The most well-recognized name in reverse mortgages in the U.S., AAG is our pick for best overall thanks to its wide array of reverse mortgage products and its commitment to educating its borrowers.
AAG offers five different reverse mortgage products:
- Lump-sum payout: This option allows for the largest immediate cash payout, up to 60% of the qualifying amount in one single payment.
- Growing Line of Credit: As the name says, this line of credit sees the untouched principal grow over time, and is therefore best used sparingly for unexpected expenses.
- AAG Advantage Jumbo Loan: This proprietary loan allows borrowers to access up to $4 million at closing. Other advantages include eliminating your monthly mortgage payment, and not having to pay mortgage insurance.
- Term or Tenure: Term reverse mortgages allow borrowers to receive payments for a set amount of time (the term). With the tenure option, on the other hand, you receive payments so long as you live in the home and meet the loan terms.
- Reverse for Purchase: This option is best for people looking to downsize, since it allows you to buy a home, without incurring monthly mortgage payments.
Potential initial costs of a reverse mortgage with AAG both include and are affected by several factors, such as PMI (Private Mortgage Insurance), interest rates, origination fees, your payment choice, appraisal and title search fees, among other closing costs. This can total anywhere between $6-$8k.
Though AAG does not charge a servicing fee throughout the life of the loan, you will have to pay an annual PMI, as well as an upfront premium payment at closing. Additionally, as with any reverse mortgage, you will also be responsible for the real estate property taxes and homeowners insurance. This may add up to $9k in annual costs.
Typical turnaround time is 30 days, from submitting the application to closing time.
- Loans up to $4 million with AAG Advantage
- Free online reverse mortgage calculator with pre-qualification form
- Multiple reverse mortgage options
- Educational resources include free information kit and expert customer service
- Jumbo HECMs only available in 24 states
- Fees and initial costs can go up rapidly