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American Advisors Group (AAG) Review
4.7 Overall Rating
Customer Service
Product Options
Closing Speed
Technology
Bottom Line
A reverse mortgage is a type of home equity loan for those 62 and older that lets borrowers convert a portion of their home equity into cash in the form of monthly payments, a lump sum or a line of credit. When it comes to choosing a reverse mortgage lender, you want to find a company who specializes in reverse mortgages, discloses its fees and offers top-notch customer service.
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About American Advisors Group (AAG)
A reverse mortgage is a type of home equity loan for those 62 and older that lets borrowers convert a portion of their home equity into cash in the form of monthly payments, a lump sum or a line of credit. When it comes to choosing a reverse mortgage lender, you want to find a company who specializes in reverse mortgages, discloses its fees, and offers top-notch customer service.
Since its inception, AAG has become the country’s largest reverse mortgage lender in the country. They are fully accredited with the Better Business Bureau and was a finalist for its Torch Awards for Ethics in 2020.
AAG was acquired by Finance of America Companies (Finance of America Reverse) in 2023, effectively consolidating two leading providers of reverse mortgage loans. Prior to its merger, AAG’s sole focus on reverse mortgage lending is why it ranked as the number one reverse mortgage lender in the country, according to data from the Department of Housing and Urban Development. Customers speak highly of the service they get from AAG, because its experience, product range, transparent pricing, and fast closing times are among the best in the industry.
Pros
- More experience with HECM than any other lender
- High customer satisfaction rating
- Quick closing periods
- Offers Jumbo reverse mortgages
- Approved lender with the U.S. Department of Housing and Urban Development (HUD)
Cons
- Available in all states except MA
AAG Reverse Mortgage Costs
Like conventional mortgage loans, you’ll pay upfront fees for a reverse mortgage in addition to ongoing costs, such as loan interest, mortgage insurance premiums, property taxes, homeowners insurance, maintenance and any applicable HOA fees. Below is an overview of common reverse mortgage fees.
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Appraisal Fee: $450 on average, but depends on home value and varies by region
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Counseling Fee: $125
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Credit Report Fee: $20-$50
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Document Prep Fee: $75-$150
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Escrow Fee: $150-$800
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Flood Certification Fee: $20-$30
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Pest Inspection: $100
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Recording Fee: $50-$500
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Survey: $100-$250
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Title Insurance: Varies by loan amount and region
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Initial Mortgage Insurance Premium: 2% of the maximum claim amount, paid to the government
Loan Origination Fee: The greater of $2,500 or 2% of the first $200,000 of your home’s value plus 1% on amounts over $200,000, with a maximum cap of $6,000
American Advisors Group Products
Nearly 98% of AAG customers report being satisfied with AAG’s loans and their experience with the company*. AAG offers an extensive list of reverse mortgage products, including standard HECM loans, HECM for Purchase and HECM refinancing. AAG is also one of the few reverse mortgage lenders offering jumbo loans up to $4 million, which you’ll need if your home’s value exceeds the FHA 2023 reverse mortgage lending limit of $1,089,300.
*Based on survey results from September 2021.
| Type of Loan | Features |
|---|---|
| Standard Home Equity Conversion Mortgages (HECM) | Borrowers can qualify to receive a HECM (adjustable rate or fixed rate) on their home’s value up to $1,089,4300 (as of January 1, 2023). |
| HECM for Purchase | A loan designed to help senior homeowners purchase a new home while obtaining a reverse mortgage in the same transaction and paying only one set of closing costs. |
| Reverse Mortgage Refinance | If you have an existing reverse mortgage, a reverse mortgage refinance offers a way to get a better interest rate, access more equity due to an increase in the home’s value, or add a spouse. |
| Single-Purpose Reverse Mortgage | A single-purpose loan is a less expensive option designed for a specified and approved purpose (i.e., property taxes or repairs). Not backed by HUD / FHA. |
| Proprietary Reverse Mortgage | Also called Jumbo Reverse Mortgage Loans, these types of loans are for those with substantial home equity who need more than the HECM’s federally set borrowing limit. They are backed by banks and private lending firms and are not insured by the FHA. |
American Advisors Group (AAG) Product Eligibility
AAG abides by HUD’s list of requirements for HECMs for seniors.
