The Best Reverse Mortgage Company

Mutual of Omaha offers four reverse mortgage programs to help seniors fund expenses after retirement. Individuals who are at least 62 years old and have a minimum of 50% equity invested in their homes may apply for one of the company’s Federal Housing Administration-insured loans to meet their needs. 

Approved by the Department of Housing and Urban Development, Mutual of Omaha’s reverse mortgage products allow seniors to continue living in their homes and benefit from the equity they’ve invested in the property.

Overview of Mutual of Omaha Reverse Mortgages

For more than a century, Mutual of Omaha has provided health insurance and financial services for individuals and businesses. The company offers seniors a variety of choices when it comes to placing a reverse mortgage on their homes.

  • Seniors can utilize Mutual of Omaha’s standard home equity conversion mortgage to receive a lump sum or monthly payments.
  • Another option is a reverse mortgage refinance that takes advantage of the property’s increased market value.
  • The HECM for Purchase plan allows individuals to purchase a smaller home with the substantial equity they’ve invested in their current residence.
  • With the company’s HomeSafe reverse mortgage, seniors may borrow against the equity amassed in high-value properties.   

What Fees Does Mutual of Omaha Charge?

Although Mutual of Omaha doesn’t publish a standard list of fees for reverse mortgages, homeowners can expect to pay for services within the following ranges, depending on a number of variables, such as loan type and amount.

  • Upfront Costs
  • HUD-approved counseling: $125-$175
  • Appraisal fees: $400-$500
  • Closing costs: $1,000-$2,000
  • Loan origination fees: $0-$6,000
  • Initial mortgage insurance fee: 2.0% of the home’s appraised value, or $2,000 per $100,000, up to a maximum of $6,000, even if the home is valued at more than $300,000
  • Ongoing Costs
  • Interest: based on the outstanding principal and compounded annually
  • Mortgage insurance: 0.5% of the outstanding balance up to the contract’s 5-year point or 78% of the property value is reached, whichever occurs first
  • Service fees: $25-$35 per month

Full Review of Mutual of Omaha’s Reverse Mortgage Features

The different reverse mortgage programs that Mutual of Omaha offers are designed to meet specific needs; however, they all share certain eligibility criteria.

Eligibility

In order to qualify for any of the loan options, borrowers must be at least 62 years old and have a minimum of 50% equity invested in their properties. They must also provide proof that the home is their primary residence.

In addition, HUD requires specific property parameters to qualify for a reverse mortgage. A single-family residence, two- to four-unit property, manufactured home, condominium or townhome built on or after June 15, 1976, may be eligible.

Property condition requirements are another aspect of HUD’s loan prerequisites. Individuals with homes in need of maintenance may be able to apply with the intention of using the reverse mortgage to make necessary repairs.

Length of Loan

Reverse mortgage loans remain intact as long as the home’s taxes, insurance, any HOA fees, ongoing maintenance and residency requirements are kept up according to the contract.  

Repayment Requirements

Seniors may opt for one of the four reverse mortgage products Mutual of Omaha offers. Each gives borrowers a financial solution without a monthly loan payment requirement. The balance is paid from the sale of the property when the last borrower dies or moves.

Also certain accommodations can be made for non-borrowing surviving spouses to remain in the home. Heirs may repay the loan or deed the property back to the lender.

Mutual of Omaha Reverse Mortgage Loan

The home equity conversion mortgage allows seniors to remain in their homes while cashing out on the equity they’ve built. 

Payout Options

Seniors may receive a lump sum payout, fixed monthly payments or save the cash in an interest-bearing line-of-credit account to use as needed.

Federally Insured Mortgage Loan

The HECM loan is insured and regulated by the FHA.

Interest Rates

The lump sum disbursement has a fixed interest rate throughout the loan’s term. The other reverse mortgage disbursement options are offered with variable rates. Those fees include a base interest rate and an added lender’s margin of 1% to 3%. 

Maximum Loans

The most you can borrow depends on the home’s appraised value up to an FHA maximum of $970,800, the age of the youngest borrower, your equity and the loan’s interest rate. Reverse mortgages typically range between 40% and 60% of the property’s value.

Mutual of Omaha Reverse Mortgage Refinance

Retirees who want to take advantage of their properties’ increased values may be eligible to refinance their existing reverse mortgages.

Eligibility

Individuals must wait a minimum of 18 months between the closing of the last mortgage transaction and submitting the current reverse mortgage refinance application.

Payout Options

In addition to restructuring their home’s loan, borrowers may receive a lump sum payment, monthly disbursements or a line of credit with any remaining equity.

