Today Show: Reverse Mortgages Not For Home Repairs

NBC’s the Today show ran a short segment this week featuring a viewer question about a reverse mortgage loan and whether it was the right option for an Oregon couple.

The viewer asks: “My my husband and I have been told by friends we should do the reverse mortgage on our home. We could use some money for repairs on the house, but I’ve heard some bad things about reverse mortgages. We have a VA loan, owe just over 46,000, house is probably worth 115,000.”

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Today Show guest and financial expert David Bach responded to the question, saying that a reverse mortgage is not the solution for home repairs.

“First of all, nobody does a reverse mortgage to fix up their homes, that’s a terrible idea,” Bach said. “A reverse mortgage is for somebody who’s over the age of 62 and you desperately need the income. Basically, you’re getting money back from the bank, but you’re losing all the equity in your home over time. So it’s the absolute wrong thing for you. Even if you want to do a reverse mortgage you [should] go to reversemortgage.org or go to hud.gov for more information. You’re going to actually have to pass and take a course before you’re approved for a reverse mortgage.”.

Written by Elizabeth Ecker

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  • What sage advice. I guess the old adage is as true today as it has been in the past: “When it comes to free advice on TV, ya gits what ya pays for.”

    Besides being bright, articulate, well spoke, and vivacious, this debt free guru and so called financial expert is incompetent when it comes to reverse mortgages.

    Another self proclaimed financial expert proves his worth. Unfortunately most seniors have no idea how truly wrong Dave actually is in his assessment.

  • A reverse mortgage may not have been the best option for these homeowners but it would takes a series of questions and an in-depth analysis of the homeowner’s financial situation to make that determination. Wouldn’t it be great if TV financial advisors could solve all of our monetary problems in a 20 second sound bite? If they are giving this advice to millions of viewers then they should face the same regulatory scrutiny as the reverse mortgage industry has. Where are senator’s Mccaskill and Dodd when you really need them? This is just another sucker punch in the face of the reverse mortgage industry.

  • What is very surprising is that the question was read. This was not a question from a caller which David did not have time to consider. He wanted this question and as an alleged financial expert chose to answer it with what appeared to be no further information from the individual asking the question.

    David is selling a book about being debt free and it shows. Like David Ramsey, David Bach plays off the oversimplified position that all debt is bad. While their position on debt may not be financially sound or wise, it makes David Ramsey a LOT of money. David Bach seems to be a David Ramsey wanna be.

  • Most of my clients use their reverse for repairs. They have lived in their home for over 20 yrs and in come cases 30, that is why they have no mortgage. In addition, it is their homes that need the most repair. By the way it is not anyone’s place to say what is the best use for a reverse. It can be used for anything they want.

  • I actually watched this segment yesterday and am shocked that no one is commenting on his other misrepresentation of the product by stating that borrowers need to pass a test in order to even receive the loan.or how about that only seniors desperate for income. He apparently doesn’t know anything about the HECM Saver product. I am not a lender, but I am certainly tired of “financial experts” misrepresenting the reverse mortgage product. Not all loan programs are good for everyone, people should be advised to seek counseling or see a financial professional … not shoot down a potential viable option.

  • It’s hard to believe the number of things that are wrong with the statement from this Financial Expert.
    If you’re going to talk about reverse mortgages on the Today Show, please do some research first, Mr. Bach.

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