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Here’s the current boxscore of personal finance expert’s stated opinions on reverse mortgages:
| Personal Finance Expert | What They Think of Reverse Mortgages | |
| Terry Savage - Chicago Sun-Times |  |
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| M.P. Dunleavey - New York Times |  |
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| Dave Ramsey - Radio Host | |
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| Walter Updegrave - MONEY Magazine | |
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| Thomas Kostigen - MarketWatch | |
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| Jonathan Clements - Wall Street Journal | |
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| 3 | 3 | |
| Terry Savage - Chicago Sun-Times |
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| Article (Date): | Reverse mortgage has no downside for seniors (May 15, 2006) | ||
| Representative Quote: | "...I want to let you know that's exactly what I did for my own 84-year-old father a few months ago when I helped him take out a reverse mortgage on his paid-up retirement condo. So you see, I'm putting my money where my mouth is. Or to be more accurate, I helped my dad to put his own money in his pocket -- just as I've been advising you to consider. This kind of financial independence is priceless, and well-deserved. Why shouldn't your house pay you back for all the money you've put into over the years - especially with the guarantee that you can never lose the roof over your head?" | ||
| M.P. Dunleavey - New York Times |
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| Article (Date): | A Mortgage in Reverse: Debtor Beware (February 11, 2006) | ||
| Representative Quote: | "Of course, that basic explanation is rosier than the reality, which is that these loans are annoyingly complicated. Nonetheless, despite breathtaking upfront costs and head-spinning restrictions, reverse mortgages are ever more popular...If you don't mind losing a chunk of your equity to fees, these loans have a certain appeal. But before you consider a reverse mortgage as a cornerstone of your own financial plans or of your parents' plans, do as much homework as you can." | ||
| Dave Ramsey - Radio Host |
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| Article (Date): | Answer to Question: "What is a reverse mortgage?" (Website content as of 6/11/06) | ||
| Representative Quote: | "Reverse mortgages are normally offered to the elderly. This mortgage plan disgusts Dave. Old people working hard their entire lives only to finish up being in debt with their home on the line is an awful concept. The problem is not only are you going into debt with this kind of mortgage, but also the value of your home decreases in value. The equity in the home drops and you're going into debt. How much sense does this make? This concept goes against all principles of building wealth and smart asset management." | ||
| Walter Updegrave - MONEY Magazine |
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| Article (Date): | Are reverse mortgages a good deal? (February 17, 2006) | ||
| Representative Quote: | "So if you think money from your home can significantly improve your quality of life in retirement, by all means look into a reverse mortgage. Just be sure that before you sign up that this boost in your living standard comes at a cost you feel is acceptable - and that you're okay knowing you won't be leaving the house as a legacy to your son or other heirs." | ||
| Thomas Kostigen - MarketWatch |
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| Article (Date): | About-face on reverse mortgages (January 20, 2006) | ||
| Representative Quote: | "These are notoriously bad deals for people in all but the soft sense: they get to live in their homes for the rest of their lives...the poignancy of people's circumstances is trumping sound financial planning. A quick thumbnail calculation shows you could gain more by selling your home, moving into a rental or less expensive house -- and putting your money in ultra-safe Treasury bills. This would eclipse any reverse mortgage calculation." | ||
| Jonathan Clements - Wall Street Journal |
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| Article (Date): | Save Your Retirement With a Reverse Mortgage (December 23, 2003) | ||
| Representative Quote: | "Costs aside, reverse mortgages seem like a decent product. As long as you don't move or sell your house, the loan doesn't have to be repaid until after your death. At that point, the amount owed, including accrued interest, can't exceed your home's value...Because of the costs, I can't get wildly excited about today's reverse mortgages. But I get even less excited by the idea of seniors scrimping and saving unnecessarily. Need a reverse mortgage to put the shine back on your golden years? Yeah, I'd probably go for it." |
If you have information about the written opinions of other well-known expert’s or, if you feel the opinions above have changed, please leave a comment.