With American Advisors Group (AAG), you’ll discover one of many largest number of choices we’ve seen amongst reverse mortgage firms. Moreover, the corporate has an abundance of on-line instruments designed that can assist you educate your self on the advanced topic of reverse mortgages, together with a calculator that can provide you an thought of how a lot cash chances are you’ll qualify for.
Not all of AAG’s reverse mortgage merchandise can be found in each state, so ensure that to confirm you’re eligible earlier than continuing.
Greatest reverse mortgage lender for customer support
We chosen AAG due to its constructive buyer suggestions, dedication to training, long-standing good status and high-quality choices. AAG has an A score from the Higher Enterprise Bureau (BBB) with a mean of 4.69 out of 5 stars from over 760 opinions. The corporate additionally has a very good observe report for responding to and shutting buyer complaints.
American Advisors Group reverse mortgages professionals and cons
- Emphasis on buyer training
- Versatile disbursement choices
- Robust status and excessive buyer satisfaction
- Not all properties qualify
- Excessive price and charges
Professionals defined
Emphasis on buyer training
Getting a reverse mortgage is a significant monetary resolution that shouldn’t be taken flippantly. There has at all times been controversy and misinformation surrounding the product. A reverse mortgage may be a superb monetary software for sure older adults offered they perceive precisely what they’re moving into and what to anticipate from the method.
To that finish, AAG’s web site offers substantial info on how reverse mortgages work. It does an amazing job explaining who the product is appropriate for and the kinds of reverse mortgages accessible. It additionally addresses ceaselessly requested buyer questions. AAG offers devoted mortgage officers to information debtors via each step of the mortgage software course of and tackle issues and questions.
Anybody can request an AAG reverse mortgage info package to be despatched to them for free of charge. In case you’re nonetheless unsure, you’ll be able to at all times speak to considered one of AAG’s house fairness specialists that can assist you via the method.
Versatile disbursement choices
The versatile disbursement choices permit debtors to decide on the cost technique that fits their wants. A few of these decisions embody lump-sum funds, month-to-month funds, strains of credit score or a mixture of any of those.
AAG additionally gives a reverse mortgage for buy possibility. This permits clients to purchase a brand new house utilizing a reverse mortgage. It’s perfect for these seeking to downsize their properties to be able to match their long run wants.
Robust status and excessive buyer satisfaction
As of October 2023, AAG boasts a 4.69 out of 5 score on the BBB’s web site. AAG obtained greater than 700 buyer opinions. Suggestions on different on-line overview platforms highlights hundreds of shoppers praising AAG’s skilled and supportive buyer expertise.
Cons defined
Not all properties qualify
AAG doesn’t provide reverse mortgages on all kinds of properties. Second properties and trip properties aren’t eligible. As well as, cellular properties and a few condominiums don’t qualify. AAG reverse mortgages can be found just for properties which are main residences. Moreover, to qualify for an AAG reverse mortgage, householders should have substantial fairness or personal the house outright.
Excessive price and charges
Getting an AAG reverse mortgage includes a number of charges, reminiscent of origination charges, closing prices, appraisal prices and lots of others. In some circumstances, these charges can go into the hundreds of {dollars}, relying on the worth of your house.
American Advisors Group reverse mortgage choices
A reverse mortgage is a kind of mortgage that enables a home-owner to transform a portion of their house fairness into money with out promoting their house. Not like a conventional mortgage, in a reverse mortgage the lender makes funds to the home-owner.
Reverse mortgages eradicate the necessity for making month-to-month mortgage funds. Nonetheless, whenever you go away, promote your home, or transfer out, the mortgage should be repaid by you, your partner, a co-borrower, or your property. Householders should be 62 years or older to qualify for a reverse mortgage. Beneath are AAG’s reverse mortgage choices.
Lump-sum payout
A lump-sum payout means you acquire proceeds from your house fairness in a single lump sum. Amongst AAG’s choices, that is the choice that’ll provide the most amount of money. This selection permits you to draw 60% of your accessible funds within the first yr.
