Reverse Mortgage - What are your objections?

[Knocker of rocks]

Like annuities, reverse mortgages require a little bit of financial savy to work. And like annuities, most of the issues can be explained by the purchaser not understanding the product, and this is probably even more pronounced in reverse mortgages than in annuitized products.

Dave Ramsey is an interesting character, but I would say that his target audience is one that needs or needed financial protection from themselves. The very people who should also not participate in a reverse mortgage

[Magnum_Willys]

Ideally compare Reverse to Option B - refi and make payments out of the refi money - but you tell a bank your elderly folks have no extra income but are going to make the payments out of the amount borrowed and watch the bankers  eyes get big!

[Stein]

Like annuities, reverse mortgages require a little bit of financial savy to work. And like annuities, most of the issues can be explained by the purchaser not understanding the product, and this is probably even more pronounced in reverse mortgages than in annuitized products.

Dave Ramsey is an interesting character, but I would say that his target audience is one that needs or needed financial protection from themselves. The very people who should also not participate in a reverse mortgage

By the time you get to looking into a reverse, there isn't much Dave Ramsey or anyone else can do as far as advice.  If you are retired, have little income, can't/won't work and little to no assets outside the equity in your house there aren't many options.  I believe that's the selling point for reverse mortgages, you either do that or sell the house and move into a much cheaper house or rent.

[Dan-o]

Like annuities, reverse mortgages require a little bit of financial savy to work. And like annuities, most of the issues can be explained by the purchaser not understanding the product, and this is probably even more pronounced in reverse mortgages than in annuitized products.

Dave Ramsey is an interesting character, but I would say that his target audience is one that needs or needed financial protection from themselves. The very people who should also not participate in a reverse mortgage

By the time you get to looking into a reverse, there isn't much Dave Ramsey or anyone else can do as far as advice.  If you are retired, have little income, can't/won't work and little to no assets outside the equity in your house there aren't many options.  I believe that's the selling point for reverse mortgages, you either do that or sell the house and move into a much cheaper house or rent.

Great point. 

I'm sure it's a good option for some people to stay in their game longer.