American Advisors Group Reverse Mortgage Review

Best for Accessing Equity in a High-Value Home

American Advisors Group is a reputable lender known for its exceptional standards of customer service and high rate of satisfaction among borrowers. Those looking for high-value loans benefit most from AAG’s Jumbo Reverse Mortgage Loans, an option that sets this lender apart from others in the same competitive market.

AAG also offers the standard Adjustable Rate HECM and Fixed Rate HECM mortgages and H4P mortgages available from most reverse mortgage lenders across the United States.

AAG heavily promotes its Jumbo Reverse Mortgage Loan on its website. This loan option is geared toward high-value homeowners who are looking to refinance their properties. AAG makes a significant payout amount on a reverse mortgage available to older Americans, with a qualifying age of 55 years or older in most states. The maximum payout amount on the AAG reverse mortgages is $4 million.

There are typically fees involved when borrowing from any lender in the United States, but the specific fees AAG charges for a reverse mortgage can vary. Based on data from the Consumer Financial Protection Bureau, borrowers should anticipate origination fees, not in excess of $6,000. They’re also responsible for paying closing costs, which include title searches, inspection fees and lawyer fees. An initial and annual insurance premium paid to the Federal Housing Administration should also be part of a borrower’s planned expenses.

The purchase price of the home and the mortgage interest rate a borrower qualifies for have a direct impact on any fees they pay the lender.

The AAG Advantage Jumbo Loan is a great option for individuals who want to stop making monthly mortgage payments and revamp their investment portfolio without dipping into their retirement savings.

Generous Maximum Payout

The Advantage Jumbo Loan offers a maximum payout of $4 million on a reverse mortgage or refinancing loan. This private mortgage is available to homeowners of high-value properties.

Mortgage Insurance

This isn’t a federally insured loan; however, private insurance is available for borrowers who are interested. Unlike traditional reverse mortgages, mortgage insurance isn’t a requirement for the jumbo loan.

Payments

No monthly insurance premiums are required for the Jumbo Reverse Mortgage from AAG. This is a fixed-rate mortgage, meaning rates will not increase from the time of signing. There are no monthly mortgage payments for the Jumbo Reverse Mortgage either.

Payout Options

Lump-sum payments are the only payout option for AAG’s Advantage Jumbo Loans.

Eligibility Requirements

To qualify for AAG’s Advantage Jumbo Loans, borrowers must be at least 55 years of age or older. There are some exceptions to this age minimum depending on the state in which the borrower resides. The minimum age in New York and Washington is 60 years old, while borrowers in Utah, North Carolina and Texas must be at least 62 to be eligible.

AAG also requires applicants for the Advantage Jumbo Loan to be owners of a high-value property that they retain as a primary residence. The loan must offer more proceeds than a regular reverse mortgage.

The company has safeguards in place to protect borrowers of this private loan due to its high payout. Applicants must take an online counseling course that makes them aware of their obligations as a borrower. They must also undergo a financial assessment to ensure they meet the loan terms.

AAG offers both Fixed-Rate and Adjustable-Rate Home Equity Conversion Mortgages along with a Home Equity Conversion Mortgage for Purchase, or the H4P, option.

Maximum Payout

The maximum payout for the Fixed-Rate and Adjustable-Rate HECMs is $726,525. For the H4P option, the maximum payout available depends on the final purchase price of the home.

Mortgage Insurance

All these loans are federally insured by the FHA, making it easier for those with low incomes to qualify for approval.

Payments

There are no monthly mortgage payments on these reverse mortgage loans, freeing up funds for other purposes. This system is designed to help seniors remain in their homes while aging and not earning a large income.

Payout Options

Payouts for the Fixed-Rate HECMs are only available as lump-sum payouts. However, with an Adjustable-Rate HECM, there are several payout options. Payouts can be issued through lump sum payouts, line of credit payouts, monthly disbursements or combination payouts.

Eligibility Requirements

These government-insured mortgage loans have different parameters than the private proprietary loan (the Advantage Jumbo Loan). All borrowers must be at least 62 years old to qualify for these HECMs or the H4P. Homeowners must have paid off their existing mortgage and own the home outright (or almost have their mortgage paid off). The home must also be their primary residence, which typically means they live there at least 6 months of the year.

As with the private jumbo loan, applicants must undergo counseling to understand the financial obligations of the reverse mortgage. They must also undergo a financial assessment when qualifying. Spouses who are younger than 62 can qualify as non-borrowing spouses, which allows them to remain in the home if the original borrower passes away.

Seniors With High-Value Homes

Adults at 55+ who own high-value properties outright can use AAG’s Advantage Jumbo Loan option to access their home’s equity. These additional funds can help improve their financial situation as they enter retirement. If the individual purchased their home when prices were low and the value has increased, they can use the lump sum payments from a reverse mortgage to diversify their investments and achieve better financial stability.

Seniors With Spouses Under 62

For the FHA-insured conversion loans, AAG offers the option to add a borrower’s spouse to the reverse mortgage if they’re under the qualifying age of 62, enabling them to remain in their beloved home even if their partner passes away. This arrangement stands as long as the surviving spouse continues to meet all loan obligations following their partner’s death.

The reviews of AAG’s reverse mortgages are extremely positive, with many borrowers reporting they were able to make smart financial decisions with the freedom their reverse mortgage brought them. An elderly couple wrote in their testimonial that they were pleased with the loan they secured. Their reverse mortgage line of credit enabled them to start a fund for emergencies and home maintenance.

Another woman approaching 80 years of age says she was convinced to use AAG for her reverse mortgage after seeing actor Tom Sellick act as the spokesperson for the company. She now says that getting a reverse mortgage from AAG has made her life better. With no monthly mortgage payment, she has the security of knowing her living situation will remain the same as long as she can manage to stay in her home.