Why Should I NOT Get a Reverse Mortgage?

Ramsey Everyday Millionaires

Ramsey Network

Careers, Investing, Business

4.6 • 3.6K Ratings

🗓️ 28 March 2022

⏱️ 4 minutes

🔗️ Recording | iTunes | RSS

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Summary

Listen to how ordinary people built extraordinary wealth - and how you can too. You’ll learn how millionaires live on less than they make, avoid debt, invest, are disciplined and responsible! Featuring hosts from the Ramsey Network: Dave Ramsey, Ken Coleman, Rachel Cruze, John Delony, and George Kamel.

Transcript

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0:00.0	You're listening to Ramsay Everyday Millionaires, where we talk retirement, building wealth,
0:10.5	and outrageous generosity.
0:13.8	Today's question comes from Mark and Missouri.
0:15.8	He said, I know you hate reverse mortgages, but my question is this.
0:20.2	I'm 57, and my wife is 32.
0:23.2	We have no kids.
0:24.3	I was thinking of getting a reverse mortgage to enjoy my money while I can.
0:28.8	Let's say I live another 20 years, then my wife inherits the house and lives there the
0:32.5	rest of her life.
0:34.0	Why shouldn't I get a reverse mortgage?
0:37.8	Well, because markets are not going to work like you think it's going to work, you just
0:42.6	picked up the high points that the sales job gave you and you didn't get the reality.
0:47.3	The reality is the interest rates that the reverse mortgages are calculated on are almost
0:51.7	double what traditional interest rates are on a mortgage.
0:56.2	The fees are more than double when you go to close on the reverse mortgage.
1:01.4	They get you coming, they get you going.
1:04.8	The foreclosure rate on reverse mortgages is 10 fold, the national average for traditional
1:11.6	mortgages.
1:12.6	Wait, wait, wait, wait.
1:13.6	They're paying me.
1:14.6	How could I get foreclosed on?
1:16.8	When they run out of equity, by the way, it's only 65% of the equity that you can take
	...

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