Compare Reverse Mortgages

From company reputation to support resources, we research everything you need to compare reverse mortgages and make a decision. Learn how our editors compare the different factors of reverse mortgages below.
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How we Compare Reverse Mortgages

Company Reputation - 25%
Closing Costs/Continuing Fees - 25%
Disbursement Options - 20%
Support Resources - 20%
Types of Reverse Mortgages - 10%

Company Reputation

Reverse mortgages were first offered by the federal government in 1988, so they are a relatively new financial product. Be that as it may, there are plenty of national and local banks who offer reverse mortgages, as well entirely online entities and aggregator websites, which offer multiple quotes from various lenders. When judging a given company’s reputation we look at the following factors:

Years In Operation
NMLS Number
FHA/HUD Approved
NRMLA Member
BBB Grade
BBB Complaints
Equal Housing Lender
Member FDIC

Reverse Mortgages with the Best Company Reputation:

Closing Costs/Continuing Fees

Every reverse mortgage has two fees associated, which help the FHA insure the loan. Initial mortgage insurance premium, or IMIP, is a one-time fee that goes to the FHA upon origination. Also, a 1.5% mortgage insurance fee is charged annually.

Beyond this, fees private banks and online portals can tack onto this fluctuate wildly. Much of the bad reputation the reverse mortgage market gets is because of this. And since most all extra fees don’t have to be paid out of pocket and can simply be rolled into the balance of the loan, it is easy for unscrupulous lenders to take advantage of unwary seniors and nickel and dime them to death with excessive or ongoing fees.

With all HECMs you must pay the two FHA-related insurance fees, and the fee for your third-party counseling session (usually $125).  We rate companies in this category by the reasonableness of their associated fees after these three.

- Origination Fee
- Servicing Fee
- Mortgage Insurance
- Closing Costs
- Appraisal Fee
- Title Insurance
- Credit reports

Reverse Mortgages with the Best Closing Costs/Continuing Fees:

Disbursement Options

Here we assess the options a given lender offers for their reverse mortgages. It is also important to note that all reverse mortgage lenders have different rate and closing cost structures depending on their disbursement options. Where one might offer the best rates for monthly payments, another may offer the best rates and fees for a lump sum payout. We recommend comparing multiple companies and asking as many questions as you can to get the full story on rates and any one time or continuous fees (see below) associated with your preferred disbursement options.

Lump sum in cash at settlement
Monthly payment
Line of credit (similar to a home equity line of credit)
Some combination of the above

Reverse Mortgages with the Best Disbursement Options:

Support Resources

Here we rate how much informational and customer support a given reverse mortgage lender gives its potential clients.

Rev Mtg Calculator
Online Quote
Mobile App
Online Information
Print Information if requested
Telephone Support
Email Support
Online Chat Support

Reverse Mortgages with the Best Support Resources:

Types of Reverse Mortgages

There are two types of reverse mortgages that are not federally insured.

Single Purpose Reverse Mortgage: A single purpose reverse mortgage is usually offered by a non-profit or government agency to seniors of low income. These differ from a home equity loan as they can only be used expressly for the purpose stated.  Also, since they are not federally insured the loan has to be covered in the event the home’s ownership changes, the borrower moves to a different primary residence, or the borrower passes away.

Proprietary Reverse Mortgage: A proprietary is an uninsured, unregulated reverse mortgage offered by a private bank. Sometimes called “jumbo” reverse mortgages, these are typically for higher value properties that exceed the HECM limit of $625,500.

For our purposes, we will be featuring companies that provide the different types of federally insured HECMs, and also some that feature jumbo reverse mortgages:

-HECM
-HECM for Purchase
-HECM Refinance
-Proprietary Reverse Mortgage
-Fixed Rate
-Adjustable Rate

Reverse Mortgages with the Best Types of Reverse Mortgages:

Full Reverse Mortgages Comparison

Company ReputationClosing Costs/Continuing FeesDisbursement OptionsSupport ResourcesTypes of Reverse Mortgages
American Advisors Group Reverse Mortgage9.510.010.010.09.0
LendingTree Reverse Mortgage9.010.010.010.09.0
All Reverse Mortgage9.09.710.09.810.0
Reverse Mortgage Expert9.510.010.010.07.5
Finance of America Reverse9.010.010.09.49.0
Reverse Mortgage Advisors of America9.210.010.09.09.0
Good Day Reverse Mortgage9.010.010.010.07.0
Reverse Mortgage Educator9.010.09.010.07.0
Home Point Financial Reverse Mortgage8.010.010.010.07.0
Live Well Financial Reverse Mortgage8.09.010.010.07.0
Reverse Mortgage Funding9.07.010.010.08.0
Liberty Reverse Mortgage8.08.010.010.07.0
NewDay USA Reverse Mortgage7.09.010.08.07.0
Proficio Mortgage Reverse Mortgage6.08.010.010.07.0
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Latest Reviews

Reviews help other customers make decisions. Share your experience with Reverse Mortgages
P
Phillip M
Garden Grove, California
4/29/2017
I called AAG with not knowing if i was to stay in my home or move in the near future. AAG explained that if moving was a potential future plan, then we could pay on the reverse mortgage at our own pace and time as we go. No late payments, no credit hits, no foreclosure, no 30 day regimen. That way, every dollar we put in the loan to pay off the balance owed will be placed in a growth account/ line of credit, growing at the same rate as the interest on the loan. That allows me to control my balance if I want to sell in the future, deduct from taxes the interest paid, and to have access to more tax free money later if I don't sell. This is a great product no matter what the future plans. Bring it on!

Tom C
San Diego, California
4/1/2017
We were shopping for minimum closing costs. Initial brokers wanted over $11,500. Found Good Day on the web. Jason Heyl was our Good Day broker. He was right on top of everything. Very professional and responsive. He quoted us closing costs of $5600, half of all the other companies we had contact. On the day we signed doc he told me he was able to get a $2000 credit. That made the total closing costs $3600! Using Jason and his company was not a good day, it was a GREAT DAY! I would recommend Jason without reservation.

B
Bonnie C
Harrington, Delaware
3/28/2017
What does it entail. What do I have to do

Reviews help other customers make decisions. Share your experience with Reverse Mortgages