Wednesday, August 10, 2022

What Is Aag Reverse Mortgage

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What Aag Customers Are Saying

AAG | Jumbo Reverse Mortgage

On its website, AAGâs own customer satisfaction rating claims a 98% customer satisfaction rate from client surveys as of October 30, 2019.

AAG has a 4.5 out of 5 rating out of 4,398 reviews on Trustpilot. A total of 67% of individuals have rated the company and its reverse mortgage professionals as excellent and another 17% have put the company in the greatâ category.

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You Are Protected If The Housing Market Declines

The reverse mortgage loan is insured by the federal government. With federal insurance comes greater security. If the loan ends up amounting to more than the value of the home when sold, government insurance will cover the difference. This means that the loan will be paid in full using only the proceeds your home sells for, and no more.

American Advisors Group The Nations #1 Reverse Mortgage Lender

Brad Dela Cruz, AAG Top Producer

Hello, I would like to share a bit about myself and my company with you. I have specialized exclusively in reverse mortgage loans for thirteen years and have consistently been a top advisor in the industry. My experience and knowledge of the industry allows me to better serve my clients, their families, and their advisors when it comes to planning a better retirement and the use of home equity to accomplish this. I am often told that my process and the way I am able to explain reverse mortgage loans is the best and easiest to understand when compared to others. My career has been dedicated to improving the lives of older Americans and providing them with information necessary to make an educated decision about responsible ways to access home equity and improve their retirement.

Our processing and fulfillment teams are second to none. They have years of experience, and have streamlined our processes to maximum efficiency. This means that you can feel comfort in knowing you have a team of professionals working with you during this process to ensure your loan closes in a timely manner with the terms that you choose. “It would be my honor to provide you with all the information you will need in order to make an educated decision on whether or not a reverse mortgage loan is right for you or a family member.”

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Yes Tom Selleck Is A Paid Spokesman

Tom Selleck is a paid spokesman for another lender. Over the years there have been several notable celebritieswho have represented reverse mortgage companies including Robert Wagner, Henry The Fonz Winkler, former US Senator Fred Thompson, Law and Orders Jerry Orbach to name a few.

Lesser known celebrities such as Bill Medley from the Righteous Brothers did a reverse mortgage commercial and so did 1950s pop singer Pat Boone. Even David Spade has done parody commercials about reverse mortgages. But the bottom line is that they are paid actors doing commercials.

Did Tom Selleck really do his homework before he decided to represent a reverse mortgage company? I cannot say, but I have no reason to doubt him. I was a mortgage banking professional for almost 30 years when my own mother asked me about the loan and I had to answer honestly that I had never originated one at the time and I had to look into them because I had to do some research of my own.

Doesnt mean that I needed a reverse mortgage or even qualified for one at the time based on my age then, but I had to research it to answer my mothers questions. I dont think Mr. Selleck is lying just because he doesnt personally need the loan.

If the man says that he did his research on the program , I have no call to doubt his word.

How To Pay Off A Reverse Mortgage Without Losing Your Home

AAG Reverse Mortgage TV Commercial,

In most cases, a reverse mortgage is paid off with the sale proceeds of the home when the borrower moves out or they pass away. There are some protections in place, including a non-recourse clause that prevents borrowers or their heirs from having to repay more than the value of the home when its sold.

Unfortunately, because reverse mortgages are usually paid off with the sale of the home, homeowners often arent able to get out of the loan or leave it to their heirs when they die. The only way to keep the home is to find another way to repay the loan.

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How A Refinance Loan Works

When you refinance, you are replacing your old mortgage loan with a new one to withdraw some of your equity in cash or to secure a rate and/or term that is more favorable. When done right, refinancing can be a smart move that can save you thousands of dollars and greatly improve your financial picture in retirement.

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Do I Have Enough Equity For A Reverse Mortgage

What youre eligible for will depend on your circumstances and reverse mortgage terms. For example, if youre younger and the sole titleholder, youll need more equity to qualify. In the first example above where the homeowner owns a $400,000 home outright a 62-year-old borrower would only receive a $176,360 lump sum.

The payment type you select will also affect your loan amount. In many cases, you may receive more with a monthly payment or credit line option than with a single disbursement.

A reverse mortgage calculator can estimate your payout however, a HECM counselor approved by the U.S. Department of Housing and Urban Development and reputable reverse mortgage lenders will provide more accurate figures based on your financial situation.

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Meet With A Hud Counselor

Before you can apply for a reverse mortgage, older homeowners will participate in an informative counseling session with a representative approved by the U.S. Department of Housing and Urban Development . These sessions allow the expert to provide an overview of the loan process as well as answer in detail the borrower’s common question of “How does a reverse mortgage really work?” During the counseling session, the HUD-approved advisor may touch on the financial implications of a reverse mortgage, compare costs among various lenders, and even propose alternatives to an HECM loan for the individual.

