You’re probably familiar with reverse mortgage companies and their television ads. Some of the benefits include easy access to cash, but they don’t get into the nuts and bolts of how a reverse mortgage works. You won’t see these ads for All Reverse Mortgage, however. The company says on its website that it does not favor celebrity endorsements. Like any financial product, reverse mortgages have their pros and cons. They can be a real life-saver in some instances with one major caveat. You must thoroughly understand the fees and your responsibilities if you take on a reverse mortgage. If you’re interested in learning more about reverse mortgages and whether one is right for you, it’s best to read up on different companies so you can find one that is committed to providing quality information and transparency to its customers. Keep reading our All Reverse Mortgage review to learn more about this lender.
Best reverse mortgage lender with the lowest interest rates
For some seniors in need of cash, a reverse mortgage might be the right choice. It's a misconception that all reverse mortgages are scams or predatory. In fact, some of the best reverse mortgages can be financially advantageous if handled correctly. If you're looking for a lender with some of the lowest interest rates available, All Reverse Mortgage might be the right choice. Between the low rates and high customer satisfaction ratings, the company seems to be a great choice for reverse mortgage loans. There are some drawbacks to keep in mind.
All Reverse Mortgage pros and cons
- Comprehensive website
- Instant rate calculator
- Stellar customer satisfaction
- Not available in every state
- Closing costs
The tone of the All Reverse Mortgage site is unusually personal and friendly. The company doesn’t shy away from listing the pros and cons of reverse mortgages. In fact, their list starts with the negatives of reverse mortgages. All Reverse Mortgage is upfront about the downside to potential borrowers from reverse mortgages, as well as the potential for financial harm — not from unscrupulous companies but from misuse of the funds, either by the senior or people around them.
Instant rate calculator
An instant quote calculator is always appreciated, as no one wants to go through the tedious process of filling out all of their personal information just to discover the rates offered aren't that appealing. All Reverse Mortgage offers a reverse mortgage calculator, which takes about two minutes to fill out All you need to do is enter your ZIP Code and address, and an estimation of your home's current value pops up, with a prompt to provide an email address for a detailed estimate on the rates you could expect to receive.
Stellar customer satisfaction
On the Better Business Bureau (BBB) website, All Reverse Mortgage garners an A+ rating. It has a positive customer rating of 4.98 out of 5 stars, with 0 complaints. All Reverse Mortgage customer reviews praise the quick process, honest and reliable loan counselors, and an overall smooth reverse mortgage process that left customers feeling guided rather than bamboozled.
Not available in every state
All Reverse Mortgage offers its product in only 15 states, which means it isn’t available for those residing outside its limited service area. This is unfortunate, as its low interest rates make it an attractive option compared to some of its competitors with broader availability.
High closing costs
High closing costs might be seen as a con, but the company’s fees are simply in line with industry standards and regulations. Any reverse mortgage has multiple closing costs. First are origination fees, the costs for starting the process of your reverse mortgage. In line with caps on fees set by federal law, All Reverse Mortgage charges 2% on the first $200,000 of your home’s value, with an additional 1% on the rest of the value of your home. The total amount cannot exceed $6,000.
Appraisal costs, also required, can vary by state. You'll also be responsible for the interest rates on your loan. Although the interest rates offered by All Reverse Mortgage have been ranked highly per the Department of Housing and Urban Development's (HUD) survey of the top lenders, reverse mortgage borrowers should still bear in mind that the closing costs can be significant.
All Reverse Mortgage offerings
Here are the different reverse mortgages offered by the company.
HECM reverse mortgage
Available to homeowners over the age of 62, a home equity conversion mortgage (HECM) allows you to stop making monthly mortgage payments and instead receive a portion of your home's equity as a lump sum, line of credit or as a stream of monthly payments. This will decrease the amount of equity you have in your home, but it will remove the burden of monthly mortgage payments and instead grant you access to a portion of your equity as cash or credit. Although your loan balance will grow over time, you remain the owner of your home.
You are not obligated to repay a reverse mortgage until you sell your home, transfer ownership to an heir, or pass on. When any of these events occur, the total on your mortgage loan balance, both the principal and the interest, becomes due. If you sell your home and the cash from the sale isn't enough to cover your debt, Federal Housing Administration (FHA) insurance will pick up the slack on what's left of your debt. This is a requirement of HECM reverse mortgages and all of them come with this FHA insurance guarantee.
If used wisely, a HECM reverse mortgage can help to ease the strain of medical bills or unexpected financial emergencies. A competent loan counselor can explain the pros and cons to you and ensure that you're choosing the right option for you and your financial needs. Homeowners cannot qualify for a HECM until they attend counseling with an approved reverse mortgage counselor.
