“Home is where one starts from,” says T.S. Eliot, and we Americans have this sentence engraved in our veins. From childhood to adulthood and beyond, we learn to invest the most we can in the four walls we call our home. So yes, home is where our journey of financial learning starts from. But what is this journey? And when do our home investments pay us off? Two words have the answer: Reverse Mortgage. The American Advisors Group Reverse Mortgage is the key you need to unlock your mind from financial tangles and live a relaxed and peaceful retirement life. It is the golden ticket that you need to board on the train of untroubled retirement. In this article, we will walk you through everything that you need to know about Reverse Mortgage and how we can facilitate you by being your most optimal and authentic option.
What Is Reverse Mortgage?
A reverse mortgage, as the name suggests, is the opposite of a conventional mortgage. It is a loan that borrowers attain against the equity of their homes from a lender. In this case, the borrowers own their home or have at least 50% equity in their home and have the authority to live in their home while projecting it as a financial asset.
Reverse mortgage loan basically facilitates the senior homeowners who have invested their entire life savings in their home and have very little savings to lead a satisfactory retirement. Senior homeowners aged 62 or above can avail of the reverse mortgage loan against the equity of their homes to pay for their life expenses occurring in retirement.
The reverse mortgage loan liberates the senior homeowners from the tension of repaying the loan as this loan often does not get repaid by the borrower. The loan gets repaid when the borrower dies or moves away, and their heir sells the home to pay off the reverse mortgage. Any excess amount that remains from the sale after paying off the reverse mortgage automatically goes to the borrower.
American Advisor Group Reverse Mortgage offers senior homeowners reverse mortgage plans tailored according to their needs. More about their reverse mortgage service is discussed below in the article.
How Does Reverse Mortgage Work?
A reverse mortgage is much like the typical mortgage, except the roles are reversed. In the regular mortgage, the borrower makes payments to the lender. However, in a reverse mortgage, the opposite happens. The lender makes payments to the borrower. The way the payments are made (either monthly or termwise) depends on the type of reverse mortgage which the borrower chooses.
In a reverse mortgage, the borrower gets the loan against the equity of their home but still remains as the entitled owner of the home. So, as the loan period increases, the borrower’s home equity decreases. The amount of the loan borrowed depends on the value of the borrower’s property.
While the reverse mortgage may seem like the solace for senior homeowners, it still comes with a few conditions. One of the conditions is that the borrower must keep the home well maintained and in good shape. The borrower is also required to continue paying the property and insurance taxes.
Another condition implies that the borrower cannot borrow a loan that exceeds the property’s value and worth. American Advisors Group Reverse Mortgage ensures that these conditions are met by the borrower so that they do not have to deal with any unpredictable circumstances in the future.
The reverse mortgage loan is timeless, which means that the borrower can keep on taking payments from the lender as long as they don’t leave the house on a permanent basis or expire.
Types of Reverse Mortgages
One shoe doesn’t fit all. Similarly, one reverse mortgage plan does not apply to all. Every senior homeowner has their own set of needs and desires and thus requires a reverse mortgage plan suitable to their lifestyle. This calls for a need for multiple types of reverse mortgages, and fortunately, they exist. The only duty that falls upon the borrower’s shoulder is to make themselves familiarized with the different types of reverse mortgages so they can choose the best one for them.
The American Advisors Group Reverse Mortgage works on educating the borrowers regarding the different types of reverse mortgages before making a deal. This enables the borrowers to develop an open mindset and have a thorough understanding of this concept so they can jump right into their calming retirement shoes in no time.
Following are the different types of reverse mortgages available for the borrowers:
- Lump-Sum Payout: Enables the borrower to take the proceeds collectively in one lump sum. It follows a fixed interest rate.
- Annuity or Tenure: Allows the borrower to receive equal monthly payments from the lender.
- Term Payments: Ensures the lender makes regular monthly payments to the borrower over a fixed period of the term.
- Line of Credit: Acts as a reservoir and a parachute for the borrower to obtain money whenever unforeseen circumstances arise.
- Jumbo Loan: Allows borrowers to withdraw massive amounts.
Reverse Mortgage Eligibility Criteria
Reverse mortgage acts as a silver lining for the senior homeowners on the dull days of their retirement. It’s the pathway that leads to a worry-free and tranquil retirement. But to obtain this holy grail, one must pass through eligibility criteria to be entitled as truly deserving for the benefits of the reverse mortgage.
Reverse mortgages are government-sponsored as well. The borrower needs to be precautious of the fact the counselor does not end up as a scam, which is why the American Advisors Group Reverse Mortgage is the perfect choice for senior homeowners. The eligibility criteria for a reverse mortgage are the same for government-sponsored reverse mortgages as well. The following requirement conditions must be met by the borrower for a reverse mortgage:
- The borrower must be at least 62 years old or above to access a reverse mortgage.
