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The Best Reverse Mortgage Companies

Where Can You Find the Best Reverse Mortgage Companies?

If you're age 62 or older, you may have received information regarding reverse mortgages as a means of increasing your income during your retirement years. What is a reverse mortgage, and how does it work?

Unlike a traditional mortgage, where you pay a lender monthly and build up the equity in your home, a reverse mortgage allows the borrower to convert the already-established equity in their home into cash. In other words, with a reverse mortgage, you receive payments from the lender based on the value of your home and the amount of equity you've built up over the years.

Sunday, March 7th

2021 Reverse Mortgage Company Reviews

TopConsumerReviews.com Best-In-Class Blue Ribbon Award Liberty Reverse Mortgage Review 5 Star Rating

Liberty Reverse Mortgage

5 Star Rating TopConsumerReviews.com Best-In-Class Blue Ribbon Award

Are you looking for a reverse mortgage lender that is transparent, experienced, and offers a satisfaction guarantee that includes competitive pricing? Liberty Reverse Mortgage should be at the top of your list.

Liberty Reverse Mortgage offers three main types of reverse mortgage:

  • HECM Loan
  • HECM Zero
  • HECM for Purchase (to buy your next home)

To determine which of these loan products is best for your situation, you can find more detailed information under the "Products" link at the top of the Liberty website. You may also want to look under the "About Us" heading to get reverse mortgage information specific to your state; at the time of our review, Liberty was not offering loans in the state of Utah, for example.

Best Reverse Mortgages

Getting started with Liberty is simple: enter your age, approximate value of your home, and remaining mortgage balance amount on their main page, under "Try Our Free 2-Step Calculator". On the next page, you'll be asked to enter your address and phone number, which Liberty will then verify to make sure the information matches. Finally, you'll be taken to a summary report that gives you details about any products for which you are eligible, approximate interest rates, and the available loan amount.

On the summary report we received, interest rates ranged from 3.39% to 5.38%, depending on the type of reverse mortgage. We were happy to see that Liberty doesn't charge any up-front lender fees, and that any fees necessary for closing can be financed into the mortgage itself if the home has sufficient equity. You can find out more about Liberty's fees by clicking on the "Reverse Mortgage Fees" link on the left-hand side of the page. There, you'll also see links for more details on the application process, eligibility and requirements, and the mandatory HUD counseling.

Liberty is the only reverse mortgage lender we found that offers any sort of guarantee. Known as the "Liberty Iron Clad Guarantee", they offer their customers an unparalleled sense of security during the lending process:

  • Fair and competitive pricing, with a $100 gift card given to any customer who gets an offer from a competitor that Liberty can't match or beat
  • Closing within 60 days from the date the loan application is received and HUD Counseling is completed - or they'll issue a $500 credit towards closing costs
  • Weekly updates during the loan process
  • Available customer service representatives during standard business hours (PST)

Although there is no specific page for customer testimonials on the Liberty website, we found many reviews praising their services - consistent with their A+ rating at the Better Business Bureau.

In short, while Liberty may not have the name recognition of some other reverse mortgage lenders, their commitment to customer satisfaction and transparency throughout the process make them a definite contender in the industry.

Finance of America Review 4 Star Rating

Finance of America

4 Star Rating

Unlike many reverse mortgage lenders, Finance of America does not start out with a heavy sales pitch. Instead, their website seeks to first educate and reassure prospective clients - both with their five-star average rating on TrustPilot and the clear, concise information presented on the main page.

We encourage you to take full advantage of all of the details given in the tabs at the top of the Finance of America page:

  • Optimizing Your Retirement: Buy a Home in Retirement, Stretch Retirement Savings, Sandwich Generation Finances, Unplanned Retirement
  • Easing Retirement Worries: Living Alone, Manage Healthcare Costs, Aging in Place
  • Diversifying Retirement Investments: Creative Investment Options, A Better Way to Retire
  • Caring for Loved Ones: Help Them Retire Better, Help Manage Healthcare Costs, Help Deal with Debt, Help Them Stay Independent

In order to find out more about Finance of America's reverse mortgage program, you'll either need to contact one of their specialists at their toll-free number or fill out the online form. This form isn't as obvious as their competitors' sites, but you'll usually be able to spot it at the bottom of one of the pages listed above. You'll be asked to provide basic information, such as your name and address, remaining mortgage balance (if any), and approximate worth of the home.

Best Reverse Mortgages

When we entered sample information for an average client with no mortgage balance, we were told we would qualify for a loan of approximately half of the equity in the home - slightly less than at least one of their competitors. There were no specifics offered with respect to closing costs, origination fees, and so forth, which we would have liked to see more transparently.

You should also be aware that Finance of America was only licensed in 43 states and Puerto Rico at the time of our review; you'll want to verify that your state of residence is included in their service area before submitting an application.

We were impressed with Finance of America's excellent reputation. Beginning with an A+ rating with the Better Business Bureau and continuing with dozens of positive reviews on the site, verified by TrustPilot, it's easy to see that Finance of America is a trustworthy resource when it comes to reverse mortgages. Clients described their experience as efficient, with professional and friendly experts who helped them feel secure throughout the entire loan process.

Homepoint Review 3 Star Rating

Homepoint

3 Star Rating

Homepoint is a one-stop shop when it comes to borrowing. From USDA loans to refinancing and more, their goal is to provide loans to a variety of customers - including those who are looking into getting a reverse mortgage.

Their main Reverse Mortgage page provides answers to commonly-asked questions, such as "Does the bank own my home?" and "Is a reverse mortgage expensive?" Unfortunately, to get any further information, you'll have to click on your state's link. At the time of our review, Utah was the only one not included in their list.

