You dream of a stress-free retirement but aren’t sure how to make it happen. One option is a reverse mortgage, which allows you to tap your home equity to get the cash you need without having to make monthly mortgage payments. You must continue to maintain the home, pay property taxes and homeowners insurance, and comply with loan terms. To learn more about how reverse mortgages work and where to find a reputable lender, please continue.
American Advisors Group (AAG) is a reputable reverse mortgage lender that offers Home Equity Conversion Mortgage (HECM) loan solutions nationwide. AAG was founded in 2004 by Reza Jahangiri, with a mission of helping older homeowners navigate retirement more easily. Finance of America Reverse LLC acquired certain AAG assets in 2023.
How Does an AAG Reverse Mortgage Work?
A reverse mortgage is a type of home loan that allows homeowners to convert a portion of their home equity into cash. Unlike a traditional mortgage, the homeowner does not make monthly mortgage payments. Instead, the loan is repaid when the homeowner sells the home, moves out, or passes away. The loan is typically paid off by the sale of the home, with any remaining equity going to the homeowner or their heirs.
AAG is a leading provider of reverse mortgages and has helped thousands of homeowners access their home equity. The company offers a variety of loan options to fit each individual’s unique financial situation. AAG’s team of experienced loan officers works with each client to find the best loan solution for their needs.
One of the benefits of working with AAG is the company’s commitment to transparency and education. AAG provides extensive resources to help homeowners understand the reverse mortgage process and make informed decisions. The company’s website features a wealth of information on reverse mortgages, including articles, videos, and frequently asked questions.
AAG is also known for its exceptional customer service. The company has a team of knowledgeable loan officers who are available to answer questions and provide guidance throughout the loan process. AAG’s loan officers are committed to providing personalized service and helping each client achieve their financial goals.
Overall, AAG is a reputable and reliable reverse mortgage lender that has helped thousands of homeowners access their home equity. The company’s commitment to transparency, education, and customer service sets it apart from other lenders in the industry. If you’re considering a reverse mortgage, AAG is a great place to start your search.
Is a Reverse Mortgage Right for You?
A reverse mortgage lets you access your home equity without having to make monthly payments. It could be ideal for your financial situation in these situations:
- You want to convert a portion of your home’s equity into cash and receive it in monthly payments to increase your cash flow during retirement.
- Your home equity has increased significantly because you purchased when prices were low, and you want to pull a portion out through a reverse mortgage or refinance.
- You want to eliminate your monthly mortgage payment and access cash to cover the cost of renovations that would make your home more habitable. You are still responsible for maintaining the home, paying property taxes and homeowners insurance, and otherwise complying with loan terms.
- You want to buy a new home that doesn’t come with a monthly mortgage payment. You are still responsible for home maintenance, property taxes and homeowners insurance, and complying with all loan terms.
- You seek a reverse mortgage line of credit that increases as time progresses.
- You want to retire early but need a steady cash flow to achieve this goal.
Ultimately, a reverse mortgage is a complex financial product that may not be right for everyone before deciding if a reverse mortgage is right for you. So, you’ll need to consider your financial goals and needs to make an informed decision.
Here are a few more factors to keep in mind:
- Cost of a reverse mortgage: Reverse mortgages typically have higher fees and interest rates than traditional mortgages. As a result, the cost of the loan can add up quickly, potentially eating into your home equity.
- Impact of a reverse mortgage on your heirs. Your heirs will need to pay back the loan if they want to keep the house after you pass away. Otherwise, the home can be sold, and your heirs will receive any equity remaining after loan repayment.
- Your long-term financial goals. A reverse mortgage can provide a steady source of income during retirement, but it may not be the best option if you plan to leave your home to your heirs.
Again, the decision to get a reverse mortgage should be based on a careful analysis of your financial situation and goals. If you’re considering a reverse mortgage, it’s important to work with a reputable lender who can help you understand the costs and benefits of the loan. AAG is a reputable lender that offers a variety of reverse mortgage options to fit each individual’s unique financial situation. Their team of experienced loan officers can help you determine if a reverse mortgage is right for you.
Types of Reverse Mortgage Loans Available Through AAG
AAG features four reverse mortgage options – a lump-sum payout, a growing line of credit term or tenure reverse mortgage and the reverse for purchase mortgage.
If you opt to receive the loan proceeds in a lump sum, you can withdraw up to 60 percent of the amount in the first year.
Growing Line of Credit
You can also get a line of credit that grows over time — the longer it remains untapped, the more the line will increase.
Term or Tenure
You can select a term reverse mortgage if you’d prefer to receive fixed monthly payments over a set period. However, a tenure reverse mortgage is better if you want to receive fixed monthly payments until you pass away. With all payout options, you are responsible for home maintenance, property taxes and homeowners insurance and complying with all loan terms.
Reverse for Purchase
You can use a reverse-for-purchase mortgage to buy a home that best suits your long-term housing needs, and you won’t be on the hook for monthly mortgage payments. However, you are still responsible for home maintenance, payment of property taxes and homeowners insurance, and compliance with loan terms.
How Long Does It Take to Get a Reverse Mortgage from AAG?
It depends, but AAG prides itself on providing a fast, seamless mortgage process from application through funding.
How to Qualify for an AAG Reverse Mortgage?
You may be eligible for a reverse mortgage loan if you’re at least 62 years of age, own the home with sufficient equity, and use it as your primary residence. A loan officer will be happy to answer any questions you have about the eligibility guidelines or to help you determine if you qualify for funding.
Are There Safeguards in Place When Getting an AAG Reverse Mortgage?
Safeguards are in place to help ensure reverse mortgages best suit the needs of older adults.
Reverse Mortgage Counseling
Borrowers must complete reverse mortgage counseling with an independent, HUD-approved counseling agency.
AAG also has a mandatory financial assessment that all potential borrowers must complete before taking out a reverse mortgage. Doing so reassures the lender that you can make timely homeowners insurance and property tax premium payments.
If your spouse hasn’t yet reached 62 years of age, they can be classified as an eligible non-borrowing spouse. This designation allows them to stay in the home in the unfortunate event that you pass away. Still, they must maintain the property and continue making property tax and homeowners insurance payments.
How to Get Started with a Reverse Mortgage from AAG
Complete the online form when you’re ready to learn more about how AAG can help you put your home equity to good use. A team member will reach out to discuss reverse mortgage solutions that may be available to you.