- The borrower must be the homeowner or have at least 50% equity in the home.
- If the borrower doesn’t completely own the home yet, then they need to pay off the initial mortgage from the loan received as a reverse mortgage on first priority.
- The borrower’s home must be the primary residence of the borrower.
- The borrower must pass the financial assessment to ensure that they are able to pay the regular property taxes.
- The borrower must conduct reverse mortgage counseling with independent agencies to explore their options.
Apart from the borrower, the borrower’s property also needs to meet eligibility criteria to receive a reverse mortgage. Only the following enlisted properties can qualify for a reverse mortgage:
- Homes for single family
- Homes built after June 1976
- Townhouses or condos
- Multiple units homes, usually up to 4 units
American Advisors Group Reverse Mortgage
Every American’s dream is to live a carefree, soothing, and steady retirement with no ups and downs. After living years dedicated to hard work and unsteadiness, they crave to settle down in the late period of their life to look back and cherish the memories that made it all possible. And what better place to settle down other than the comforts of one’s own home? American Advisors Group Reverse Mortgage makes it all possible.
The American Advisors Group Reverse Mortgage enables senior homeowners to live their dream retirements. They offer reverse mortgages insured by the Federal Housing Administration (FHA), which indicates their authenticity. Their goal is to provide their clients with utmost satisfaction and relief. Their reverse mortgage allows their senior clients to free themselves from the shackles of monthly mortgage payments, permitting them to invest their savings on other expenses.
They provide their senior clients with tax-free proceeds, which makes it quite simple for them to utilize the accessed cash to make those longed-wished renovations or simply invest in their medical care. Above all, the American Advisors Group aims to grant their clients the comfort of their homes at all times, enabling them to live in the nest they built while also enjoying leisure life expenses, safely and securely.
Among all the reverse mortgage agencies, the American Advisors Group Reverse Mortgage is guaranteed to be the leading one. They provide authentic reverse mortgages to senior clients, each tailored according to their demands. They offer their clients expert consultants that keep their clients updated with all the trends and variations related to reverse mortgages. Their long list of satisfied senior clients exhibits their expertise: providing the senior homeowners with their dream retirement.
What AAG Reverse Mortgage Provides You
American Advisors Group Reverse Mortgage is guaranteed to provide senior homeowners with a respite which they have desired for a couple of years. They make it their top priority to ensure that their clients are living a peaceful retirement without any financial set blocks. The reverse mortgage acts as the finish line of the financial journey of senior homeowners, and AAG makes sure that they get the most of it.
The American Advisors Group reverse mortgage helps their senior clients to compensate for the following factors:
- The Pragmatic Planner:
Their reverse mortgage enables their clients to become pragmatic planners. It allows their clients to convert their home into a financial asset by converting its equity into monthly payments and thus living a peaceful retired life.
- The Homebody:
AAG allows their clients to make use of the reverse mortgage to make renovations and constructions which they have been planning for their home. Their reverse mortgage enables their clients to transform their homes while living in their homes.
- The Safety-Net Seeker:
AAG also provides their clients with a line of credit that acts as a cash safety net for their clients, enabling them to access emergency cash which they may need in unpredictable situations.
- The Maximizer:
AAG offers their clients lump-sum and monthly payments as the reverse mortgage, even if the value of their homes has fallen over time. Thus, clients get the maximum possible from their properties.
- The New Homebuyer:
The reverse mortgage allows AAG clients to purchase a new property or their dream retirement home without paying monthly mortgages as the reverse mortgage takes care of the expense.
- The Eager Retiree:
The American Advisors Group reverse mortgage enables clients to instantly jump into their retirement pajamas by paying off the monthly mortgage and other loans so they can freely enjoy the next calming phase of their life.
Why American Advisors Group is the Best Choice
Retirement is not everyone’s cup of tea. Some take it as the beginning of a new world, while some take it as a ticket to enter a realm of unknown financial problems. Whatever the outcome may be, the retirees wish for some sort of security. This security for elderly homeowners is achieved through a reverse mortgage, which converts their home into a financial headquarter. In other words, long-term consistent cash flows.
American Advisor Group is the best choice when it comes to reverse mortgages. This is because the Group is well familiar with the wants and needs of senior American citizens and how they wish to spend their retired life.
Bottom Line
A reverse mortgage is the ultimate solution to all your post-retirement financial problems. It detangles your financial worries and allows you to retain the home you so fondly built. It is probably the only type of loan that the borrowers never have to worry about repaying.
In short, one simple reverse mortgage results in a luxurious and pleasant retired life. The American Advisors Group promises to bring nothing but excellence to the table and to help clients in leading happy retirement lives.