Ramsey calls a federally-insured loan a ‘Rip-Off’
Shannon Hicks -Reverse Mortgage Commentator
President: Reverse Focus, Inc. ? Video Commentator ? Blogger ? Podcaster ? Reverse Mortgage Enthusiast ? P: 800-805-9328
Syndicated radio and television financial pundit Dave Ramsey has attracted a large audience with his no-holds-bar blunt advice for Americans struggling with debt or seeking financial guidance. While Ramsey may be adequately knowledgeable about many topics, most notably debt management, recent comments reveal that he remains woefully ignorant about reverse mortgages.?
A baseless accusation
In a recent column by The Street Ramsey boldly asserts, “Reverse mortgages sound like a good plan — after all, who wouldn’t want a dream retirement funded entirely by their house! But here’s the truth: Reverse mortgages are major rip-offs”. As per previously baseless accusations against the loan Ramsey conveniently never specifies how a reverse mortgage is a bad deal only focusing on the loan’s upfront costs.?
Ironically Ramsey notes, “Homeowners who take out a reverse mortgage put up their house as collateral for the loan — that means you lose your house if you don’t live up to the terms of the loan”. Well, that’s precisely what you have with a traditional mortgage! So are 15- or 30-year mortgage scams as well, Mr. Ramsey?
It’s not the interest rates
“Reverse mortgages are especially risky for seniors because they carry high interest rates. Accruing debt could easily lead to defaulting on the loan and house foreclosure”. Again, a simple Google search would save Mr. Ramsey and Ramsey Solutions the embarrassment of spreading false information- a bad look for any company whose reputation hinges on the financial advice given to listeners and viewers. Also, what’s typically risky and conveniently not mentioned is that for older homeowners with a fixed income, the burden of a monthly mortgage payment is a clear and present risk.
The truth is the rates for today’s Home Equity Conversion Mortgage (HECM) or federally-insured reverse mortgage are quite... [continue reading on HECMWorld]
Mortgage Loan Officer at Movement Mortgage, NMLS #206398 for the state of Virginia.
9 小时前I feel bad for all the people who suffering needlessly in their later years because they listened to him.
VP, Northeast Regional Sales Leader | NMLS #455476 | Mutual of Omaha Mortgage NMLS#1025894
1 天前I've called his show numerous times for the last 20 years to explain where he is "mistaken" and not accurate. They will never allow me or anyone else who calls to talk to Dave or his minions. The sad thing is, if you dont follow his guidelines in every way, he calls you names and belittles people. For a man who claims to follow our Lord Jesus Christ, not a very Christlike way to treat people. It's his way or the highway, he's smarter than everyone else, just ask him!!
Reverse Mortgage Alabama since 2007.Owner, Broker covering Alabama, Tennessee, Mississippi, and Georgia. Mortgage Closing signing agent.
1 天前Everybody I know thinks Dave Ramsey is the smartest person on the face of the Earth. He's got some very good ideas simple like pay off the master stuff first. My problem with Dave Ramsey is he's got a rant for reverse mortgages and he keeps it stockpiled in his brain. I watched the lady call in to Dave Ramsey and as she proceeded to say her very first sentence that was my husband had just passed away, our house is completely paid for, this was pretty covid and there was no way this lady could live on what she made. She also said that she doesn't have anybody to leave her house to at all. And he gave his speech I could see it spinning around in his head and I don't believe he got let her get through her first sentence he definitely definitely didn't listen to her. Money problems paid for a house reverse mortgage nobody to leave it too. Any senior because of this economy that's having trouble shouldn't be listening to Dave Ramsey telling them which credit cards to pay off first and not carry any debt even though he owns a mortgage company. I know Southern church is down here love Ramsey Financial so hopefully this will find my way up North and all the people in the area won't yell at me. Haha
Author: Understanding Reverse and Navigating Reverse
1 天前I've reached out to Dave and his staff and offered to help. I've offered a copy of Understanding Reverse to all of his senior staff. This is sad. As a faith-based business, it is even more critical not to "bear false witness." But there comes a time when pride takes over, and his ego won't allow himself to admit when he's wrong.