AAG Reverse Mortgage Review | Money


With American Advisors Group (AAG), you’ll discover one of many largest number of choices we’ve seen amongst reverse mortgage corporations. Moreover, the corporate has an abundance of on-line instruments designed that will help you educate your self on the complicated topic of reverse mortgages, together with a calculator that may give you an thought of how a lot cash you might qualify for.

Not all of AAG’s reverse mortgage merchandise can be found in each state, so make sure that to confirm you’re eligible earlier than continuing.

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Greatest reverse mortgage lender for customer support

We chosen AAG due to its constructive buyer suggestions, dedication to training, long-standing good fame 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 monitor document for responding to and shutting buyer complaints.

American Advisors Group reverse mortgages professionals and cons

  • Emphasis on buyer training

  • Versatile disbursement choices
  • Robust fame and excessive buyer satisfaction
  • Not all properties qualify

  • Excessive price and charges

Professionals defined

Emphasis on buyer training

Getting a reverse mortgage is a serious monetary resolution that shouldn’t be taken frivolously. There has at all times been controversy and misinformation surrounding the product. A reverse mortgage may be a superb monetary device for sure older adults supplied 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 ideal job explaining who the product is appropriate for and the sorts of reverse mortgages obtainable. It additionally addresses ceaselessly requested buyer questions. AAG offers devoted mortgage officers to information debtors by each step of the mortgage utility course of and deal with issues and questions.

Anybody can request an AAG reverse mortgage info package to be despatched to them for free of charge. In the event you’re nonetheless undecided, you possibly can at all times discuss to one in every of AAG’s residence fairness specialists that will help you by the method.

Versatile disbursement choices

The versatile disbursement choices permit debtors to decide on the fee technique that fits their wants. A few of these selections embody lump-sum funds, month-to-month funds, strains of credit score or a mix of any of those.

AAG additionally presents a reverse mortgage for buy choice. This permits prospects to purchase a brand new residence utilizing a reverse mortgage. It’s preferrred for these seeking to downsize their properties in an effort to match their long run wants.

Robust fame and excessive buyer satisfaction

As of October 2023, AAG boasts a 4.69 out of 5 score on the BBB’s web site. AAG acquired greater than 700 buyer opinions. Suggestions on different on-line evaluation platforms highlights hundreds of shoppers praising AAG’s skilled and supportive buyer expertise.

Cons defined

Not all properties qualify

AAG doesn’t supply reverse mortgages on all sorts of properties. Second properties and trip properties aren’t eligible. As well as, cell 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, owners should have substantial fairness or personal the house outright.

Excessive price and charges

Getting an AAG reverse mortgage includes a number of charges, resembling origination charges, closing prices, appraisal prices and plenty of others. In some instances, these charges can go into the hundreds of {dollars}, relying on the worth of your own home.

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American Advisors Group reverse mortgage choices

A reverse mortgage is a kind of mortgage that enables a house owner to transform a portion of their residence fairness into money with out promoting their residence. In contrast to a standard mortgage, in a reverse mortgage the lender makes funds to the house owner.

Reverse mortgages eradicate the necessity for making month-to-month mortgage funds. Nevertheless, while you move away, promote your home, or transfer out, the mortgage should be repaid by you, your partner, a co-borrower, or your property. Owners should be 62 years or older to qualify for a reverse mortgage. Under are AAG’s reverse mortgage choices.

Lump-sum payout

A lump-sum payout means you gather proceeds from your own home fairness in a single lump sum. Amongst AAG’s choices, that is the choice that’ll provide the most amount of money. This feature lets you draw 60% of your accessible funds within the first yr.

Rising line of credit score

A line of credit score lets you faucet into funds as wanted. Some prospects use this as a standby security web to deal with surprising bills. A major function 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 may have obtainable.

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 the event you go for this answer, you’ll eradicate your mortgage insurance coverage premium and month-to-month mortgage funds. Nevertheless, you’ll proceed to pay property taxes and owners insurance coverage.