Best Reverse Mortgages

We also didn't find the "request quote" portion of the page to be very helpful. The very first step is to select a loan type, and the only options given are purchase or refinance - neither of which seem to apply in a reverse mortgage situation. In other words, if you want to get any information specific to your situation, you'll likely need to call Homepoint to learn more. We definitely would have liked to see more details: types of loans available, average fees and interest rates, and so forth.

On the other hand, Homepoint is one of the few reverse mortgage lenders in our review that has in-person locations in several states. So, if you'd rather be able to work face-to-face with a customer representative instead of completing the loan application process online or over the phone, it might be worth your time to see if Homepoint has a location near you. While the Better Business Bureau link on the Home Point site shows a "Not Rated" score, we found listings for individual offices with reassuring grades ranging from B+ to A+.

Homepoint earns good marks for their loan process. Still, their rating would improve with greater details about their loans and a more efficient process for getting a quote.

American Advisors Group Review 2.5 Star Rating

American Advisors Group

2.5 Star Rating

If you've ever seen an infomercial on TV regarding reverse mortgages, you're likely familiar with American Advisors Group (AAG) already. With Tom Selleck as their spokesperson and as the lender with the highest number of closings on reverse mortgages in the nation, AAG definitely has name recognition that is not easily matched by the competition.

Our experience with trying to use AAG was not as smooth as we expected from such a well-known lender. On the main page, after we clicked on the first "Learn More" button, we were asked to enter our name, address, phone number, value of the home, and any existing mortgage balance. Unlike most of their competitors, who at this stage then offer an estimate of the available loan amount, AAG only informed us that we'd be getting a DVD in the mail and a phone call from a representative. We'd definitely have preferred to get details related to any loan products for which we were eligible.

After clicking on the second "Learn More" button, we were taken to an FAQ page. For a customer just starting out, they may not even be sure what questions to ask; it would be more helpful to get a summary of their loan programs, applicable fees, and so on. Instead, the FAQ makes it very difficult to tell at-a-glance what types of loans AAG has and what a customer should expect to pay in closing costs and other fees.

Best Reverse Mortgages

However, one of the largest concerns we have with AAG is their reputation. Despite positive testimonials on their website, we found that their rating with the Better Business Bureau was only a B+ at the time of our review. Looking further, we found that in late 2016, AAG settled in court over allegations of misrepresentation to their customers: having falsely told them that "consumers could not lose their home" and telling prospective customers that "they would have no monthly payments...and be able to pay off all debts." AAG was required to pay a civil penalty of $400,000.

Given the sensitive nature of the reverse mortgage process, especially for our nation's seniors, we were very discouraged to hear that AAG had such problems with false representation.

Despite having the highest number of reverse mortgage closings in the nation, we feel strongly that your experience will go much more smoothly with another lender in our review.

Lower My Bills Review 1.5 Star Rating

Lower My Bills

1.5 Star Rating

Lower My Bills has loan products ranging from purchase and refinance to auto and personal loans. According to their site, an average of 5,000 reverse mortgages are funded each month - though they didn't specify whether that number reflects a nationwide average or just those loans that are funded through Lower My Bills.

In order to get any information about what you can borrow through this lender, you'll need to click on the "Get Started" button. There, you'll be expected to enter the typical personal details required by most lenders: name, address, approximate value of the home, phone number, and so forth.

Best Reverse Mortgages

Although Lower My Bills had an A+ rating with the Better Business Bureau at the time of our review, the BBB also had information regarding a government action against the company. While the case wasn't concluded at the time, the allegations stated that Lower My Bills' "business model is founded on luring, wrangling, and capturing consumers' personal and financial information, and then selling and trading the consumer's personal information to third parties". We would recommend that prospective clients exercise caution when deciding whether or not to fill out any forms with personal information while using the Lower My Bills site.

Because you have to fill out that form in order to find out anything about Lower My Bills' reverse mortgage program, there's no way to determine what fees are charged for closing or for loan origination, what the typical interest rate is, or even what kinds of loan products are available. There's also very little information provided to the customer regarding reverse mortgages - just three short paragraphs on the main page. In order to feel confident with Lower My Bills as a lender, there needs to be much more offered to the customer prior to submitting a quote request or any identifying information.

Compare the Best Reviews

Continued from above...

The most common option is known as an HECM (Home Equity Conversion Mortgage), and these loans can be used for basic monthly expenses, medical care, or whatever need you may have. Some of the requirements of obtaining a reverse mortgage are primary residency (living in the home for at least 183 days per calendar year) and participating in a counseling session with an HUD counselor over the phone or in person. Once you have a reverse mortgage, you will still be responsible for paying all applicable property taxes, maintaining the property, and keeping your homeowners' insurance policy up-to-date.

For those shopping for the best reverse mortgage, scouring the internet first provides a large list of quality companies with the most competitive rates.

When you're ready to begin considering lenders for your reverse mortgage, you should keep in mind the following criteria:

  • Rates and fees. What will it cost you to get a reverse mortgage with this lender? Are they transparent with their rates and fees?
  • Process and approachability. It's easy to get confused by the process of getting a reverse mortgage, or by the terms and conditions once the loan is in place. Does the company seem approachable and helpful? Is the website easy to use?
  • Reputation. Is the lender a member of the National Reverse Mortgage Lenders Association (NRMLA)? Do they have a solid track record for treating customers fairly and providing enough information and support during the process?

TopConsumerReviews.com has reviewed and ranked best Reverse Mortgages available today. We hope this information helps you or your loved ones find the right Reverse Mortgage to meet your needs!

The Best Reviews of Reverse Mortgage Companies