Federally Insured Mortgage Loan

HECM Refinance loans are FHA regulated and insured.

Maximum Loans

The FHA insures HECM Refinance loans up to $970,800. 

Mutual of Omaha HECM for Purchase

Seniors looking to downsize or purchase a property that better meets their needs can use the Home Equity Conversion Mortgage for Purchase option to secure the necessary down payment.

Eligibility

Borrowers must have enough equity in their current home to subsidize the new property’s down payment.

Payout Options

The one-time downpayment payout from the sale of the borrower’s previous home is typically between 45% and 62% of the new home’s purchase price.

Federally Insured Mortgage Loan

HECM for Purchase loans are federally regulated and insured through FHA.

Maximum Loan

The maximum loan or claim amount the FHA will ensure is $970,800.

Mutual of Omaha HomeSafe Reverse Mortgage

Eligibility

Seniors living in condos valued over $500,000 or single-family homes appraised above $850,000 may be interested in the HomeSafe reverse mortgage.

Payout Options

Borrowers may receive a lump sum payment or monthly term payments for up to 60 months.

Federally Insured Mortgage Loan

The HomeSafe reverse mortgage is not FHA insured. However, private insurance options are available.

Interest Rates

The HomeSafe program offers competitive fixed interest rates.

Maximum Loan

The maximum HomeSafe loan is $4 million.

Who Should Consider a Mutual of Omaha Reverse Mortgage?

Seniors Who Need Money To Fund Retirement Expenses

Seniors who want to remain in their current home may want to convert the equity into cash to pay for unexpected medical expenses, home repairs and maintenance, or supplement monthly income.

Seniors Who Want To Age in Place in a Smaller, Low-Maintenance Home

Some seniors want to downsize or upgrade their home environment. For them, a reverse mortgage product, such as an HECM for Purchase, suits their needs. They can use the money earned from the sale of their previous home and convert it into a substantial down payment on the new home’s purchase without using cash reserves.

What Are People Saying About Mutual of Omaha’s Reverse Mortgages?

Individuals who’ve contacted Mutual of Omaha to inquire about its reverse mortgage programs generally report having a favorable experience. Although some potential clients indicate they’ve completed the online application and waited months before hearing from a loan professional, others are complimentary of the personalized service they’ve received.

Reviewers share that each of the company’s reverse mortgage options was thoroughly explained, and they received assistance with navigating the loan process. Many borrowers appreciate agent responsiveness and feel they were appropriately matched with a product that best meets their needs.

FAQs


Will a Reverse Mortgage Affect My Pension?



If you have a privately funded pension from employment, a reverse mortgage loan won’t affect it. Likewise, it doesn’t affect Social Security payments that you are entitled to based on working career earnings. Need-based programs, such as Medicaid and Supplemental Security Income, however, could be impacted depending on how the loan is received. Click here for our full answer to this question. 


Do You Still Own Your Home With a Reverse Mortgage?



Homeowners who opt for a reverse mortgage continue to retain ownership of the property until the last surviving borrower dies, resides elsewhere for 1 year, sells or fails to meet insurance, tax and maintenance responsibilities. Click here for our full answer to this question.


What Happens With a Reverse Mortgage if the Owner of the Home Dies? 



There are several scenarios to consider with a reverse mortgage in the event of an owner’s death:

• A co-borrowing spouse may continue to live in the home as long as the loan conditions are met.
• A non-borrowing spouse meeting specific criteria may remain in the home.
• Heirs may sell or keep the home after paying off the appropriate reverse mortgage balance, or they could deed the home back to the lender.

Click here for our full answer to this question. 


What Is the Difference Between a Home Equity Loan (HELOC) and a Reverse Mortgage?

There are many considerable differences between a home equity line of credit and a home equity conversion mortgage. The most notable distinctions include:

• Monthly payment: No payment is required for an HECM, but the payment for a HELOC depends on the amount withdrawn.
• Age restrictions: An HECM borrower must be at least 62 years old, whereas a HELOC borrower must be the legally responsible adult listed on the property’s title.
• Closing costs: HECM closing costs can run upwards of $6,000. HELOC closing costs average between 2% and 5% of the loan.

Click here for our full answer to this question. 


How Much Money Do You Get From a Reverse Mortgage?



Several factors affect the amount of money you’ll receive from a reverse mortgage, including the age of the youngest borrower and current interest rates. Generally, you can expect a loan of between 40% and 60% of the home’s value as long as you have a minimum of 50% equity invested. Click here for our full answer to this question.