AAG Reverse Mortgage Review (What You Need to Know About American Advisors Group)

You may have never heard about reverse mortgages or know what they are exactly.

In this article, we’ll discuss the top reverse mortgage company in the nation, American Advisors Group, and weigh out the pros, cons, and other important reverse mortgage information. 

reverse mortgage information cd's and pamphlets

Image Source: AAG.com

First Things First: Who Is American Advisors Group?

The American Advisors Group is the top lender in the American reverse mortgage industry and is licensed to operate in 48 states. In December 2013, they were named the No. 1 Reverse Mortgage leader in the nation.

The American Advisors Group was founded by Reza Jahangiri in 2004 based on promising to give senior citizens “an income rather than taking it away.” They do this by helping seniors tap into the equity of their homes and turning it into cash to spend on anything they please.

Further claims suggest that the American advisors group reverse mortgage “makes your retirement years more financially enjoyable, and solves the common problem many seniors face of lacking retirement savings. That product is the government-insured Reverse Mortgage loan.”

Reading that statement alone, their services might already sound promising. What senior citizen wouldn’t want some help with achieving an enjoyable retirement and financial stability?

When you read the “About AAG” page further, you learn that the purpose of AAG Reverse Mortgage is to assist senior citizens with creating more funds for themselves rather than creating debt.

AAG provides customers with an American Advisors Group Mortgage Professional who gives them extensive reverse mortgage information and walks them through the process of receiving a reverse mortgage loan that suits their unique needs.

The main idea behind an AAG reverse mortgage is that the homeowner borrows money against the equity of their home and receives the funds. Those funds can be used to pay off debt or living expenses, put toward savings, or virtually anything else you need or want. 

See Also: What Is a Reverse Mortgage? – What You Need to Know (Pros & Cons, Disadvantages & Basics)

What Are the AAG Reverse Mortgage Qualifications?

AAG offers its reverse mortgage services to seniors, so one of the more obvious reverse mortgage qualifications is that you must be a senior citizen, specifically over the age of sixty two.

You also must be a homeowner, and the home must be your primary residence in which you live. Your home must be a single family home or a multi-family home where you live in one unit. Mobile homes are usually not eligible.

Here are the reverse mortgage qualifications broken down simply:

  • Must be 62 years or older
  • Must be a homeowner
  • Must primarily reside in the home you own
  • Home must be a single family home or multi-family home in which you live in one unit
  • Must complete reverse mortgage counseling

According to the reverse mortgage loan qualifications, you must simply be a senior citizen over 62 and a homeowner. That’s all it takes!

Once you have your loan, there are still a few other AAG reverse mortgage requirements for receiving an American Advisor’s Group reverse mortgage. Besides paying your AAG reverse mortgage fees and interest rates, you must continue to pay for

  • Your homeowner’s insurance
  • Your existing home mortgage
  • Your property taxes
  • Your basic home maintenance

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There Are Some Great AAG Reverse Mortgage Reviews on the Web

On the American Advisors Group website, there are a total of 1,057 reviews and a 4 out of 5 star rating overall. The majority of AAG reverse mortgage reviews have a very positive tone to them, encouraging others to sign up for an AAG reverse mortgage plan as well.

One outstanding AAG reverse mortgage review says that they provided excellent customer service throughout the entire process and that they would recommend AAG to anyone.

Many other reviews expressed appreciation for employees’ knowledgeable, attentive, and friendly nature and the ease of the application and entire process with the American Advisor’s Group reverse mortgage services.

Here is an another impressive AAG reverse mortgage review: the Better Business Bureau gave AAG reverse mortgage an excellent review, awarding them with an A+ on a scale from A+ to F.  Among 43 customer reviews on the Better Business Bureau website, 67.4% of customers had a great AAG reverse mortgage review of their experience.

About 25.6% had negative AAG reverse mortgage reviews or had reverse mortgage complaints, while 7% of customers had a neutral AAG reverse mortgage review.

Don’t Miss: Reverse Mortgage Lenders | What You Need to Know About Reverse Mortgages and Lenders

These AAG Reverse Mortgage Reviews Sound Quite Promising!

There are quite a few rave AAG reverse mortgage reviews from customers on the web. Based on the above information, it seems that this company offers great customer service and ease and flexibility for their consumers and, best of all, good money!

