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Where does American Advisors Group do business?
American Advisors Group is based in Orange, CA. The company was founded in 2004 and offers reverse mortages in 49 states (and Washington, DC).
What types of reverse mortgages does American Advisors Group offer?
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.
How much can you borrow with a reverse mortgage?
Reverse mortgages are a type of mortgage that makes it possible for older homeowners to borrow money by using the value of their home as security.
The maximum loan amount with this lender is $4,000,000. Note that the maximum loan amount you can borrow will vary depending on the value of the property, your age, how much you owe on it, and your creditworthiness.
American Advisors Group requires borrowers to have an equity of at least 50% of the property value. It also has a maximum loan to value rate of 50%. That means the total debt secured by the property cannot exceed 50% of its value. Let's say you own a property with a current market value of $100k, but you still owe $20k on your mortgage. Your equity would be $80k. In this scenario, if you have good credit, you may qualify for a reverse mortgage of up to $30k.
What range of rates does American Advisors Group offer?
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
What is the estimated funding time for a home loan via American Advisors Group?
American Advisors Group will typically provide a credit approval decision in less than an hour and fund the loan within 5 and 7 days.
What fees does American Advisors Group charge for a reverse mortgage?
American Advisors Group may charge a loan origination fee of $2500 to $6000
What types of property can you use as security for a reverse mortgage with American Advisors Group?
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:
- Primary home
- Washington, DC
- New Hampshire
- New Jersey
- New Mexico
- New York
- North Carolina
- North Dakota
- Rhode Island
- South Carolina
- South Dakota
- West Virginia
- Primary Home
- Line of credit
- Lump sum
- Monthly disbursement
- HECM for home purchase