Rising line of credit score
A line of credit score permits you to faucet into funds as wanted. Some clients use this as a standby security internet to deal with surprising bills. A major characteristic of the AAG reverse mortgage rising line of credit score providing is that the unused principal will increase over time, which implies the longer the principal goes unused, the extra funds you’ve got accessible.
Jumbo reverse mortgage mortgage
A jumbo reverse mortgage is a proprietary mortgage that allows you to withdraw as much as $4 million in fairness. Proprietary loans are non-public and never backed by authorities insurance coverage. This jumbo mortgage is for these with high-value properties. In case you go for this resolution, you’ll eradicate your mortgage insurance coverage premium and month-to-month mortgage funds. Nonetheless, you’ll proceed to pay property taxes and householders insurance coverage.
Time period or tenure reverse mortgage
Debtors obtain a set month-to-month cost with a time period or tenure reverse mortgage from AAG. For the time period product, you’ll be able to choose the quantity of years you want to obtain funds. With the tenure product, you obtain funds so long as you reside in the home and adjust to AAG’s mortgage phrases.
Reverse for buy
The reverse-for-purchase product is an efficient possibility for householders in search of to downsize or right-size. You need to use your house’s fairness to purchase a brand new house and never incur any month-to-month funds. Nonetheless, you’ll pay property taxes and householders insurance coverage on the brand new property.
American Advisors Group reverse mortgage pricing
You’ll pay a set of upfront charges when getting any sort of reverse mortgage. Included within the reverse mortgage choices, AAG gives rolling these prices into your mortgage quantity to cut back out-of-pocket bills.
Rates of interest normally get probably the most consideration, however that is solely a part of the prices related to a reverse mortgage. The AAG reverse mortgage calculator discovered on the web site may also help you estimate the amount of cash chances are you’ll be eligible to obtain earlier than charges. The greatest reverse mortgage suppliers will at all times be 100% clear about all charges.
Appraisal payment
An appraisal is critical to assign a price to your house and decide the mortgage quantity. Appraisal charges differ by area, worth and residential sort. Based on AAG, the common appraisal payment is $450.
Origination payment
The origination payment refers back to the lender’s working bills related to originating your reverse mortgage. These charges differ primarily based on the lender and your distinctive circumstances. Nonetheless, the Federal Housing Administration (FHA) units limits on origination charges:
- For properties valued at lower than $125,000 or much less, the origination payment restrict is $2,500.
- For properties price greater than $125,000, the lender can cost as much as 2% on the primary $200,000 and as much as 1% of the house’s worth above $200,000, all totaling as much as a most payment of $6,000.
Closing price charges
Closing charges embody any of the next:
- Credit score report
- Flood certification
- Escrow
- Doc preparation
- Recording
- Courier
- Title insurance coverage
- Pest inspection
- Survey
Every of those providers ranges from $20 to $30. Nonetheless, doc preparation may be $150 to $800, and recording can price $75 to $150.
Service payment
There’s normally a service price that covers the projected price of serving your account for the lifetime of the mortgage. FHA caps this payment at $35 month-to-month, however AAG usually waives it.
Counseling payment
Counseling is a needed a part of the reverse mortgage course of. It’s meant to guard older adults, who could be a financially weak demographic. Counseling addresses the mortgage’s benefits, disadvantages and eligibility necessities. Based on the Nationwide Reverse Mortgage Lenders Affiliation (NRMLA), these charges common $125.
Rates of interest
AAG rates of interest for reverse mortgages might be mounted or adjustable. A hard and fast rate of interest is chosen from the onset and stays unchanged via the lifetime of the mortgage. An adjustable rate of interest is tied to a monetary market index or margin, such because the London Interbank Provided Price, or LIBOR. LIBOR is the premise for all House Fairness Conversion Mortgages (HECM) reverse mortgage adjustable charges.
American Advisors Group reverse mortgage monetary stability
In March 2023, Finance of America Reverse (FOA) acquired most of AAG’s belongings. Fitch Scores, a significant credit standing company, provides FOA a B- score as of December 2022. A B- score implies that the corporate can repay its money owed, however there’s a materials threat of default sooner or later, and its capacity to repay is weak to deterioration of enterprise and financial situations.
