Compare Reverse Mortgages
How we Compare Reverse Mortgages
There are three types of reverse mortgages: single purpose, proprietary, and federally insured. Single purpose reverse mortgages are small in scale and typically offered by non profit entities and municipal government lenders to lower income homeowners. Funds are used for things like home improvements or property taxes. Proprietary reverse mortgages are not federally insured and offered by private banks or other lenders. These types of reverse mortgages are not subject to the HECM upper loan limit, so they are usually for higher value homes. However, since these loans are not insured they tend to be more expensive.
The third type of reverse mortgage, and most ubiquitous with regard to our featured companies, is the federally-insured Home Equity Conversion Mortgages (HECMs). Lender details include the lender type, which can be a marketplace/broker/aggregator that offers multiple quotes from competing companies, or a direct lender such as a bank or credit union that issues the loan themselves. It is also important to consider the data regarding the present value of loan proceeds that are available to the borrower, and total number of loans issued by a given company for 2016. We also will be verifying the Nationwide Mortgage Licensing System ID (NMLS ID) and any and all regulatory actions taken against the reverse mortgage lender being reviewed.
There are a great deal of factors to consider when assessing the breadth of options and features particular to a given company's reverse mortgage offerings. Firstly, there are different types of HECMs which can be used for different purposes. Loan types can include the traditional HECM, HECM refinance -- when you have an existing reverse mortgage but wish to refinance into another because of more favorable rates or home appreciation, or HECM for purchase, i.e. using a new reverse mortgage to buy a house. It is also important to consider the variety of ways reverse mortgage funds can be disbursed and which one works best for you. Additionally, different reverse mortgage lenders feature different fee structures. Relevant fees can include closing fees, origination fees, maintenance fee, and appraisal fee. Finally, it is essential to measure the actual terms of the loan. Items such as maximum home size, the minimum home equity allowed for qualification, and the starting fixed and variable rates.
In order to get an accurate picture of consumers' experience dealing with a particular company, we've taken a look at the Consumer Complaint Database. This database compiles over 700,000 complaints, on a range of consumer financial products and services. Complaints are then sent to nearly 3,000 companies, giving them the opportunity to respond. The Consumer Complaint Database doesn't verify all the facts alleged in these complaints, but they do take steps to confirm a commercial relationship between the consumer and the company. We also look at the company's site features and mobile app -- if they have one. Useful site features include reverse mortgage calculators, information kits, educational resources, online chat, etc.
Full Reverse Mortgages Comparison
|Lender Details||Loans||Consumer Experience|
|American Advisors Group Reverse Mortgage||10.0||10.0||10.0|
|LendingTree Reverse Mortgage||9.5||9.5||9.5|
|All Reverse Mortgage||9.0||9.0||9.0|
|Reverse Mortgage Expert||8.5||8.5||8.5|
|Finance of America Reverse||8.2||8.2||8.2|
|Retire Secure Reverse Mortgage||8.5||8.0||8.0|
|Good Day Reverse Mortgage||7.5||8.5||8.0|
|Reverse Mortgage Advisors of America||9.0||8.0||7.0|
|Reverse Mortgage Educator||8.0||8.0||8.0|
|Home Point Financial Reverse Mortgage||7.9||7.9||7.8|
|Live Well Financial Reverse Mortgage||7.7||7.5||7.7|
|Reverse Mortgage Funding||7.1||7.5||7.2|
|NewDay USA Reverse Mortgage||7.0||7.0||7.0|
|Proficio Mortgage Reverse Mortgage||7.2||6.8||7.0|
|Liberty Reverse Mortgage||7.0||6.9||7.0|