AMERICAN ADVISORS GROUP
You want to work with a reputable reverse mortgage lender who offers customized solutions and excellent customer service. This guide provides the information you need to make an informed decision about whether an American Advisors Group (AAG) reverse mortgage is right for you.
American Advisiors Group’s overview
AAG’s website states that it provides “considerate solutions and personalized service to our customers — all in an effort to help them and all older adults have the retirement they deserve.”
AAG only serves customers in their 60s and older to help them prepare for retirement by offering a variety of options for tapping the equity in their home.
What exactly is equity? Simply put, equity in your home refers to the difference between the value of your home and the amount owed on your mortgage. For instance, if in case you own a $200,000 home and have paid off $100,000 of your principal, you have $100,000 of equity in your home.
Reza Jahangiri founded AAG in 2004 in Orange County, California, with offices in California, Georgia, New York, and Texas. AAG employs over 1,000 people and is licensed to do business in 49 states (except Massachusetts) and the District of Columbia (DC). The US Department of Housing and Urban Development has approved the company, and the Better Business Bureau has given it a B rating.
Is AAG A Trustworthy Company?
Yes, AAG is a reputable company with excellent customer ratings on Trustpilot. The company is also a member of the National Reverse Mortgage Lenders Association, which adds to its credibility (NRMLA).
It’s worth noting that AAG reached a settlement with the Consumer Financial Protection Bureau on October 8, 2021. The order prohibits it from misrepresenting home values to consumers and requires it to pay $173,400 in consumer redress and a $1.1 million civil money penalty. The order and settlement do not constitute an admission of guilt or a finding of legal violation.
Who Is The Owner of American Advisors Group Reverse Mortgage?
The company is owned by Reza Jahangiri, the CEO of AAG. Under his direction, the company has created a variety of AAG reverse mortgage products, including residential services.
What Exactly Is A Reverse Mortgage?
If you’re 62 or older and need money for any reason — to cover retirement expenses, pay for health care, and so on — you should think about getting a reverse mortgage.
A reverse mortgage is a type of home loan that allows you to convert a portion of your home’s equity into cash. You are permitted to borrow up to your net principal limit. The net principal limit is determined by a combination of your home equity value, age, reverse mortgage type, and interest rate.
An appraiser determines the value of your home with a reverse mortgage. The lender will determine how much money you can borrow based on the value of your home, the age of the youngest borrower or eligible non-borrowing spouse, and current interest rates.
If you qualify, the lender will pay off your current home loan balance and pay you a lump sum or a fixed monthly amount. Some lenders also provide a line of credit that you can use as needed. It’s similar to a HELOC, or home equity line of credit.
You must, however, continue to pay your homeowners insurance and property taxes. You must also keep up with home maintenance. If you do not, your loan may become due and you will be required to repay it.
When you die, your heirs must repay the reverse mortgage, or you must repay it when you leave the home or move away. In most cases, you or your heirs will sell the home and the proceeds will be used to repay the loan.
Because a reverse mortgage isn’t right for everyone, it’s critical to understand all of the benefits and drawbacks of one.
American Advisors Group Reverse Mortgage
If you need extra money in retirement and prefer to stay in your home rather than sell it, a reverse mortgage from AAG may be right for you. A reverse mortgage can be used for anything, including medical expenses, travel, or simply saving money.
You must be at least 62 years old, own your own home, and live in it as your primary residence to qualify for a standard reverse mortgage loan with AAG. In addition, you must complete a counseling course to ensure that you understand the implications of this type of loan. You will also be subjected to a financial assessment to ensure that you can pay the required property taxes and insurance. This mortgage insurance is required to protect AAG if you default on your loan.
AAG offers borrowers a variety of reverse mortgage payout options, including a lump-sum payout, a line of credit, or monthly payments.
- Loan amount varies depending on your age, home value, loan interest rate, and current mortgage balance.
- Loan terms vary depending on how you access your funds.
- APR : Interest rates fluctuate. They can be both fixed and variable.
- Credit is required.
- There is no minimum credit score requirement.
AAG Offers Jumbo Reverse Mortgages.
The AAG Advantage jumbo reverse mortgage allows you to withdraw up to $4 million in equity from your home at a fixed interest rate. You will receive the full amount at closing. It is ideal for those who own high-value properties.
To be eligible, you must be at least 60 years old, own a high-value property, and make it your primary residence. To understand the details of a jumbo reverse mortgage, you must first complete a counseling course and a financial assessment.
Unlike traditional reverse mortgage and refinance loans through AAG, you do not need to purchase mortgage insurance.
It should be noted that the Advantage jumbo reverse mortgage is not available in every state. Please contact AAG to inquire about availability in your state.
- Amount of loan: up to $4 million
- Loan duration: Depending on how you access your funds, the amount varies.
- APR Interest rates differ. To find out what your rates are, contact an AAG specialist.
- Credit is required: There is no minimum credit score requirement.
American Advisors Group Offers A HECM For A Home Purchase Loan.
Are you thinking about how to get a loan to buy a house? Perhaps you’re ready to simplify and downsize your life. A home equity conversion mortgage (HECM) for purchase loan, also known as a reverse for purchase loan, is a government-insured loan that enables you to buy a new home while eliminating monthly mortgage payments. You only need to put down a small deposit.
The Federal Housing Administration (FHA)-backed HECM for purchase loan combines a reverse mortgage with the equity from the sale of your previous home.
In other words, it enables you to handle everything in a single transaction. You only make one down payment on the purchase. You must continue to pay property taxes, homeowners insurance, and maintain your home as you would with a traditional reverse mortgage.
To qualify, you must be 62 or older, your new home must be your primary residence, and you must move in within 60 days of closing. You should also have enough money for a down payment and to meet the HECM financial requirements.
Amount of loan: up to $822,375
Loan term Variable APR Variable
There is no requirement for a minimum credit score.
