Suze Orman: Don’t Get a Reverse Mortgage “Just Because”

In a financial advice segment published by CNBC earlier this month, adviser Suze Orman addresses a reader question about whether a reverse mortgage is right for the viewer and her husband. The viewer, whose husband is considering the reverse mortgage, says she is skeptical about the option.

The couple should not get the reverse mortgage “just because he wants it,” Orman says.

Advertisement

The viewer and her husband own their home outright and are retired. Without any particular need for the proceeds from a reverse mortgage, Orman says, the couple should not take out a reverse mortgage.

Orman explains that the loan can be expensive and that the couple will face interest on the proceeds if and when they leave the home. Because there is no particular need for the mortgage, she advises the couple against the decision.

View the CNBC segment featuring Suze Orman. (The reverse mortgage viewer question appears around the 4-minute mark in the video.)

Written by Elizabeth Ecker

Join the Conversation (6)

see all

This is a professional community. Please use discretion when posting a comment.

  • In this case I agree with Susan (her given name) at least in part.  If one spouse does not trust the other as to how proceeds may be spent, there are more fundamental issues in the marriage than the matter of getting or not getting a HECM.

    Susan also seems undereducated on Savers.  Someone needs to sit down with her and discuss the current world of HECMs.  She may still conclude the same thing but at least she will know.

    There are many reasons why a couple should NOT get a reverse mortgage this was clearly one.  

  • In this case I agree with Susan (her given name) at least in part.  If one spouse does not trust the other as to how proceeds may be spent, there are more fundamental issues in the marriage than the matter of getting or not getting a HECM.

    Susan also seems undereducated on Savers.  Someone needs to sit down with her and discuss the current world of HECMs.  She may still conclude the same thing but at least she will know.

    There are many reasons why a couple should NOT get a reverse mortgage this was clearly one.  

  • For reference, the HECM discussion begins at the 4:04 mark in the video.

    I agree with Mr. Veale. However, this shows the need for continued funding for HECM counseling. The caller should be on the phone with a specialist that can explain the benefits of the HECM SAVER LOC.

    Some in the industry have already emailed Ms. Orman. But unfortunately, the Financial Planning community is still unaware of how this tool can be used in tandem with traditional retirement methods to extend the borrower’ assets over their lifetime.

  • For reference, the HECM discussion begins at the 4:04 mark.

    I agree with Mr. Veale. However, this shows the need for continued funding for HECM counseling. This caller should be on the phone with a specialist that can explain the benefits of a HECM SAVER LOC.

    While some in the industry have already emailed Ms. Orman, the Financial Planning community is still unaware that HECM products can be used in tandem with traditional retirement plans. When used properly, they can enhance the quality of their retirement years and extend their assets over a longer period of time.

  • I have always included in my presentations that a reverse mortgage is an appropriate consideration if one has a financial goal and an inability to reach it. No unobtainable financial goal, “walk on by.”

string(96) "https://reversemortgagedaily.com/2011/07/20/suze-orman-dont-get-a-reverse-mortgage-just-because/"

Share your opinion