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What is a Reverse Mortgage

A Reverse Mortgage

A reverse mortgage or Home Equity Conversion Mortgage (HECM) is a way to turn the equity locked in your home into tax free cash* without having to make any monthly mortgage payments.** The funds you receive can be used for almost anything including paying off your existing mortgage (required as part of the loan), eliminating credit card debt, medical and other bills, or simply improving your lifestyle.

A reverse mortgage with AAG is a government insured loan that enables seniors to gain financial independence from their ever increasing living expenses. And the best part — you continue to own your home and there are no credit score or income requirements.***

More than half a million Americans have already discovered the benefits of a reverse mortgage. Below is a chart showing the extraordinary growth and acceptance of Home Equity Conversion Mortgages (Reverse Mortgages) since 2001.

How would you use your reverse mortgage?

* Please consult your financial advisor.
** Homeowners must continue to pay insurance, taxes and basic home maintenance during loan period.
***A credit report will only be used to check any federal tax liens or other items present that may affect qualification.

Types of Reverse Mortgages:

  • HECM Standard

The HECM Standard is helping those 62 years of age and older that own their home age in place without monthly mortgage payments.** The HECM Standard unlocks the equity in your home by turning it into tax free cash* while you retain complete ownership of your home.

*Please consult your financial advisor.
**Homeowners must continue to pay insurance, taxes, and basic home maintenance during the life of the loan.

  • HECM for Purchase

The HECM for Purchase is a home loan program for home buyers 62 years and older. It allows you to purchase a home as your primary residence with no monthly mortgage payment. You can take out a reverse mortgage on the property you are buying by showing a purchase contract and proof of down payment if you don’t have an existing reverse mortgage or FHA loan on the property you are selling. The program was designed to allow you to purchase a new principal residence and obtain a reverse mortgage within a single transaction. Of course, it also enables you the opportunity to move closer to family or downsize to a new home that meets your physical needs.

What Can a Reverse Mortgage Be Used For?

The proceeds from a reverse mortgage can be used for almost anything:

  • Pay for medical costs.
  • Pay off existing mortgage (required as part of loan).
  • Pay credit card or other bills.
  • Home repair and improvement.
  • Property taxes and home insurance.
  • Increase monthly cash flow.
  • Supplement your retirement portfolio to increase survivability %.
  • Defer accessing Social Security in order to qualify for maximum benefits.
  • Travel.
  • Gifts.

Why a Reverse Mortgage?

There are numerous benefits in obtaining a reverse mortgage over other types of loans or financial products. The most important thing to remember is that we NEVER own your home. You continue to own your property and can live there as long as you wish. All you need to do is maintain the property and continue paying your home insurance and property taxes.

Here Are Some Important Reasons to Consider a Reverse Mortgage for You:

  • Make no payments for as long as you live in your home. **
  • Continue to live in your own home.
  • Receive tax-free cash. *
  • Several ways to receive the money – lump sum, (or) monthly or a combination.
  • Repay the loan at anytime with absolutely no penalty.
  • Non-recourse loan which means the borrower can never owe more on the loan than what the house is worth.
  • Low interest rates.
  • No income or credit score requirements.

* Please consult your financial advisor
** Homeowners must continue to pay insurance, taxes and basic home maintenance during loan period.

More than half a million Americans have already discovered the benefits of a reverse mortgage. Why don’t you find out more?