AAG Reverse Mortgages | finder.com

AAG reverse mortgage review

If you’re considering a reverse mortgage, see if AAG is right for you.

Once you’ve retired, it may be difficult to get ahead of your finances without a steady income. Before you look into personal loans, or even another job, consider a reverse mortgage. If you own a home you can supplement your retirement with equity from your home. AAG specializes in Home Equity Conversion Mortgage (HECM) reverse mortgages and could help you stay in your home.

Who is AAG and what do they do?

Since 2004 AAG has grown into one of the largest and most trusted reverse mortgage lenders in the US. If you’re looking to use equity from your home, American Advisors Group (AAG) is a solid choice. As a member of the National Reverse Mortgage Lenders Association, so you can be sure your reverse loan process is handled professionally.

Once you’ve decided to see what reverse mortgages are all about, AAG has resources to help you understand the process. Home Equity Conversion Mortgage (HECM) reverse mortgages are the only thing AAG does, providing personalized service and access to information. If you’re 62 or older and own a home, a reverse mortgage can help convert the equity of your home into cash — all while still living in your home. You can use the money for anything from medical bills, living expenses or to delay Social Security.

Did you know?

A Home Equity Conversion Mortgage (HECM) is the only type of reverse mortgage that’s FHA and HUD-approved and insured by the federal government, making it a sound choice for seniors. It allows you to withdraw some of the equity in your home, allowing you to better enjoy your retirement.

Pros and cons of AAG reverse mortgages

Pros

  • Online calculator. Use AAG’s reverse mortgage loan calculator to get an estimate on how much you could receive.
  • Positive reviews. Trustpilot gives AAG a 4.8/5 with 65% of customers giving it an excellent rating.
  • Experienced lender. AAG has been offering reverse mortgages to seniors for over 13 years, and originates an average of 900 loans per year.

Cons

  • No online application. To know if you qualify for a loan, you have to sign up for a free information kit.
  • Only offers reverse mortgages. If you’re looking to buy or refinance your home, you’ll have to look elsewhere for a home mortgage.

What do I need to get a loan with AAG?

If you’re 62 years old or older, you can get a reverse mortgage to convert your home equity into cash, without selling your home. You won’t make any monthly payments, but you’ll still be required to pay property taxes and insurance. To qualify for a reverse mortgage with AAG:

  • You must be 62 or older.
  • You must own your home outright or have most of your existing mortgage paid off.
  • Your name must be on the title of the home.
  • The property must be your primary residence, not a rental or vacation home.
  • You must be financially capable of maintaining the home, including paying property taxes and insurance.
  • The home must be a single family home, a two to four unit home with one unit occupied by the owner, a HUD-approved condo or a manufactured home that meets FHA requirements.
  • You must complete an information session by a HUD-approved counselor.
  • AAG reverse mortgages are not offered to seniors in Massachusetts.

Fees and costs

The fees you’ll see with an AAG reverse mortgage will vary depending on your situation. It’s likely you won’t have the cash to cover these fees upfront, so you can roll them into the total loan amount. Fees could include:

  • Loan origination
  • FHA Mortgage Insurance Premiums (MIP)
  • Counseling
  • Appraisal
  • Credit report
  • Title insurance
  • Inspection
  • Flood certification
  • Recording

How do I apply?

Once you’ve done your research and decided a reverse mortgage from AAG is right for you, go to the website and request an information kit. This kit will have personalized information to guide you through the process, including:

  1. Complete the HUD-required reverse mortgage counseling.
  2. Complete the loan application with guidance from an AAG specialist.
  3. AAG will schedule an appraisal of your property to determine the value of your home to be added to the application and reviewed.
  4. A closing agent will contact you to sign all closing documents and answer any additional questions.

How will I receive my money from my AAG reverse mortgage?

During the first year of your HECM loan through AAG you can only access 60% of the loan amount — the amount needed to pay off your current mortgage plus 10%. You’re payout options include:

  • Lump sum.
  • Line of credit.
  • Monthly installments.

Loan repayment

When you take out a reverse mortgage the lender pays you a monthly payment each month, rather than you paying the lender. Once you sell your home, the loan is due in full, with any remaining money going to you or your family. The situations when a reverse mortgage loan is due are when you:

  • Pass away.
  • Sell the home or transfers it to someone else.
  • No longer uses the home as your primary residence.
  • Live elsewhere for more than 12 consecutive months.
  • Don’t pay the home’s insurance or taxes.
  • Don’t live up to the terms of the reverse mortgage.

Because a reverse mortgage is a non-recourse loan, you can only pay back the loan with the sale of your home — no other assets. This is beneficial to you incase after the sale of your home, there’s not enough to cover the loan balance.

Bottom line

If you’re over 62 and need extra money during retirement, consider taking out a reverse mortgage with AAG. They provide the service and help you’d expect from mortgage lender.

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