If you’re a senior homeowner looking to tap into your home equity, you might have heard of a reverse mortgage. One of the best-known providers of reverse mortgages is American Advisors Group (AAG). In this article, we’ll give you an overview of what AAG does and what makes it stand out from other reverse mortgage companies.
What is a Reverse Mortgage?
First things first: what exactly is a reverse mortgage? Simply put, it’s a type of loan that allows homeowners aged 62 and older to borrow against the value of their homes. Unlike traditional mortgages, with a reverse mortgage, the borrower doesn’t make monthly payments. Instead, the lender pays the borrower in one lump sum or in monthly installments.
The most popular type of reverse mortgage is the Home Equity Conversion Mortgage (HECM), which is insured by the Federal Housing Administration (FHA). This means that if the borrower dies or moves out of their home permanently, their heirs won’t be liable for any remaining loan balance beyond the value of the home at that time.
Who is AAG?
American Advisors Group (AAG) is one of the largest and most experienced providers of HECM loans in America. Founded in 2004 by Reza Jahangiri and headquartered in Orange County, California, AAG has helped thousands of seniors across America unlock their equity through reverse mortgages.
As well as offering HECM loans, AAG provides a range of other financial products and services designed to help seniors live more comfortably in retirement. These include:
- Traditional FHA mortgages
- VA loans
- Jumbo loans
- Annuities
- Life insurance
What Makes AAG Stand Out?
With so many providers offering HECM loans these days, why should you choose AAG over someone else? Here are some things that set AAG apart:
Experience
First and foremost, AAG has been in the business of reverse mortgages for over a decade. That means they have a wealth of expertise on hand to help you navigate the process and make informed decisions.
Range of Products
As we mentioned earlier, AAG offers more than just HECM loans. This means that if you’re not sure whether a reverse mortgage is right for you, or if you need other financial products to complement your retirement plan, AAG can help.
Education
AAG takes education seriously. They provide comprehensive resources on their website to help seniors and their families understand the ins and outs of reverse mortgages. They also offer free educational seminars across the country to answer any questions you may have.
Customer Service
Finally, AAG is known for its excellent customer service. They go above and beyond to make sure their clients feel supported throughout the entire loan process. You can contact them by phone or email at any time with questions or concerns.
How Does AAG’s Reverse Mortgage Process Work?
If you’re interested in getting a reverse mortgage through AAG, here’s what you can expect from the process:
Step 1: Consultation
The first step is to arrange a consultation with an AAG loan officer. The loan officer will explain how reverse mortgages work and answer any questions you may have. They’ll also assess your eligibility for a reverse mortgage based on your age, home equity, home value, and other factors.
Step 2: Counseling
By law, anyone applying for a HECM loan must undergo counseling from an independent housing counselor approved by HUD (the Department of Housing and Urban Development). The counselor will explain the costs and consequences of taking out a reverse mortgage so that you fully understand what you’re getting into.
Step 3: Application
If you decide that an AAG HECM loan is right for you after consulting with your loan officer and counselor, you can fill out an application. You’ll need to provide information about yourself, your income, and your property.
Step 4: Appraisal
AAG will send an appraiser to assess the value of your home. The amount you can borrow will depend on your home equity and appraisal value.
Step 5: Underwriting
Once the appraisal is complete, AAG’s underwriters will review your application and documentation to make sure you meet all the requirements for a reverse mortgage.
Step 6: Closing
If everything checks out during underwriting, you’ll be invited to a closing where you’ll sign the loan documents. You’ll also receive your loan proceeds at this time.
What are the Pros and Cons of Using AAG for a Reverse Mortgage?
Like any financial product, there are pros and cons to using AAG for a reverse mortgage:
Pros
- AAG is one of the most experienced providers of HECM loans in America
- They offer a range of other financial products designed to help seniors live more comfortably in retirement
- They provide extensive educational resources to help you make informed decisions
- Their customer service is excellent
Cons
- You must still pay property taxes and homeowner’s insurance while on the reverse mortgage
- Interest rates can be high compared to traditional mortgages
- Closing costs can add up quickly
Conclusion
American Advisors Group (AAG) is a well-respected provider of Home Equity Conversion Mortgages (HECMs) in America. If you’re a senior homeowner looking to tap into your home equity for more comfortable retirement living, they’re worth considering. With over a decade of experience in reverse mortgages and excellent customer service, AAG stands out as one of the best providers on the market today.
FAQs
What is AAG Reverse Mortgage Company?
AAG Reverse Mortgage Company is a lending institution that specializes in offering reverse mortgage loans to eligible senior homeowners.
Who is eligible for a reverse mortgage with AAG Reverse Mortgage Company?
Eligibility for a reverse mortgage with AAG Reverse Mortgage Company depends on several factors, including the age of the homeowner, their home equity, and their ability to pay property taxes and insurance.
How does a reverse mortgage work with AAG Reverse Mortgage Company?
With a reverse mortgage loan from AAG Reverse Mortgage Company, homeowners can receive money based on the equity they have built up in their homes over time. The loan does not have to be repaid until the borrower dies, sells the property or moves out of the house.
Why should I consider getting a reverse mortgage from AAG Reverse Mortgage Company?
If you are a senior homeowner who needs additional income or financial flexibility, a reverse mortgage loan from AAG Reverse Mortgage Company may be an attractive option for you. It can help you access your home’s equity without requiring you to sell your property or take out another type of loan.
Are there any downsides to getting a reverse mortgage with AAG Reverse Mortgage Company?
Yes, there are some downsides to getting a reverse mortgage loan from AAG Reverse Mortgage Company. For example, interest rates may be higher than other types of loans because they accrue over time instead of being paid back each month. Additionally, heirs may inherit less money if the borrower passes away while still owing money on the loan.
How much money can I get through a reverse mortgage with AAG Reverse Mortgage Company?
The amount of money you can receive through a reverse mortgage with AAG Reverse Mortgage Company depends on several factors such as your age, the home’s appraised value, and current interest rates. You can use their online calculator or speak with an AAG specialist to get a free estimate of how much you may qualify for.
Can I still own my home if I get a reverse mortgage with AAG Reverse Mortgage Company?
Yes, you still own your home if you get a reverse mortgage loan from AAG Reverse Mortgage Company. However, the lender will have a lien on the property until the loan is repaid. This means that if you pass away or sell the property, the amount owed on the loan must be paid off before anything goes to your heirs or remaining equity goes to you.
How long does it take to get approved for a reverse mortgage with AAG Reverse Mortgage Company?
The approval process for a reverse mortgage loan with AAG Reverse Mortgage Company typically takes 30-60 days after completing an application and providing all necessary documentation. However, some factors such as property appraisal and title search could lengthen that timeline slightly.
What are my options for receiving payments through a reverse mortgage with AAG Reverse Mortgage Company?
Borrowers can choose from several payment options when getting a reverse mortgage loan from AAG Reverse Mortgage Company including lump sum, line of credit, monthly payments or any combination thereof. Each option has its unique features so ask their representative which one would best fit your needs.
Is there anyone who should not consider getting a reverse mortgage with AAG Reverse Mortgage Company?
While a reverse mortgage may be beneficial for many seniors, it is not suitable for everyone. For example, those planning to move out of their home in the near future may find it more cost-effective to choose other financing methods while they are still living in their old house instead of going through the costs of getting and paying off a reverse mortgage. That being said, a financial advisor or reverse mortgage specialist can help you determine if this is right for you.