Reverse Mortgage Is An Option

What Is A Reverse Mortgage and How Does It Work? “Piggy Bank”

A reverse mortgage loan isnt for everyone, but if you own your home and want to capitalize on that ownership in your later years, it can offer you a number of benefits. For instance, staying in your home rather than downsizing to a smaller property. Additionally, a reverse mortgage pays off any existing mortgage so you are no longer responsible for those monthly payments. Finally, a reverse mortgage loan may provide a regular revenue stream to help offset expenses and make for a more meaningful and fulfilling retirement.

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Best Reverse Mortgage Lenders Of 2021

May 12, 2021 Quontic Bank Best digital option · AAG Best recognized brand · Longbridge Best online tools · All Reverse Mortgage Inc Best customer All Reverse Mortgage Inc: 3.39%6.99%Finance of America Reverse: Not listedLender: Sample Interest RatesQuontic Bank: 4.199%4.815%

The Best Reverse Mortgage Companies A member in good standing with the National Reverse Mortgage Lenders Association, Fairway has become popular among One Reverse Mortgage: Origination fees are nHECM Lenders: Lender HighlightsReverse Mortgage Funding: Provides price maFinance of America Reverse: Available nation

There Are No Monthly Mortgage Payments Required From You

One of the most attractive benefits of reverse mortgages is that payments are made TO you, as long as you live in your home. This is quite different from a traditional forward mortgage where you must pay funds in a monthly amount. With reverse mortgages, you receive funds. The loan is repaid when you sell your home, move to another primary residence, or when the last borrower leaves the home. Borrowers remain responsible for paying property taxes, homeowners insurance, and for home maintenance.

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Best Reverse Mortgage Companies Of 2022

  • Loans up to $4 million

  • Proprietary product only in 26 states

Many people in their 60s have raised their kids and find themselves empty-nesters in a large home with space they no longer need. FARs HomeSafe program is the best choice for people who want to combine the benefits of a reverse mortgage with buying a new home that better meets their location, size, and layout needs.

HomeSafe works well for owners of high-value homes because it provides access to up to $4 million of equity to be used towards a purchase of a new home or condo.

With HomeSafe, many of the closing costs can be rolled into the reverse mortgage. You still have to account for appraisal, title, and escrow fees. It may charge a servicing fee of up to $35 per month for some borrowers.

FARs HomeSafe, HomeSafe Flex, and its standard HECM reverse mortgage provide borrowers with multiple ways to access their proceeds, such as lump sum, term payments, and a line of credit.

To qualify, you must be at least 62, have most of your mortgage paid down, complete the HUD-required financial counseling, pass the financial assessment, and apply the reverse mortgage to your primary residence. There is no specific credit score requirement.

FARs HECM product is available in all 50 states, but HomeSafe is limited to 25 states plus Washington, D.C.

The companys customer service team is more engaged than most they encourage you to email and call them about your situation.

How We Chose The Best Reverse Mortgages

Reverse Mortgage Age Requirement: When to Get a Reverse Mortgage Loan

We reviewed more than a dozen reverse mortgages before choosing these top seven. We summarized the pros and cons for you, investigated the costs at the beginning, middle, and end of the reverse mortgage contracts, and highlighted the key terms.

Borrower criteria and the types of homes that qualified mattered as well. For most of the industry, the qualifications are the same because they are driven by the FHA, but certain proprietary reverse mortgages offer interesting options, both for the borrowers profile and the home style.

Time to close, customer service, reputation, and nationwide lending were also major factors in selecting our winners for each category.

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Why You Can Trust Bankrate

Founded in 1976, Bankrate has a long track record of helping people make smart financial choices. Weve maintained this reputation for over four decades by demystifying the financial decision-making process and giving people confidence in which actions to take next.

Bankrate follows a strict editorial policy, so you can trust that were putting your interests first. All of our content is authored by highly qualified professionals and edited by subject matter experts, who ensure everything we publish is objective, accurate and trustworthy.

Our mortgage reporters and editors focus on the points consumers care about most the latest rates, the best lenders, navigating the homebuying process, refinancing your mortgage and more so you can feel confident when you make decisions as a homebuyer and a homeowner.

Is A Reverse Mortgage Right For You

Some things to consider:

  • You want to access your home’s equity in cash

  • You want to age in the comfort of your home

  • You do not plan to sell your home or move away in the near future

  • You are able to continue paying your property taxes, homeowners insurance, and maintain basic home repairs

  • You plan to leave your home for more than 12 consecutive months

  • You plan to move out of your home

  • You may not want to age in your home.

  • You are not sure you can fulfill all loan obligations including paying homeowners insurance and property taxes.

