American Advisors Group Review

 

American Advisors Group at a Glance

 Loan typesReverse Mortgage Loans
 Loan featuresEquivalent to Home’s Equity Value
 Repayment terms   Varies
 ProDifferent alternatives for receiving funds from loan
 ConApplication process can take some time
 Best forRetired citizens looking to live their golden years in comfort

 

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Overview

Founded in 2004 in California, American Advisors Group was created with the goal of helping people. The company offers seniors the ability to spend their golden years in comfort with a financing product that requires little upkeep. AAG specializes in reverse mortgages, which provide a steady and reliable source of income that will not put undue burden on seniors. It will give them the peace of mind that comes with never having to worry about money. The company is one of the largest mortgage providers in the US, and was named the number one reverse mortgage company in 2013. Today, AAG is a trusted name in senior financing, and can help anyone get the funds they need for a comfortable retirement.

Best for Whom?

As they offer reverse mortgages, which are based on a home’s equity value, American Advisors Group is an ideal service for seniors and retired citizens. The company’s services are geared toward helping the older generations find comfort and a steady stream of income, by offering a variety of financing alternatives based on no-interest reverse mortgages. With a dedicated team of financial advisors and experts who are always available to address concerns, the company can help answer any questions rapidly. For seniors and retirees who are looking for comfort and peace of mind, AAG is a strong financing solution.

Loan Features

There are several aspects that set American Advisors Group apart from its many competitors. The company focuses exclusively on providing reverse mortgage loans, and its laser focus gives them several advantages. For one, they can provide customers with a variety of financing solutions based on their home’s equity, including lump sum transfers, monthly payments, and even lines of credit. The company’s support services are also highly valued, with an accredited rating from the Better Business Bureau and excellent customer ratings on several user review sites. AAG offers a wide variety of informational and educational materials, from an insightful FAQs section to a deep library of articles about reverse mortgages. The company is a member of the National Reverse Mortgage Lenders Association, and consistently receives excellent marks by its customers. Additionally, customers can use the company’s calculators to estimate how much money they can receive in a reverse mortgage based on their home’s equity.

Some American Advisors Group Highlights:

  • Accessible and highly-trained customer support
  • Variety of alternatives to receive financing
  • Non-recourse loans mean amounts never exceed home equity
  • All loans are federally insured
  • Accredited rating from Better Business Bureau
  • Outstanding educational resources
  • Jumbo reverse mortgages available for qualifying customers

The Application Process

Applying for a reverse mortgage from American Advisors Group is a straightforward process, though it can take some time until one is approved. The company works closely with all its customers from the beginning to ensure they receive the right financing solution for their needs. To get started, customers can contact AAG via telephone or fill out online form for an initial consultation. Together with one of the company’s agents, borrowers will determine the best form of financing for their needs, and begin the process of reviewing pertinent documentation and completing the necessary forms. To qualify for a loan, AAG requests that customers meet the following requirements:

  • Be 62 years or older
  • Be the owner of their homes (their names must be on the title)
  • Have no mortgage payments, or low enough that the loan can cover the remaining balance
  • Complete a counseling session with an agency approved by the US department of Housing and Urban Development.
  • Be financially capable of paying relevant property taxes, maintenance, and insurance on home
  • Not be delinquent on any federal debt

Additionally, homes being used must meet the following conditions:

  • Be a single-family home or at most a 4-unit home with one unit used by the applicant
  • Manufactured homes are allowed if they meet FHA requirements
  • Condominium homes are allowed in some cases, if they meet HUD requirements

Once applicants meet these conditions and complete the initial counseling phase, they will be informed of the amount they qualify for. They will also receive the interest rate on their loan, which will not add to the amount owed, but will determine how much money they receive.

Loan Terms – Peace of Mind in Retirement

The goal of American Advisors Group’s reverse mortgage loan is to afford senior citizens peace of mind. The company’s exclusive financing product includes several variations that make it a top choice, and guarantee that retirees will never be in over their heads in debt. Thanks to their reverse mortgages, customers who keep up with their regular home payments, including taxes and insurance, are guaranteed to keep receiving their money without having to worry about overdue payments or repossessions.

Unlike traditional personal or mortgage loans, reverse mortgages offered by AAG are tied to a home’s equity. To receive their funds after approval, customers can choose from a variety of disbursement methods. Borrowers can choose to receive a full or partial lump sum, a line of credit tied to their equity, or a monthly payment via a tenure or modified tenure plan. They can choose to combine these payment methods into a financing solution that fits with their immediate and long-term needs. For example, a borrower could choose to receive a partial sum to pay off remaining mortgage balances, and a fixed amount monthly afterwards. AAG experts help each customer determine what the best course of action is.

The company calculates loan amounts, using the following criteria:

  • Borrower age (they must be at least 62 years old to qualify, and older customers are likely to receive more cash)
  • The currently appraised market value of the home being used to secure the reverse mortgage
  • Current national interest rates, though they may vary depending on customers’ financials
  • Existing financial obligations and fees
  • The type of cash distribution that borrowers choose

Generally, customers can only receive a reverse mortgage loan with a maximum value of $636,150. However, the company offers Jumbo reverse mortgages for applicants who qualify, which can have a value of up to $6 million.

Repayment Terms

Because these loans are not paid back monthly or in installments, AAG reverse mortgages do not have set terms. Instead, they are paid in full once the last borrower leaves the property or passes away. In either case, the value of the home’s sale is used to pay off the amount of the loan awarded. In situations where the home’s equity appreciated before the mortgage expired, customers are entitled to receive any sum left over once the loan has been paid in full. Alternatively, family members of the borrower can choose to keep the home and pay the loan in full, or refinance it into a traditional mortgage loan.

How Safe is It?

Customers can sleep easy thanks to AAG’s commitment to privacy and security. The company does not collect sensitive information online, as its application process is handled via telephone and in person. Users who visit are subject to some data collection, although AAG is clear about what information they collect and how it is used. Additionally, the company complies with all federal and state Do Not Call policies.

Help & Support

Those that need to contact the company can reach AAG at any of their many locations across the United States. The company does not offer online support, but they do have several local call centers that are capable and efficient. All AAG representatives are trained in service and reverse mortgages, and can answer any questions. For customers who prefer to find their own answers, AAG offers an extensive information library on their website, along with an FAQs section. Additionally, users can request a free information packet that can be mailed or downloaded directly.

Deep Dive into Pros and Cons​

  • We found some areas where American Advisors Group could improve their service offerings:
  • The company could provide more specific information on their site regarding the application process
  • We would have liked to see more channels available for customer support
  • The application process can take some time from opening a file to being approved

There are several areas where the company shines, however:

  • Customers can retain ownership of their homes for the duration of the loan
  • AAG offers extensive educational resources for customers
  • Customers can choose how their funds are disbursed

So, Should you Borrow with AAG?

Seniors who want to enjoy their retirement without stressing about money will find American Advisors Group to be an ideal financing solution. The company’s reverse mortgage loans offer excellent flexibility and financial control. With different alternatives for cash disbursement, the assistance of trained and certified experts, and a formidable reputation, AAG is a leader in its field. The company can help seniors find the funds they need to live their golden years in peace and keep ownership of their most valuable assets with no stress.

Physical Address

American Advisors Group

3800 W Chapman Ave.

Orange, CA

92868

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