Time period or tenure reverse mortgage

Debtors obtain a hard and fast month-to-month fee with a time period or tenure reverse mortgage from AAG. For the time period product, you possibly can 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 effective choice for owners looking for to downsize or right-size. You need to use your own home’s fairness to purchase a brand new residence and never incur any month-to-month funds. Nevertheless, you’ll pay property taxes and owners 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 presents rolling these prices into your mortgage quantity to cut back out-of-pocket bills.

Rates of interest often 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 will help you estimate the amount of cash you might be eligible to obtain earlier than charges. The best reverse mortgage suppliers will at all times be 100% clear about all charges.

Appraisal payment

An appraisal is important to assign a price to your own home and decide the mortgage quantity. Appraisal charges differ by area, worth and residential sort. In keeping with 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 based mostly on the lender and your distinctive circumstances. Nevertheless, 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 value 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.
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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. Nevertheless, doc preparation may be $150 to $800, and recording can price $75 to $150.

Service payment

There’s often 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 essential a part of the reverse mortgage course of. It’s meant to guard older adults, who could be a financially susceptible demographic. Counseling addresses the mortgage’s benefits, disadvantages and eligibility necessities. In keeping with the Nationwide Reverse Mortgage Lenders Affiliation (NRMLA), these charges common $125.

Rates of interest

AAG rates of interest for reverse mortgages could possibly be fastened or adjustable. A set rate of interest is chosen from the onset and stays unchanged by the lifetime of the mortgage. An adjustable rate of interest is tied to a monetary market index or margin, such because the London Interbank Supplied Fee, or LIBOR. LIBOR is the idea 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 serious 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 danger of default sooner or later, and its means to repay is susceptible to deterioration of enterprise and financial circumstances.

American Advisors Group reverse mortgage accessibility

Availability

AAG reverse mortgages, like all reverse mortgages, can be found to owners at the least 62 years outdated. 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, resembling taxes or federal scholar loans. Lastly, you have to obtain counseling from a U.S. Division of Housing and City Growth (HUD) -approved reverse mortgage counseling company. These are the naked minimal necessities for entry.

Contact info

The AAG web site presents a number of alternatives for contact. You possibly can fill out a web based kind to request an information package. To get the package, you’ll want to supply the next info:

  • Full identify
  • Road deal with
  • Cellphone quantity
  • Age
  • Estimated property worth
  • Mortgage stability to be paid off (if any)

Moreover, you possibly can contact AAG by telephone at 800-224-9121. The corporate can deal with 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 in depth academic assets. As well as, the web site works properly on cell gadgets and is accessible to these with disabilities.

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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 evaluation websites additionally present that AAG has glorious customer support. Most AAG prospects remark that their expertise was skilled and nice and that they felt supported.

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American Advisors Group reverse mortgage FAQs

American Advisors Group (AAG) is a monetary providers firm specializing in reverse mortgages. The corporate is likely 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 residence mortgage for owners who’re 62 years outdated or older. It permits them to show a few of the fairness of their residence into money. The house in query ought to be your main residence, and you have to have substantial fairness or you have to personal the house outright. In some instances you possibly can refinance a reverse mortgage.

Is American Advisors Group (AAG) legit?

AAG is a official and well-established monetary providers firm. AAG has operated since 2004 and is likely 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 revenue, make wanted residence repairs, or to cowl another want you could have.

How we evaluated American Advisors Group reverse mortgage

We checked out a couple of important components when evaluating reverse mortgage lenders, together with:

  • Product choices: We assessed the number of obtainable merchandise and the way they profit owners.
  • Buyer opinions: We most popular lenders with robust buyer scores and few complaints.
  • Regulatory actions: We chosen corporations 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 evaluation

American Advisors Group (AAG) is a good monetary providers firm offering older grownup owners with reverse mortgages.

As with all loans, you need to think about a number of pros and cons of reverse mortgages earlier than selecting a lender. AAG does a very good job of offering academic assets and an expert advisor to information you thru the method. As well as, AAG presents versatile fee choices, together with a mortgage-free residence buy choice. Nevertheless, not all properties qualify, and there are excessive prices and charges.

However, the Higher Enterprise Bureau scores and hundreds of on-line opinions show that AAG’s prospects 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.



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