Mutual of Omaha Reverse Mortgage Review
Mutual of Omaha is a Fortune 500 company with a history going back to 1909. Mutual of Omaha specializes in annuities, home financing and several insurances such as long-term care, life, disability and Medicare supplement.
Mutual of Omaha rebranded subsidiary Synergy One Lending in 2019 to create Mutual of Omaha Reverse Mortgage. The lender offers various loan options to help customers through transitions later in life.
- Multiple reverse mortgage products
- Online application
- Mobile app speeds up processing
- Several reverse mortgage calculators and educational videos
- Financial stability
- No reverse mortgage loan rates or fees on the website
Mutual of Omaha Reverse Mortgage Products
Mutual of Omaha offers four reverse mortgage solutions with no monthly payments. You pay off your loan with proceeds from the sale of your house when you move out. The exception is that the sale may be delayed as long as your spouse lives in the home.
- A Mutual of Omaha reverse mortgage loan is a home equity conversion mortgage (HECM) regulated and insured by the Federal Housing Administration. This financial tool allows retirees to cash out on the equity in their homes. Borrowers receive a lump sum or monthly payment.
- Mutual of Omaha’s reverse mortgage refinance is for consumers who want to take advantage of improving housing market conditions. Consider a refinance to get access to more funds when the value of your home increases.
- Mutual of Omaha HECM for Purchase (H4P) allows seniors to buy or build a new home by taking out a reverse mortgage on the property. This loan requires a substantial down payment to cover the equity requirement for the loan. This product allows retirees to easily downsize or buy their dream home without the monthly burden of a mortgage payment.
- The HomeSafe Reverse Mortgage from Mutual of Omaha gives you access to greater home equity than a HECM allows. Consider this loan if your home value is over $850,000 or condo value is over $500,000. You can borrow up to $4 million.
|Mutual of Omaha Reverse Mortgage Loans|
|Standard reverse mortgage||Utilize home equity for a lump sum or monthly payout.|
|Reverse mortgage refinance||Cash out at a higher level when your home value increases.|
|HECM for Purchase||Buy a new home to facilitate aging in place with H4P.|
|HomeSafe Reverse Mortgage||For high-value homes, up to a $4 million payout.|
Mutual of Omaha Reverse Mortgage Mobile App
Mutual of Omaha Reverse Mortgage was the first in the industry to offer a free mobile app for Android and iOS. The app is a valuable communication tool for reverse mortgage clients, family members, financial advisors and HECM specialists.
Use the app to learn about the reverse mortgage programs offered and start the loan application process. Paperwork is streamlined by uploading photos and documents using the app. Other features include:
- Loan milestone notifications keep you informed of your reverse mortgage loan status.
- Communicate real-time with your loan officer or real estate agent with the built-in chat.
- Mortgage calculators provide a variety of calculations for HECM for Purchase and other reverse mortgages.
Mutual of Omaha Reverse Mortgage Costs
Typical reverse mortgage costs include title insurance, origination fee, mortgage insurance, financial counseling and an appraisal fee. The property, state and other factors influence closing costs, but you can pay for them from the reverse mortgage proceeds.
Mutual of Omaha Reverse Mortgage doesn’t publish fees on the website. We found HECM cost samples on the parent company’s site:
- Underwriting fee: $412 to $687
- Processing fee: $480 to $830
- Origination fee: $0 to $6,000
How to Apply for a Mutual of Omaha Reverse Mortgage
You have a few options for getting started with a Mutual of Omaha Reverse Mortgage application. It’s easiest to use the mobile app or click on “Contact Us” to use the form on the website. The site also lists a phone number, and there are local offices all over the country.
All communication methods get you in touch with a specialist who can help you determine if a reverse mortgage is right for you. Mutual of Omaha provides reverse mortgage calculators and videos explaining the loan options, as well. If you submit a contact form, you will provide consent to receive future marketing calls.
Mutual of Omaha Reverse Mortgage Complaints
The Better Business Bureau gives Mutual of Omaha Mortgage an A+ rating. Consumer reviews on the BBB site average 3.18 out of 5 stars, but the reviews do not specifically address reverse mortgages.
Mutual of Omaha Reverse Mortgage scores 4.86 out of 5 stars on SocialSurvey and 4.8 out of 5 from ConsumersAdvocate. ConsumerAffairs provides no star rating but notes the company’s financial stability makes Mutual of Omaha Reverse Mortgage a good choice for these loans.
The parent company, Mutual of Omaha Insurance, gets an A1 financial strength rating from Moody’s and an A+ (Superior) AM Best rating.
Mutual of Omaha Reverse Mortgage Q&A
Will the bank own my home if I get a Mutual of Omaha reverse mortgage?
You retain your home’s title with a reverse mortgage, and you still own the home until you leave the property. Mutual of Omaha also requires that you keep up on your payments, taxes and insurance to keep the title.
Who is responsible for maintaining my home with a Mutual of Omaha reverse mortgage?
You must maintain your home and foot the cost for doing so with a Mutual of Omaha reverse mortgage.
Are Mutual of Omaha Reverse Mortgage loans available in my state?
Mutual of Omaha Reverse Mortgage is a licensed lender in every state except New York and West Virginia.
How does a Mutual of Omaha reverse mortgage affect my children’s inheritance?
When you leave the home, Mutual of Omaha Reverse Mortgage will sell it to pay off the balance on your loan. Any remaining funds go to your heirs. Your heirs can keep the property by paying the lesser of the loan balance or 95% of the appraised value.
Can I get out of a Mutual of Omaha reverse mortgage if I change my mind?
Yes. You can pay the loan back in full at any time, and there’s no prepayment penalty. The payoff amount never exceeds the home’s value.
Mutual of Omaha Reverse Mortgage prioritizes educating seniors interested in tapping the equity in their homes. The reverse mortgage lender offers four loans for retirees to choose from. Mutual of Omaha clients also save time with a groundbreaking mobile app from a well-established company with excellent marks for financial stability.