This article will discuss AAG Reverse Mortgages Review and all you need to know about it. AAG Reverse Mortgages are reverse mortgages made available by the top and well-regarded reverse mortgage loan provider, which has been functional since 2004.
Key Takeaways In This Article
• You will know more about reverse mortgages.
• You will determine the downside of getting a reverse mortgage.
• You will learn about common reverse mortgage complaints.
• You will know how long it takes to get a reverse mortgage from AAG.
• You will get detailed information on the AAG reverse mortgage lawsuit.
What are AAG Reverse Mortgages?
American Advisors Group (AAG) reverse mortgages are the reverse mortgage loan offered by the American-based reverse mortgage lender. This lender provides many services and has over 50+ areas legally allowed for business activities.
The Downside Of Getting A Reverse Mortgage
Even though a reverse mortgage allows one to utilize their home’s equity to obtain credit facilities, there are still some downsides. Below are the downside of getting a reverse mortgage;
• Loss Equity
One downside of getting a reverse mortgage is that it could reduce your equity. As a result of obtaining this loan, one could risk the asset value of their properties for themselves and their family.
• Multiple Costs
Like a regular mortgage, a lender would charge numerous fees when one intends to obtain a reverse mortgage. So you could risk paying multiple fees by considering this mortgage loan.
• No Tax Deduction
Another major drawback of getting a reverse mortgage is the taxes which cannot be deducted. Individuals cannot deduct the interest on a reverse mortgage in their annual tax returns.
• Medicaid Eligibility
A reverse mortgage does not necessarily affect one’s Medicare or Social Security Benefits. But it may significantly affect the eligibility of an individual for Medicaid benefits.
Reverse Mortgage Complaints
A reverse mortgage is a complex and demanding financial product with its rules and structures. As a result of this, they are some complaints from individuals who misunderstand some provisions in the contract. Below are some of the Reverse mortgage complaints.
• Consumers Are Unable To Refinance
One of the complaints made by customers is their inability to refinance their reverse mortgages. This is a result of the primary reverse mortgage, which has stripped a large percentage of the home’s equity.
• Consumers Have Issues Repaying The Loan
Another complaint usually made by customers is the issue of repaying their mortgage loans. Customers complain that the time taken to appraise the home is usually too long to settle a loan.
• Consumers Are Unable To Chance the Terms Of The Loan
Many homeowners tend to complain that it’s challenging to change their mortgage loan terms. It’s pretty tricky to change the loan, given the high-interest rate.
How Long It Takes To Get A Reverse Mortgage From AAG?
A reverse mortgage is a credit facility that involves the usage of one’s home equity to obtain a loan. For an individual to get a reverse mortgage, they would need to wait 30-45 days. AAG must carry out an application before a reverse mortgage can be offered.
AAG Reverse Mortgage Lawsuit
Consumer Financial Protection Bureau filed a lawsuit against American Advisors Group (AAG) and a stipulated judgment day with the order to settle the lawsuit.
This lawsuit alleged that AAG increased the estimated income in the marketing of its reverse mortgage product and made a false representation to ensure its home value information was reliable.
Specifically, in 2016, the Bureau got a consent order with AAG to settle deceptive advertising claims. In addition, AAG was required to pay a civil money penalty of $400,000.
As at the stipulated final judgment and order, AAG was required to pay a $ 1.1 million civil money penalty and $173,400 in consumer redress. As of October 2021, CFPB settled with AAG over Deceptive Home Estimates.
Reasons Why People Are Disappointed With Reverse Mortgages
Despite the numerous benefits of a reverse mortgage, there are some issues. Below are the reasons why people are disappointed with reverse mortgages;
• Hidden Charges
One of the reasons why people are disappointed with a reverse mortgage is the hidden charges. A reverse mortgage loan comes with several fees and interest, which one must settle.
• Unexpected Situations
Another issue that causes disappointment with a reverse mortgage is unexpected situations. The most significant risk of obtaining this type of mortgage is the risk of an unpredictable future.
• Increased Closing Cost
Closing a reverse mortgage is very high and would require a lot of funds. An individual would need to consider other alternatives, given the cost of obtaining this mortgage loan.
Read Also:
10 Best Direct Loan Lenders For Poor Credit With Guaranteed Approvals
How To Get A Loan When You Are On Benefits
How To Calculate Payment On A Loan – An Easy Guide
Conclusion
AAG Reverse Mortgage is a mortgage provided by American Advisors Group that an individual can consider. There are many benefits and drawbacks attached to its usage, and one must be extremely careful.
We hope this article provides enough information on AAG Reverse Mortgage. Kindly visit our comment section for your views and opinions.
Website Citation:
• https://www.aag.com/reverse-mortgage/
• https://www.experian.com/blogs/ask-experian/what-is-the-downside-to-a-reverse-mortgage/
• https://www.clickquotesave.com/complaints-reverse-mortgages/
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