10 Best Reverse Mortgages of 2017

Read and compare the Best Reverse Mortgage lenders. We review and rank the Top Reverse Mortgage lenders. 

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A reverse mortgage allows a homeowner to borrow money against the value they’ve accumulated in their home. Instead of making payments to a lender, the lender makes payments to the homeowner, based on a percentage of their home’s equity. Over time, this means that the homeowner’s debt increases as their equity decreases.

Reverse mortgages are meant to help people over 62 years old obtain income for their retirement, while still retaining the title to their home. If the names of both spouses are on the mortgage, the bank cannot sell the house until the surviving spouse passes away, or if any of the following situations occur: they become delinquent on property taxes or insurance, the home falls into disrepair, they move, sell the home, or pass away. In any of these scenarios, the loan automatically becomes due, but until then, repayment of the mortgage—either the principal or the interest—isn’t required until the borrower dies or the home is sold.  

The most important things to consider when choosing a lender for a reverse mortgage are the company’s reputation, the closing costs and associated fees, how the money is disbursed, and finally the lender’s customer support and reviews. Closing costs can vary greatly between lenders, so before agreeing to a loan, it’s important to evaluate whether the fees are reasonable or unnecessary. Another factor to watch out for are high interest rates, which can significantly lower the amount of your monthly payment.

Top 10 Companies

#1
American Advisors Group
Our Partner
10 / 10
  • Our #1 Choice, Rated B+ by the BBB
  • Free Information Kit on Pros & Cons
  • Member of NRMLA
  • Approved Member of US Department of Housing and Urban Development
  • Helpful Team: They can help decide if a Reverse Mortgage is right for you
  • Eligibility: Age 62+, $100K+ home value with 50%+ equity
#2
LendingTree
Our Partner
9.5 / 10
  • Save money by easily comparing rates from multiple lenders
  • A+ Rating with the BBB
  • Choose the payout option that works for you
  • No mortgage payments; still pay taxes and insurance
  • Still own and live in your home while receiving cash
  • Generally will not affect your social security
  • When banks compete, you win!
#3
All Reverse Mortgage
Our Partner
9.0 / 10
  • ZERO Closing Cost Options Get up to $15,000 More Cash
  • HUD Approved Lender - A+ BBB & 100% positive feedback
  • Over a Decade of Experience Lending Federally-Insured Reverse Mortgages
  • Fixed Rate 3.99% (5.82% APR)
  • Offers Free Same Day Quotes by Email & Information Kit
  • Free Calculator, Mobile App & Online Application
#4
Reverse Mortgage Expert
Our Partner
8.5 / 10
  • Free Information Kit on Reverse Mortgages
  • Brand is Powered by AAG, The industry leader
  • Proud Member of NRMLA
  • Great customer satisfaction rating
  • US Department of Housing and Urban Development Lender
  • Eligibility: Age 62+, $100K+ home value with 50%+ equity
  • Get Free Download of Reverse Mortgage Guide
#5
Finance of America Reverse
Our Partner
8.2 / 10
  • Equal Housing Lender
  • NRMLA Member
  • Member of National Aging in Place Council
  • Borrow up to $2.25 Million with HomeSafe Reverse Mortgage
  • HomeSafe offers No initial disbursement limitation or mortgage insurance premium if qualified
  • Competitive fixed interest rate and lump-sum draw
#6
Reverse Mortgage Educator
Our Partner
8.0 / 10
  • Change the way you look at retirement! 
  • Reverse Mortgage Calculator and free information kit
  • Attend a session with an HUD-approved counsellor
  • Unique loans designed especially for senior homeowners
  • Rated A+ by the BBB
  • NRMLA Member
  • Eligibility: Age 62+ 100k+ home value with 50% equity
  • Mortgage Calculator
  • Online Quotes
  • Refinance Mortgage Loans
  • New Homebuyer Guide
  • Rated A+ by the BBB
#8
  • Approved by the Department of Housing and Urban Development
  • Reverse Mortgage Calculator
  • Free Guide in Reverse Mortgage
  • Member of NRMLA
  • Rated A+ by the BBB
#9
  • Free H4P Buyer’s Guide
  • Online Calculator
  • Rated A+ by the BBB
  • Federal Housing Administration Insured
  • No Pre-Payment Penalties
  • No Required Monthly Payment, Interest and Principal
#10
NewDay USA
7.0 / 10
  • No Down Payment Home Loans
  • 24/7 Telephone Support
  • Free VA Appraisal
  • Refinance Your Mortgage
  • NewDay 100 VA Loan
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Best Reverse Mortgages: Summed Up

RankCompany NameStrengths
1American Advisors GroupBest Overall
2LendingTreeLender Details
3All Reverse MortgageLender Details

How We Compare Reverse Mortgages

Select 2 reverse mortgages companies to compare
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Lender Details - 30%
Loans - 40%
Consumer Experience - 30%

Customer Questions & Answers

What is a reverse mortgage?

A reverse mortgage is an FHA-insured loan available to homeowners over the age of 62 which enables them to convert their home's equity into cash. It can either be disbursed as a lump sum, monthly payments, a line of credit, or any combination of these. Unlike traditional mortgages, this loan increases in value over time and only becomes due upon the death, or relocation of the homeowner. If the homeowner or their heirs are unable to pay the loan back, either through selling the house or paying it off outright, the loan is covered by the federal government.

How does a reverse mortgage work?

As with home equity loans, reverse mortgages are primarily based on the of amount of accumulated home equity. Reverse mortgages, which are intended for those with paid-off, or small, mortgages, take a percentage of this equity, and pay it back to the homeowner. The resulting funds are typically meant to supplement borrowers’ retirement income.

What does HECM stand for?

HECM refers to the Home Equity Conversion Mortgage program. This program, which is managed by the Federal Housing Administration, allows for the withdrawal of a portion of home equity. Under the tenants of the HECM program, borrowers may select their preferred method of withdrawal. Options include a line of credit or a fixed monthly sum.

What is a reverse mortgage line of credit?

A reverse mortgage line of credit, otherwise known as an HECM line of credit, is backed by the FHA and operates similarly to a traditional HELOC. The key difference is that while HELOCs require monthly repayments, HECM lines of credit defer all repayment until such time as the last borrower dies or vacates the home.

Resources From Our Editors
Best Jumbo Reverse Mortgages
In order to find the best jumbo reverse loans, we looked at interest rates, lender's reputation, and loan conditions.
Eight Common Questions About Reverse Mortgages Answered
1. What Are the Requirements of a Reverse Mortgage? In order to qualify for a reverse mortgage, the Federal Housing Administration has mandated several requirements. First and foremost, any potential borrower must 62 or older. Furthermore, an applicant must must own...
How to Qualify for a Reverse Mortgage
How Does a Reverse Mortgage Differ From a Home Equity Loan? Home equity loans are loans which utilize the equity in a home as a form of collateral. They are essentially second mortgages that must be paid back alongside the first...
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