| Requirement | Specific Terms |
|---|---|
| Borrower Requirements | Borrowers can qualify to receive a HECM (adjustable rate or fixed rate) on their home’s value up to $1,089,300 (as of January 1, 2023). |
| HECM for Purchase | Borrower must:
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| Property Requirements |
(The property must also meet all FHA property standards and flood requirements) |
| Financial Requirements |
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American Advisors Group (AAG) Complaints
The Better Business Bureau rates AAG with an A- based on 750+ reviews. Phrases such as “very patient and professional”; “excellent communication”; and “very positive experience” are frequently found in customer reviews. The majority of the negative reviews seem to stem from things that AAG has no control over, such as HUD regulations.
Like many other large reverse mortgage lenders, AAG has had to reign in its advertising. In 2016, the Consumer Financial Protection Bureau fined AAG and two other reverse mortgage companies after an investigation found they used deceptive advertising practices. AAG paid the $400,000 fine and has since completely revamped its ad campaigns and practices.
Our Experience With AAG
AAG offers an online calculator so you can get an idea of the loan amounts you qualify for (some competitors do not offer this feature). We tested this feature and found its calculator to be the simplest and fastest calculator in the bunch. Simply estimate your home’s value, add the age of the oldest homeowner, and input your current mortgage balance to get a loan estimate in seconds. This feature is great for homeowners and family members who are conducting initial research of reverse mortgages.
We requested a free info kit on AAG’s website and was presently surprised at the number of educational resources that were made available to us. In addition to receiving a reverse mortgage eBook, we also got a guide tailored to children and caregivers with helpful tips on discussing reverse mortgage options with loved ones. We found this very helpful because getting a reverse mortgage is often a family decision that impacts the lives of spouses and heirs for years to come.
Overall, our experience with AAG was positive. We agree with consumer and expert claims that AAG priortizes customer education throughout the lending process. However, other reverse mortgage lenders are more transparent about the fees associated with reverse mortgages, like closing costs or service fees. Moving forward, we’d like to see AAG list applicable loan fees so customers can understand what they’ll need to spend to open a loan and carry it throughout their lifetime.
American Advisors Group (AAG) FAQs
No. Many companies charge a monthly fee to defray the costs of providing customer service, maintaining accurate records, certifying your occupancy status, issuing statements of account, issuing and collecting payments, collecting on the loan when it becomes due, and discharging the mortgage. AAG does not charge this type of lender servicing fee.
As long as you still live in the home, having a HECM doesn’t alter who can live with you. However, if you die or move, the people who live with you may have to vacate if you don’t have a co-borrower and they can’t pay off the loan.
Yes. Your existing mortgage is paid off with funds from the reverse mortgage, eliminating monthly mortgage payments entirely.
Sessions approved by the Department of Housing and Urban Development generally last between one and two hours and can be done over the phone or in person. Once you have completed your session, you’ll receive a certificate that you’ll use in the paperwork phase of the loan.
Yes. You must have hazard insurance covering your home in an amount equal to at least 100% of the property’s insurable value. You must provide your loan servicer with a copy of your hazard insurance policy when you renew each year. Failure to maintain adequate hazard insurance on your property is considered defaulting on the loan.
Reverse mortgages are non-recourse loans, which means that after the last borrower dies or moves out, the proceeds from the sale of the home are the only asset that can be taken to pay the loan balance. If the loan balance is more than the home’s value, the FHA’s insurance fund covers the difference.
Conclusion
When it comes to reverse mortgages, experience counts. AAG has the expertise to make the process easier for you. With its long track record and excellent reputation for customer service, AAG is one of the most trusted reverse mortgage lenders—particularly for those with high-value homes looking for large loans. Whether a reverse mortgage is the right choice for you depends on several personal factors. So, talk to an AAG loan counselor and ask detailed questions before signing any paperwork.