Jumbo reverse mortgage
Put simply, a jumbo reverse mortgage is exactly what it sounds like: a reverse mortgage that's larger than what's considered standard. A HECM has a maximum lending limit of $1,089,300, while a jumbo reverse mortgage has a maximum lending limit of $4,000,000, as of 2023. To think of it as simply a bigger reverse mortgage for high-value homes would be an oversimplification, as there are some other key differences.
A jumbo reverse mortgage is a proprietary loan, which means that, unlike a HECM, it isn't insured by the government. Instead, it is a private loan. Younger applicants are also eligible for jumbo reverse mortgages, as the minimum age is 55. While a HECM has a lifetime draw period, which means that a homeowner can access their loan money indefinitely until the conditions are met for it to become due, those who take out jumbo reverse mortgages have only a 10-year draw period before they no longer have access to the funds and the debt becomes due.
Additionally, while HECM borrowers are eligible for a tenure payment plan, which means you receive monthly payments, jumbo reverse mortgage customers may only access their funds in the form of a lump sum or line of credit. However, as a jumbo reverse mortgage is not FHA-insured, you don't have to pay the mortgage insurance premiums associated with a HECM reverse mortgage.
Purchase reverse mortgage
This reverse mortgage option is for people who are interested in moving to a new home. A purchase reverse mortgage is essentially a HECM reverse mortgage loan used with the express intent of relocating to a new residence. Instead of having to go through the lengthy process of ending one mortgage and immediately undertaking another, this reverse mortgage program is designed specifically to ease a senior's transition to a home more suited to their needs. The down payment is typically somewhat larger than in a conventional home-buying scenario, but with nonexistent monthly payments, it can still be quite beneficial for a senior looking for a stress-free move.
All Reverse Mortgage pricing
Annual percentage rates (APR) for All Reverse Mortgage loans fluctuate, with the company offering regular updates on current rates on its website. Those beginning the reverse mortgage process will need to decide between a fixed rate and an adjustable rate. A fixed-rate locks you into one APR price, but you can only receive your loan as a lump sum. With a variable rate, you can access your money as a line of credit, and you'll only pay interest on the money you actually receive.
All Reverse Mortgage financial stability
All Reverse Mortgage is a direct lender that focuses its business entirely on reverse mortgage products. Its HECMs are backed by the FHA, and the company has consistently been ranked highly by HUD. Across the BBB and other consumer websites, All Reverse Mortgage reviews are excellent.
All Reverse Mortgage accessibility
Here's what you need to know as a customer about accessing the reverse mortgage loans available from All Reverse Mortgage.
All Reverse Mortgage products are available to customers in Washington, D.C., and the following states:
- New Jersey
- North Carolina
The standard HECM reverse mortgage is available to applicants over the age of 62, while the jumbo reverse mortgage is available to people over 55. You must be a homeowner, and the property must be your principal residence. In order to abide by the terms of your agreement, you must keep your home up to FHA standards throughout the reverse mortgage process.
The general customer service number is 1-800-565-1722. You can also locate a local loan counselor on the All Reverse Mortgage website.
The All Reverse Mortgage website is a wealth of information. The company prides itself on being ethical and vocally opposes the celebrity-endorsed reverse mortgage companies that run ads designed to prey on seniors. If you don't know a lot about reverse mortgages when you first visit the All Reverse Mortgage website, you will by the time you're done reading its informative articles.
All Reverse Mortgage customer satisfaction
Across the internet, the All Reverse Mortgage reviews are excellent. Between the glowing reviews and the highly informative website designed to educate and give potential borrowers a transparent look into the reverse mortgage process, the company definitely seems to be quite customer-oriented.
All Reverse Mortgage FAQ
How does a reverse mortgage work?
What is the downside to a reverse mortgage?
Is All Reverse Mortgage company legit?
How we evaluated All Reverse Mortgage
We looked at the following factors in evaluating All Reverse Mortgage:
- Pros and cons: We looked at what was great about the company's product and where there was room for improvement.
- All Reverse Mortgage products: We looked at the offerings from the company and analyzed which options would be right for different demographics.
- Pricing: We looked at the rates offered by All Reverse Mortgage and compared them to similar reverse mortgage products.
- User experience: We looked at aspects such as the company's website and accessibility to get a sense of the user experience.
- Customer satisfaction: We researched All Reverse Mortgage reviews for clarity into how real customers felt about their reverse mortgage process.
Summary of Money's All Reverse Mortgage Review
This customer-oriented company offers a great experience for its borrowers. A commitment to honest lending, membership in the National Reverse Mortgage Lenders Association, an informative website, instant interest rate calculator, and fantastic customer reviews suggest that the company puts its money where its mouth is when it comes to ethics. The company’s limited availability makes this an option only for those customers in the 15 states and Washington, D.C., where All Reverse Mortgage does business. However, if you happen to reside in one of these states, it might be a good idea to contact an All Reverse Mortgage loan counselor if you think this might be the right financial choice for your needs.