American Advisors Group (AAG) Review 2022
American Advisors Group, or AAG is the leading reverse mortgage lender in the U.S. A reverse mortgage is a type of home equity loan in which a homeowner borrows money using their home equity as security for their loan. Reverse mortgages take part of the equity in your home and convert it into payments to you.
What is Home Equity?
Equity in your home refers to the difference between your home’s value and how much you owe on your mortgage. So for example, if your home is worth $200k, and you’ve paid off $100k of your principal, you have $100k of equity in your home. With a reverse mortgage, you can tap your home’s equity, which would be $100k in this example.
This makes reverse mortgages a popular option for people age 62 and older with considerable home equity because it allows them to borrow against the value of their home. With a reverse mortgage, homeowners can receive funds as a lump sum, fixed monthly payment, or line of credit. This allows homeowners in this age group to supplement their retirement income.
To choose a reputable reverse mortgage provider, it’s important to find a company that specializes in reverse mortgages. But not only that, the company you choose should be upfront about their fees and provide excellent customer support.
American Advisors Group: Brief History and Overview
Reza Jahangiri started AAG in 2004 to help senior homeowners utilize an underutilized asset—home equity. Since then, AAG has become the top reverse mortgage company in the nation. Many customers are pleased with the lender’s services due to its extensive experience in the industry, vast product range, transparent pricing, and fast closing times.
Company Facts and Figures
- Licensed reverse mortgage lender in 49 states
- Originates more than twice the loan volume of any other U.S. lender in the industry
- B+ rating by BBB
- 96% customer satisfaction rating
Pros and Cons of American Advisors Group
AAG is a highly reputable reverse mortgage lender, offering many benefits to homeowners. But like any company, it also has its disadvantages.
- Free online loan calculator
- Multiple payout options
- Access up to $4 million in equity
- More experience with Home Equity Conversion Mortgage (HECM) than any other lender
Pros and Cons of Lexington Law
- Easy-to-use smartphone app: A customer-friendly, well-made app that gets outstanding ratings from customers.
- Free consultation: Offers a free consultation to new clients, which is valuable to users who want to better understand their financial and credit history.
- Transparent fees with no upfront charges: Lexington Law doesn’t charge customers an upfront fee, unlike most companies in this field.
- Personalized services: Lexington Law assigns a paralegal to each case, allowing you to work with the same person throughout the entire credit repair process.
- Credit monitoring available: Lexington Law offers two plans that offer credit monitoring services.
- Fees can add up quickly
- Not available in Massachusetts
- Jumbo HECMs not available everywhere
American Advisors Group Products
AAG offers a wide range of mortgage products. Below is a quick overview:
|Type of Loan||Features|
|Standard Home Equity Conversion Mortgages (HECM)||Enables senior homeowners to withdraw some of the equity in their home. Borrowers can receive a HECM on their home’s value up to $765,600|
|HECM for Purchase||Allows senior homeowners to use a reverse mortgage to purchase a new home without making mortgage payments.|
|Reverse Mortgage Refinance||Allows you to get a better interest rate for an existing reverse mortgage, access more equity, or add a spouse.|
|Proprietary Reverse Mortgage||Also known as the jumbo reverse mortgage. Great for senior homeowners with high-valued properties hoping to access a greater amount of their equity. Banks and private lenders back these loans, but not the FHA.|
American Advisors Group Fees
Like a conventional mortgage, a reverse mortgage comes with certain costs. However, the costs of an AAG reverse mortgage loan will depend on your individual situation.
Here’s a general overview of some of the fees you may be responsible for:
- Appraisal fee
- Origination fee
- Closing cost fees
- Service fee
- Counseling fee
- Initial mortgage insurance premium
- Annual mortgage insurance premium
- Homeowners insurance and property taxes
- Credit report fee
- Document prep fee
- Escrow fee
- Flood certification fee
- Pest inspection
- Survey fee
- Title insurance
American Advisors Group Eligibility Requirements
AAG has clear eligibility requirements that outline whether a homeowner qualifies for a reverse mortgage.
- Must be at least 62 years old
- Your home must be your primary residence
- Must own your home outright or have 50% equity in your home
- Must meet with a HUD-approved reverse mortgage counselor
HECM Property Requirements
- Single-family homes or two-unit properties
- Manufactured homes that (built after June 1976) meet HUD requirements
- FHA-approved townhouses
- Must have the financial ability to willingness to meet your loan obligations
- Must have verifiable income, monthly living expenses, and credit history
- Must make timely payments on property taxes as well as hazard and flood insurance premiums
What American Advisors Group Customers Are Saying
Unlike most reverse mortgage lenders, AAG has a high volume of online customer reviews. A majority of AAG customer reviews are positive, averaging about 4 to 4.5 stars.
On its own website, AAG boasts a 98% customer satisfaction rating from client surveys. The average ratings on other sites include:
- 4/5 stars on Trustpilot
- 4.5/5 stars on Consumeraffairs.com
- 4.5/5 stars on Yelp.com
American Advisors Group Reverse Mortgage FAQ
What’s the difference between AAG and other reverse mortgage companies?
AAG offers an extensive suite of mortgage products. Plus, the company has exceptional customer service, transparent fees, useful educational tools, and more.
What are the downsides to a reverse mortgage?
The most glaring disadvantage of getting a reverse mortgage is perhaps the fees you may have to pay. These include property taxes, homeowners association (HOA) fees, upfront mortgage premium, and other fees.
What if my mortgage isn’t fully paid off? Would I still qualify for a reverse mortgage?
Yes. The funds from the reverse mortgage will pay off your existing mortgage. This eliminates your monthly mortgage payments completely.
The Bottom Line on AAG
If you’re looking for a reverse mortgage, then you really can’t go wrong with the American Advisors Group (if you live in any state that’s not Massachusetts).
AAG’s long track record and excellent reputation with customers make the company one of the most trusted reverse mortgage lenders to work with.
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