American Advisors Group reverse mortgage accessibility
Availability
AAG reverse mortgages, like all reverse mortgages, can be found to householders not less than 62 years previous. Debtors should personal the house or have substantial fairness and use it as their main residence. Moreover, the house should be in fine condition and meet required property requirements. You additionally can’t owe any federal debt, reminiscent of taxes or federal scholar loans. Lastly, you will need to obtain counseling from a U.S. Division of Housing and City Improvement (HUD) -approved reverse mortgage counseling company. These are the naked minimal necessities for entry.
Contact info
The AAG web site gives a number of alternatives for contact. You may fill out a web-based type to request an data package. To get the package, you’ll want to supply the next info:
- Full identify
- Avenue tackle
- Cellphone quantity
- Age
- Estimated property worth
- Mortgage steadiness to be paid off (if any)
Moreover, you’ll be able to contact AAG by telephone at 800-224-9121. The corporate can tackle your questions or issues 24 hours a day.
Person expertise
AAG’s web site offers a number of useful options, together with a mortgage calculator, buyer testimonials and intensive instructional assets. As well as, the web site works nicely on cellular gadgets and is accessible to these with disabilities.
American Advisors Group reverse mortgage buyer satisfaction
As of August 2023, AAG has a 4.69 out of 5 score on BBB’s web site from over 700 buyer opinions. These scores level to an exceptionally excessive stage of buyer satisfaction. The corporate has been BBB-accredited since 2005 and at present holds an A score.
On-line overview websites additionally present that AAG has wonderful customer support. Most AAG clients remark that their expertise was skilled and nice and that they felt supported.
American Advisors Group reverse mortgage FAQs
American Advisors Group (AAG) is a monetary providers firm specializing in reverse mortgages. The corporate is without doubt one of the largest and most well-known reverse mortgage lenders in the US. AAG offers House Fairness Conversion Mortgage (HECM) loans, which the Federal Housing Administration (FHA) insures, providing protections to lenders and debtors.
How does an AAG reverse mortgage work?
A reverse mortgage is a kind of house mortgage for householders who’re 62 years previous or older. It permits them to show a number of the fairness of their house into money. The house in query needs to be your main residence, and you will need to have substantial fairness or you will need to personal the house outright. In some circumstances you’ll be able to refinance a reverse mortgage.
Is American Advisors Group (AAG) legit?
AAG is a professional and well-established monetary providers firm. AAG has operated since 2004 and is without doubt one of the largest and most well-known reverse mortgage lenders. AAG originates House Fairness Conversion Mortgages (HECM) — the extra formal identify for reverse mortgages — insured by the FHA. As well as, AAG points HECM securities insured by the Authorities Nationwide Mortgage Affiliation (GNMA or Ginnie Mae).
Are there any restrictions on how I can use my reverse mortgage funds?
No. You need to use the funds to repay money owed, complement your social safety and retirement earnings, make wanted house repairs, or to cowl some other want you’ll have.
How we evaluated American Advisors Group reverse mortgage
We checked out a couple of important elements when evaluating reverse mortgage lenders, together with:
- Product choices: We assessed the number of accessible merchandise and the way they profit householders.
- Buyer opinions: We most popular lenders with robust buyer scores and few complaints.
- Regulatory actions: We chosen firms with few regulatory actions in opposition to them, particularly ones associated to poor customer support or untrustworthy gross sales and promoting practices.
- On-line presence: We most popular lenders with a sturdy on-line presence that informs and engages mortgage debtors.
Abstract of Cash’s American Advisors Group reverse mortgage overview
American Advisors Group (AAG) is a good monetary providers firm offering older grownup householders with reverse mortgages.
As with all loans, you need to take into account a number of professionals and cons of reverse mortgages earlier than selecting a lender. AAG does a very good job of offering instructional assets and knowledgeable advisor to information you thru the method. As well as, AAG gives versatile cost choices, together with a mortgage-free house buy possibility. Nonetheless, not all properties qualify, and there are excessive prices and charges.
Nonetheless, the Higher Enterprise Bureau scores and hundreds of on-line opinions show that AAG’s clients are happy with their expertise with the corporate.
AAG is a member of the Nationwide Reverse Mortgage Lenders Affiliation. The corporate’s NMLS ID is 2285.
