AAG Reverse Mortgages
AAG Reverse Mortgage Review: Not all reverse mortgages are created equal and not all lenders are created equal. If you’re considering a reverse mortgage or already have a loan you haven’t been happy with, consider American Advisors Group (AAG). They have a reputation for providing superb customer service and for making the reverse mortgage process as painless as possible. They churn out more loan approvals than any other lender, two a day on average. So, you’ll have a high chance of getting approved with them.
But more than just loan approvals, what their customers love them for is their quality customer service. Their company strongly believes that no one should experience the stress of taking out a reverse mortgage. They go out of their way to make sure that you’re kept in the loop about every aspect of your loan.
Whether it’s about your income, your financial standing, your property value, or the kind of Annuity service you want, AAG will guide you through the process. And they’ll do it in a way that makes it easy for you to understand. After all, they’re backed by a full team of experts who went through years of training to help you every step of the way.
FHA-Backed Loans with AAG
Through its affiliate network, the American Advisors Group (AAG) provides a reverse mortgage product that is FHA-backed. These loans, which are aimed at non-borrowing spouses of FHA borrowers, aren’t available from another source.
An FHA-backed reverse mortgage allows homeowners to convert equity into cash. Unlike other reverse mortgage products, the loan amount isn’t fixed. Instead, each enrolled spouse can draw in a lump sum or get a monthly installment payment. The reverse mortgage lender, not the spouse applying for the loan, makes the final decision regarding lump sum or monthly draw payments, based on lender’s assumptions about the tax status of the spouse applying for the loan.
AAG Continues To Innovate
The year was 2005, not so long ago and I was experiencing the true life of a woman who didn’t realize her potential at an early age.
I worked a job that was an excellent fit for my personality and managed a group of people who were difficult to deal with and would challenge me everyday.
It was a good job and it was secure, but I was taking on a huge financial burden with each paycheck. I was spending far more than I earned and I was unhappy.
Eventually we decided we needed to make a change and began looking for ways to get out of debt. I would often talk with my husband about how it is sick that our jobs force us to pay so much to stay employed.
One day I went to a meeting that would change my life forever. That is when I decided to take a look into a different kind of financial assistance program, this is when I learned how to apply for a USDA Deferred Interest Mortgage.
I was able to get financial help for our home and our credit card debt. We saved money, relaxed and were finally able to start planning for a better future.
How Does A Reverse Mortgage Work?
You can use a reverse mortgage to pay off medical bills, travel costs, or any other expenses you might have in retirement. But most people use a reverse mortgage to pay part of their home loan. Or they take out a reverse mortgage and leave their house to family members or friends.
You can take out a reverse mortgage while you’re alive or you can wait until you die. If you take out a reverse mortgage while you’re alive, you will be able to use the money however you want.
If you take out a reverse mortgage while you’re alive, you will get a lump sum payment. When you pass away, the person who got to live in your house after your death gets the money from the reverse mortgage. Your family won’t get any of the money.
When you take out a reverse mortgage while you’re alive, you get a payment for the value of your home. When you die, the person that took out the loan gets your house or your part of your home. If you help them out, you’ll receive a certain amount of money for the remainder of their mortgage. You can spend that money on whatever you want too.
How AAG Reverse Mortgages Work
A reverse mortgage is not a loan. It’s a solution to help homeowners age 62 or older take money from their home equity without selling the property.
You may qualify for a reverse mortgage regardless of what your age or income level is, but there are specific eligibility requirements.
For example, most people need to own their own homes and have equity in their property. Some lenders may require you to have at least 80 percent equity in your home.
And while senior citizens do take advantage of these loans, some married couples will apply for a joint reverse mortgage. This way money is made available to both spouses if only one spouse qualifies.
You can get a reverse mortgage for as little as a few thousand dollars or as much as the home is worth, though most seniors draw down slightly less than the full value.
Reverse mortgages for seniors have specific underwriting rules and higher interest rates than traditional mortgages. You will pay interest on the loan monthly, while most people are used to paying interest only when the loan is being paid off.
The amount you borrow is based on how much equity you have in your home and your age. The lender gets the benefit of compound interest each month and its fee.
AAG Reverse Mortgage Payout Options
Reverse mortgages have a lot of advantages in terms of tapping into the equity in one’s own home, and in the past few years the interest rate for reverse mortgages has been moving steadily downward; but there are some significant drawbacks as well. However, in recent years the number of lenders offering a better reverse mortgage payoff option has grown, and many are looking at options.
The most common payout option for reverse mortgages has been the line of credit, but many seniors are concerned that they won’t be able to pay it off, or they might not live long enough to benefit from it. When this happens, the outstanding loan automatically becomes the responsibility of the homeowner‒s estate, and those funds will then have to be paid by the estate‒s heirs. In addition, the interest on this type of reverse mortgage is usually compounding, and as a result the loan becomes ever larger.
Mortgage options have become more attractive to many seniors and potential home buyers as a result. A start-up program called Optimum Reverse Mortgage (ORM) is offering a program similar to a steady annuity payment, with the loan being paid off over time. Many enjoy this detailed breakdown because they know exactly how much to pay each month, and they know that the loan will eventually be paid off.
Additional AAG Loan Options
While the money in your reverse mortgage is great for helping to pay down debt or replenish your savings, it may also be put to other uses. Some people use their reverse mortgage funds to pay medical bills, renovate the home, or make changes to the property.
An AAG reverse mortgage loan may also be used to cover future college tuition costs. Under certain conditions, AAG will allow you to use your income tax refund to pay off your reverse mortgage. It’s important to note that a separate tax refund can be used each year. The loan will be paid off in full when you either pass away or move into a nursing home.
What kinds of additional loan options are available for you? If you’re a senior who’s considering applying for a reverse mortgage loan, these may not be options you’re familiar with. Let’s take a closer look at the opportunities available with AAG.
How Much Will an AAG Reverse Mortgage Cost?
Is An AAG Reverse Mortgage Worth It?
If you plan on living in your house as your primary residence for the rest of your life, then you have nothing to worry about. But if you have decided that it’s time to move out of your house and if you are on the lookout for assistance with home financing, you might want to consider a reverse mortgage.
While the name might sound a bit intimidating, a reverse mortgage is a pretty simple concept. All it means is that someone else pays the mortgage off for you. You then have the option of staying put or getting the heck out of dodge.
Different Conveying Feature of an AAG Reverse Mortgage
Understanding the basic concept of a reverse mortgage is, well, basic. Getting a firm grasp on all of the details, however, might be a bit tougher. So before you get into the weeds with an AAG reverse mortgage review, let’s get one thing out of the way. What exactly is a reverse mortgage? Like I said, it means that someone else will pay off your mortgage. But some people really love the idea of a reverse mortgage. So to make it work better, there are some that might receive a part of the equity of their home back as well. Does that make a loose and lose situation for all? No, it just means that there will be some extra fees, which are definitely minor.