American Advisors Group is based in Orange, CA. The company was founded in 2004 and offers reverse mortages in 48 states (and Washington, DC).
American Advisors Group allows borrowers to apply for the following types of reverse mortgage.
Lump sum. The borrower can access the entire amount immediately. However, you will need to pay interest on the entire amount regardless of whether you spend it.
A line of credit. This is a more flexible option that allows borrowers to only borrow (and pay interest) on the amount they withdraw from their line of credit. In the case of reverse mortgages, the amount of cash available in your line of credit increases as time goes by.
Monthly disbursement. With this option, you get a monthly allowance. This is a good option if you need an additional source of income to cover your living expenses. It can be used in combination with a line of credit for additional flexibility.
Reverse mortgage rates can be fixed or variable. Fixed rates do not change over the life of the reverse mortgage, but they are only available to homeowners who choose a lump sum payment reverse mortgage. Adjustable reverse mortgage rates are used for borrowers who choose a line of credit or regular payments. They depend on two factors: an index and the lender's margin. Combined they form the adjustable rate charged to borrowers.
Reverse mortgages use the London Interbank Offered Rate, also known as LIBOR, as an index. American Advisors Group has a margin rate of 4%. To illustrate, if the LIBOR were 4%, the reverse mortgage rate would be 8%. Remember this rate does not include origination, servicing or counseling fees
American Advisors Group will typically provide a credit approval decision in less than an hour and fund the loan within 5 and 7 days.
American Advisors Group may charge a loan origination fee of $2500 to $6000
Lenders often have restrictions on the type of properties they will accept as security for a reverse mortgage. American Advisors Group will consider lines of credit secured by the following property types:
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