American Advisors Group Review


Rating: 9.4 / 10 (Excellent)
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How is American Advisors Group rated?
9/10
Loans
9/10
Qualifications
10/10
Reputation
10/10
Consumer Experience

American Advisors Group - Overview

Founded in 2004, American Advisors Group provides reverse mortgages to those in the senior community. If you are 62 or older, a reverse mortgage can be an excellent alternative to a home equity loan or HELOC. As with a home equity loan, you are converting a portion of your home's equity into cash. Unlike a home equity loan, a reverse mortgage is set up in such a way that you cease paying your mortgage (if you still owe) and start getting payments from the bank, either in a lump sum or monthly payments. As long as the borrower meets the following obligations the arrangement continues:

  • Must maintain residence 
  • Keep up with maintenance of the property
  • Continue to pay property taxes and insurance

AAG offers  different kinds of disbursement options. This includes a line of credit (like a HELOC), a modified tenure plan, tenure, monthly payments, full, partial, lump sum, or any combination depending on the client’s preference.

Unlike a home equity loan or HELOC, a reverse mortgage only becomes due if the borrower leaves the house or dies. What's more, since they are insured by the Federal Housing Administration, the loan technically doesn't have to be paid by the borrower or their heirs. If the borrower's family wishes to retain the house they can purchase it at a set percent of the appraised value under a special government program. Even if the house is underwater, i.e. the reverse mortgage loan amount is more than the home is worth, the FHA will ultimately cover the loan. 

Services and Features

AAG provides prospective borrowers with a handy online calculator that includes all fees and interest rate calculations so you can get an accurate picture of how much money you could expect from a reverse mortgage. As with all reverse mortgages, clients are mandated by the federal government to attend third-party counseling in order that they understand the process fully, and learn their options should the loan become due.

Services and Features

Reverse Mortgage Calculator

Online Quotation

Financial Guide

Types of Reverse Mortgage

Standard Home Equity Conversion Mortgages (HECM)

HECM for Purchase

Reverse Mortgage Refinance

Single-Purpose Reverse Mortgages

Proprietary Reverse Mortgage

Qualifications

Counseling

Home Owner

Amount of Equity

Not Stated

Age

62 and older

Accreditation

Member of US Department of Housing and Urban Development

Member of Nation Reverse Mortgage Lenders Association

Insured by FHA

Approved by Equal Housing Opportunity

Plan Details

No Pre-Payment

Not Stated

No Monthly Servicing

Not Stated

Interest Rate

Not Stated

Closing Cost and Fees

Not Stated

Help and Support

Mobile App

Telephone Support

Webinars

Email

FAQs

 

Reverse Mortgage as an option to Home Equity Loan or Cash Out Refinance

If you are 62+ and own your home, a reverse mortgage is a great alternative to a home equity loan or cash-out refinance. Reverse mortgages were specifically designed to help seniors stay in their houses and draw extra money in retirement. As with a home equity loan, you can receive the money as a lump sum to do with as you wish. But that is where the similarities end. With a reverse mortgage you will not be making a second mortgage payment, and you can elect to receive the money in monthly payments to augment your income or retirement benefits. As long as the senior is clear about the occupancy stipulations and other rules, it's worth considering seeing all the different benefits. AAG provides a free information kit online. 

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