What Dave Ramsey Gets Wrong About Reverse Mortgages

After 15 years of doing this in California and Arizona, I can tell you the biggest miss in blanket anti-reverse advice is treating retirement cash-flow debt and consumer debt as if they behave the same.

This article is not an attack on any individual—it is a response to common claims. For primary sources, use HUD’s HECM hub: HUD.gov HECM and the CFPB: CFPB reverse mortgage.

Where the “never” advice can miss nuance

• Spending other assets first can trigger unnecessary taxes or sequence risk—see vs IRA withdrawal
• Staying put can be cheaper than selling once transaction costs and lifestyle are modeled—vs selling
• Emergency liquidity can be the whole point—line of credit

Where the skepticism is healthy

Closing costs are real. Balance growth is real. Sales pressure is real—red flags. If your plan is sloppy, a reverse mortgage can still be a mistake.

A client I worked with in Scottsdale recently came in convinced all reverse mortgages were predatory, then changed their view after we compared a required $2,900 forward payment against a no-required-payment structure over five years. They told me the key was seeing both options modeled with the same assumptions, not argued ideologically. In my experience working with homeowners in Scottsdale and Phoenix, that side-by-side exercise changes the conversation quickly.

A better decision process than ideology

Compare alternatives with numbers: good idea in 2026? and right for me checklist.

HUD program guidance also confirms HECM counseling is required before closing, which is one reason the product should be evaluated with disclosures and not soundbites.

Frequently asked questions

Should I ignore Ramsey entirely?

No—debt discipline matters; just don’t treat housing wealth like a credit card.

Is a reverse mortgage “stupid” by definition?

That depends on goals, timeline, and alternatives—run illustrations.

What is the best counter-argument?

A coordinated retirement plan with a fiduciary-minded advisor and a CRMP.

Does Ramsey hate all mortgages?

His brand emphasizes debt elimination—useful for many, not universal for 70-year-olds with paid-down homes.

Next steps

Use the free reverse mortgage calculator and take the free readiness assessment. For a numbers-based conversation, use the contact page or about page.

This material is not from HUD or FHA and has not been approved by HUD or any government agency. All reverse mortgage loans are subject to credit and property approval.