At first glance, the website itself looks very welcoming and informative.

Everything is laid out neatly, creating flow and smooth transitioning from one topic to another, making it very easy for readers to follow along without feeling lost or confused.

The FAQs page is clear and concise, and AAG’s contact information is clearly visible on the home page if potential clients decide they have any additional questions. They also give potential customers a completely free informational kit and offer quotes to suit the customer’s personal needs and situation.

AAG sounds like it could be a great deal for seniors who are struggling with debt or paying off their homes and are in need of quick help on cutting it down. The AAG reverse mortgage program’s objective is for seniors to tap into the equity of their homes and receive the funds from it.

Related: What Is a Reverse Mortgage Loan? Terms & Definition | Reverse Mortgage Explained

Are There Any Reverse Mortgage Complaints Involving AAG?

Has anyone ever heard of any business or company that hasn’t had any complaints from customers? There aren’t many AAG reverse mortgage complaints around the web, but that doesn’t mean they don’t exist. It’s best to look at what past consumers have had to say, positive and negative.

As stated earlier, there were about 25.6% of negative customer reviews on the Better Business Bureau website. According to the Better Business Bureau, there have been 32 AAG reverse mortgage complaints closed in the last three years, and 11 closed in the last twelve months. That’s less than one complaint a month in the past year for a large, national brand.

The most common AAG reverse mortgage complaint involves problems with product/service and the runner up of AAG reverse mortgage complaints being advertising/sales issues.

One customer complained that American Advisors Group continuously placed unwanted and unsolicited phone calls to their home. The issue was resolved by placing the person who sent the complaint on the American Advisor Group’s “Do Not Contact” list.

a screenshot of AAG's website and the discussion on whether there are any aag reverse mortgage complaints

Image Source: AAG.com

Another customer complained that they acquired a reverse mortgage, but there was a discrepancy about flood insurance.

The Flood Insurance Certification Notice at closing stated it did not require it, but AAG insisted the consumer obtain it anyway. The customer could not afford the cost, so they reached out to the BBB and the issue was resolved with a refund of any payments made regarding the flood insurance.

One complaint from 2014 even came from an attorney representative for a consumer who had acquired an AAG reverse mortgage.

The attorney filing the complaint expressed being “appalled by the tactics,” that “the advertisements of AAG are deceptive and their customer service is incompetent.” The issue was resolved due to the attorney deeming the company’s response to the AAG reverse mortgage complaint as satisfactory.

Popular Article: How Does a Reverse Mortgage Work? What You Need to Know About Reverse Mortgages

Final Thoughts on AAG Reverse Mortgage

AAG strives to help senior citizens take charge of their finances, bring financial stability, and give them the opportunity to be active individuals during their retirement years by offering them more financial freedom.

The reverse mortgage is designed to help seniors stay in their homes, helping them through times when income is low or lost.

However, because AAG reverse mortgage is still a loan, it’s pretty concerning that it claims to offer more financial freedom and security, when consumers or their families will eventually have to pay it back anyway.

For instance, if the individual receiving a reverse mortgage loan passes away and the heirs choose to keep the home instead of selling, they have to pay back the reverse mortgage loan in some way, like refinancing to a conventional mortgage loan. If the heirs of the deceased wish to keep the home, they have a debt to pay off.

When the last borrower leaves the home or passes away, the home is sold and the proceeds pay back the reverse mortgage loan.

Any remaining equity after the loan is repaid goes to the borrower, if still living, and their heirs. In other words, no one receives a benefit in the end unless the house is sold.

If the client receives Medicaid or SSI, their benefits may become affected due to having a reverse mortgage loan, despite it being considered loan proceeds and not income.

However, the client’s reverse mortgage won’t affect their Medicare, Social Security, or pension benefits. So if a client receives Medicaid or SSI, they may want to reconsider or speak with an AAG Reverse Mortgage professional personally.

All in all, an AAG reverse mortgage is worth looking into for seniors feeling strapped. The company’s integrity is in good standing, the AAG reverse mortgage requirements are simple, the majority of clients enjoy their services, and it can really help seniors get the financial stability they desire.

Read More: Top Best Reverse Mortgage Lenders | Ranking and Comparison

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