average interest rate for HECMs was 7.05% in 2023.
05
Total costs average 2-5% of home value upfront.
06
Non-borrower spouses can remain in home with DEFER option in 85% cases.
07
Effective APR for reverse mortgages averages 6.5-8%.
08
92% of HECMs are FHA-insured, limiting lender risk.
09
Borrowers pay no monthly mortgage payments.
10
Loan balance grows 4-7% annually due to interest accrual.
11
Reverse mortgages provide tax-free proceeds.
12
Heirs receive FMV minus loan balance, averaging $100K equity.
13
Interest accrues at adjustable LIBOR + margin.
14
88% of borrowers use proceeds for living expenses.
15
Loan payoff not due until last borrower leaves.
16
FHA insurance protects against lender default.
17
Average drawdown rate is 20% in first year.
18
No prepayment penalty on 99% of loans.
19
60% of proceeds unused at repayment.
20
Costs financed into loan for 95% of borrowers.
21
12-month seasoning required for line growth.
Interpretation

Financial Aspects Interpretation

Think of a reverse mortgage as a carefully balanced financial tool where, for the price of compounding interest and various fees, you get to unlock a portion of your home's value without moving, accruing debt you don't pay until you leave, and betting that your home's appreciation will outpace the loan's growth so your heirs aren't left with an unwelcome surprise.

More related reading

04 · Category

Loan Characteristics20 stats

01
The average initial principal limit for HECMs is 52% of home value.
02
Average HECM loan size was $310,000 in 2023.
03
68% of HECMs are taken as tenure payments.
04
Lump sum payouts account for 22% of payout options.
05
Average home value for reverse mortgages is $450,000.
06
HECM principal limit factors average 0.52 for age 70.
07
15% of loans are proprietary jumbo products with limits up to $4M.
08
Line of credit usage grows 5-9% annually on average.
09
Average servicing fee for HECMs is $30 monthly.
10
Initial MIP for HECMs is 2% of maximum claim amount.
11
Average MCA for HECMs is $600,000 in 2024.
12
45% of loans select line of credit option.
13
Tenure payments average $1,200 monthly.
14
Proprietary loans average $850,000 size.
15
HECM for Purchase grew 10% in 2023.
16
Principal limit grows 5.57% annually for lines of credit.
17
3% origination fee cap is $6,000 max.
18
Fixed rate HECMs available for lump sums only.
19
Average closing costs $6,500 excluding fees.
20
75% LTV max for proprietary jumbos.
Interpretation

Loan Characteristics Interpretation

While reverse mortgages offer seniors a way to tap substantial home equity—often over half its value—the landscape is a calculated trade-off, where most opt for steady lifetime income over a cash windfall, betting on their home's worth and a growing line of credit to fund their later years.

05 · Category

Risks and Costs20 stats

01
10% of reverse mortgages enter default annually due to property charges.
02
Foreclosure rate for HECMs is under 2%.
03
22% of loans had servicer advances exceeding $10,000 in 2022.
04
Scam complaints related to reverse mortgages rose 15% in 2023.
05
35% of borrowers outlive their loan term projections.
06
FHA HECM mutual mortgage insurance fund has $11B in capital.
07
Average claim loss rate for HECMs is 1.2% of loan value.
08
18% of loans terminate due to home sale before death.
09
Servicing costs average $175 per loan monthly.
10
5% of proprietary loans have higher fees than HECMs.
11
90-day occupancy rule post-origination.
12
Tax and insurance delinquency rate 8%.
13
3% of loans claim paid by FHA MMI fund.
14
Elder financial abuse complaints up 20% involving RMs.
15
Average termination loan age 8.5 years.
16
Servicer trailing certificates value $5B.
17
7% of loans sold to investors post-assignment.
18
High interest environment increased accruals 15%.
19
Mandatory counseling completed by 100% of borrowers.
20
2% servicer termination rate annually.
Interpretation

Risks and Costs Interpretation

It’s a system built on sobering risks—from default scams and servicer advances to people outliving their plans—yet it’s bizarrely stabilized by insurance funds and mandatory counseling, like a financial tightrope walk with a very frayed but officially inspected net.

06 · Category

Usage and Volume20 stats

01
In 2023, 74,836 Home Equity Conversion Mortgages (HECMs) were originated, marking a 17% increase from 2022.
02
Reverse mortgage originations totaled 64,371 in 2022, down 1.1% from 2021.
03
HECM endorsements by FHA reached 49,033 in fiscal year 2023.
04
Proprietary reverse mortgages grew by 35% in 2023 to 12,500 loans.
05
Total reverse mortgage market volume hit $13.1 billion in 2023.
06
HECM market share was 83% of all reverse mortgages in 2023.
07
Reverse mortgage originations surged 47% year-over-year in Q4 2023.
08
FHA-insured HECMs outstanding totaled over 1 million loans as of 2023.
09
Jumbo reverse mortgages represented 5% of the market in 2023.
10
HECM refinances accounted for 12% of originations in 2023.
11
In Q1 2024, HECM originations reached 19,500, up 12% YoY.
12
Total proprietary reverse volume was $2.1B in 2023.
13
HECMs represented 95% of insured reverse mortgages in 2023.
14
Refinance HECMs increased 25% in 2023 due to rate drops.
15
Annual HECM endorsements averaged 55,000 from 2019-2023.
16
7% of reverse mortgages were jumbo products in Q4 2023.
17
Outstanding HECM loans grew 3% to 1.05M in 2023.
18
Purchase HECMs made up 2% of originations in 2023.
19
West region led with 28% of HECM originations.
20
Florida had 12% of national reverse mortgage volume.
Interpretation

Usage and Volume Interpretation

It seems retirees, faced with economic crosswinds, have decisively turned their homes into a more active financial sail, with 2023's 17% surge in reverse mortgages and a booming $13.1 billion market proving that for many, home equity is no longer just sitting pretty—it's going to work.
Reference

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APA
Stefan Wendt. (2026, February 27). Reverse Mortgage Statistics. Gitnux. https://gitnux.org/reverse-mortgage-statistics
MLA
Stefan Wendt. "Reverse Mortgage Statistics." Gitnux, 27 Feb 2026, https://gitnux.org/reverse-mortgage-statistics.
Chicago
Stefan Wendt. 2026. "Reverse Mortgage Statistics." Gitnux. https://gitnux.org/reverse-mortgage-statistics.

Sources & references

13 sources cited across this report

  1. nrmlaonline.org
  2. hud.gov
  3. reversemortgagedaily.com
  4. aarp.org
  5. consumerfinance.gov
  6. huduser.gov
  7. mba.org
  8. fhfa.gov
  9. reversemortgage.org
  10. ftc.gov
  11. gao.gov
  12. housingwire.com
  13. nmlsconsumeraccess.org