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The Final Word On Aag

AAG has high customer satisfaction ratings, so if youre considering a reverse mortgage, it could be a good fit. Of course, do your due diligence before you choose a reverse mortgage company, because along with the positives, reverse mortgages also have downsides. Learn more about how a reverse mortgage works.

What Can A Reverse Mortgage Be Used For

AAG – Too Good To Be True – Reverse Mortgage Loan Commercial

Supplementing retirement income, covering the cost of needed home repairs or paying out-of-pocket medical expenses are common and acceptable uses of reverse mortgage proceeds, according to Bruce McClary, spokesperson for the National Foundation for Credit Counseling.

In each situation where regular income or available savings are insufficient to cover expenses, a reverse mortgage can keep seniors from turning to high-interest lines of credit or other more costly loans, McClary says.

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Aag Reverse Mortgage Requirements

To qualify for a reverse mortgage with AAG, you must meet a series of personal and property requirements. Youll also need to complete an information session with a HUD-approved counselor.

Personal requirements
  • At least 62 years old in an eligible state
  • Name on the homes title
  • Financially able to maintain your home, keep up with property taxes and pay for insurance
  • Primary residence, not a rental or vacation home
  • Single-family home, two- to four-unit home with one owner-occupied owner, HUD-approved condo or manufactured home meeting FHA requirements

In addition to the above requirements, you must also:

  • Complete reverse mortgage counseling with an independent counseling agency.
  • Undergo a financial assessment to make sure you can keep up with your loans financial obligations.

Documentation

To apply for a reverse mortgage, youll need to provide:

  • Your full name, birthdate and personal contact information
  • Your Social Security number
  • Information on any income you have
  • Personal tax returns from the past two years
  • A list of your assets, including savings, real estate, car titles and other investment records
  • A complete list of your debts, including student loans, auto loans, personal loans and credit cards

What Are The Downsides To A Reverse Mortgage

The downsides to a reverse mortgage include that you must pay your property taxes, homeowners association fees, and other costs. If you don’t, you could lose your home to foreclosure.

In addition, your heirs could receive less of an inheritance because they have to pay back your reverse mortgage. You’ll also pay fees in the form of an upfront mortgage insurance premium as well as origination fees. Finally, reverse mortgages are complex products that deserve careful consideration before you decide to get one. The best mortgage lenders will thoroughly explain how your mortgage works and give you time to decide whether its right for you.

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American Advisors Group Faq

What fees does AAG charge?
AAG charges interest, an origination fee, closing costs, servicing fees and mortgage insurance premiums when required by HUD. Fees roll into the balance of the loan, and AAG charges interest on your balance, which grows over time.
What is the AAG Foundation?
The AAG Foundation is a paid volunteer time-off program for full-time AAG employees. Through the program, employees get eight hours per year of paid service to AAG Foundation-approved activities.
Where are AAG loan options available?
AAG operates in every state except Massachusetts.
When was AAG founded?
AAG was founded in 2004.

How Do Reverse Mortgages Work

What Is A Reverse Mortgage Loan? Infographic

When you have a regular mortgage, you pay the lender every month to buy your home over time. In a reverse mortgage, you get a loan in which the lender pays you. Reverse mortgages take part of the equity in your home and convert it into payments to you a kind of advance payment on your home equity. The money you get usually is tax-free. Generally, you dont have to pay back the money for as long as you live in your home. When you die, sell your home, or move out, you, your spouse, or your estate would repay the loan. Sometimes that means selling the home to get money to repay the loan.

There are three kinds of reverse mortgages: single purpose reverse mortgages offered by some state and local government agencies, as well as non-profits proprietary reverse mortgages private loans and federally-insured reverse mortgages, also known as Home Equity Conversion Mortgages .

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Access To More Funds In The Future

The principal limit for a reverse mortgage is generally set at the time the loan is originated. For a variable-rate loan, the principal limit can increase over time, giving borrowers access to more money. But the principal limit on a fixed-rate loan wont increase. The lump sum the borrower received at the beginning of the loan term is the most they can receive.

How Interest Rates & Margins Affect The Principal Limit

One of the things that can determine the amount for which borrowers will ultimately qualify is the rate at which the loan accrues interest.

When the on the adjustable rates were lower and the fixed rate was higher, the adjustable rates gave borrowers more money in their pockets in the form of eligibility.

Now, most borrowers who run the numbers receive more money on the fixed rate program.

This is extremely important to know if you are trying to get as much as possible to pay off an existing lien.

It also means that the higher the margin, the less money the borrower will receive and the faster interest on the loan will accrue.

So, the thing to look for in a reverse mortgage here is the rate on a fixed rate or the margin on an adjustable rate that is being quoted.

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