Best Reverse Mortgages 2017

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

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Mortgages rates are the interest rates a borrower obtains when taking out a mortgage. Regardless of the term of the mortgage, favorable rates are one of the most important elements to consider when choosing a mortgage lender. The rates a borrower can obtain depends on factors such as credit score, reported income, loan amount, down payment, and loan term.

The home’s location and price, in conjunction with the strength of the loan application, are another key element in how the lender calculates their risk. A lower risk will translate into a lower interest rate.

When choosing a mortgage lender, it’s important to consider whether the mortgage is conventional or government-backed, as this will affect the resultant mortgage rates. Conventional loans can have fixed or variable rates. Fixed rate mortgages have predictable monthly payments through the duration of their term. Variable rate mortgages adjust according to market fluctuations, along an agreed-upon timeline. While they’re less predictable,it’s possible that variable rate payments can decrease over time. Government-backed mortgages are backed by either the Federal Home Administration, the Department of Veterans’ Affairs, or the Department of Agriculture. They have very specific qualification requirements, whereas conventional loans are more attainable.

Before finalizing a mortgage, make sure to understand the associated costs. In addition to the monthly payments, there are additional fees and costs, such as recording fees, origination fees, appraisal fees, and closing costs. By asking questions and reading the fine print, these additional expenses do not have to be hidden costs.

Top 8 Companies

American Advisors Group
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9.8 / 10
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  • 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
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9.7 / 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!
All Reverse Mortgage
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9.6 / 10
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  • 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
Reverse Mortgage Expert
Our Partner
9.6 / 10
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  • 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
  • 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
  • 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
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  • 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
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Best Reverse Mortgages: Summed Up

RankCompany NameStrengths
1American Advisors GroupBest Overall
2LendingTreeClosing Costs/Continuing Fees, Disbursement Options
3All Reverse MortgageDisbursement Options, Types of Reverse Mortgages
4Reverse Mortgage ExpertClosing Costs/Continuing Fees, Disbursement Options

How We Compare Reverse Mortgages

Select 2 reverse mortgages companies to compare
Company Reputation - 25%
Closing Costs/Continuing Fees - 25%
Disbursement Options - 20%
Support Resources - 20%
Types of Reverse Mortgages - 10%

Customer Questions & Answers

Why do reverse mortgages have a bad reputation?

There are several historical reasons people look at reverse mortgages with skepticism. Some are due to misunderstandings, some have been mitigated by HUD, and some are still legitimate concerns.

Family problems – Reverse mortgages are federally insured, but if a borrower’s children wish to retain the home after the borrower’s death the mortgage balance must be paid off. Often, because of bad communication between parents and children, children are unaware of this fact. If the living heirs can’t come up with the money to pay off the loan within 6 months, the house will be sold to pay off the lender. Needless to say children are surprised by this if they initially weren’t aware of the arrangement.

The good news is a reverse mortgage is a non-recourse loan. Because it is federally insured, heirs can never owe more than what the home is worth.

Why is a counseling session required?

Many seniors would take a huge lump sum payout of their reverse mortgage and indulge in unnecessary spending, or shady/fraudulent business ventures or investments. Naturally this kind of irresponsible fiscal activity generated a lot of bad press.

The counseling session is meant to explain the realities of the reverse mortgage to seniors to dissuade this kind of activity. What’s more, in 2015 HUD enacted new rules to limit taking too much money too soon. Your mortgage insurance rate will increase markedly if you remove more than 60% of the loan value during the first year.

What is a non-borrowing spouse?

Up until 2015, if a borrower’s spouse was not yet 62 they were often taken off the home title so the reverse mortgage could proceed. In these situations, spouses could be kicked out of their homes if they could not pay off the mortgage balance at the time of their partner’s death. HUD recently established new protections that specifically stipulate a non-borrowing spouse can remain on the home title AND remain in the house indefinitely after their partner has died.

Will the lender need to take my home title in order to proceed with the reverse mortgage?

No. This was never true. It is simply a myth about reverse mortgages that has endured over time.

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.
Editor's Choice
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