Selleck Says: A Reverse Mortgage Turns Your Home Equity into Cash That You Pay Off When You Leave the House. This statement can be a little bit misleading. It is not incorrect, but not fully accurate either. Yes, the loan turns your home equity into cash.

On June 1, 2016, American Advisors Group (AAG), announced Emmy and Golden Globe award-winning actor Tom Selleck as its national spokesperson.

A big downside to reverse mortgages is the loss of home equity. Because you're not paying down your reverse mortgage balance, you'll make less profit when you sell, or limit your borrowing power if you need a new loan. You'll pay high upfront fees.

There are several types of reverse mortgages, the most common being home equity conversion mortgages, or HECMs, which are insured by the federal government. Reverse mortgages can be expensive, compared to other types of loans. They can also put the borrower at risk of foreclosure and losing their home in certain cases.

Specifically, the CFPB alleges that AAG: Deceptively inflated home values: In marketing their reverse mortgage products, AAG provided consumers with inflated estimates of home values to entice them to enter into negotiations to open a reverse mortgage.

A reverse mortgage is a type of home loan for seniors ages 62 and older. 1. Reverse mortgage loans allow homeowners to convert their home equity into cash income with no monthly mortgage payments. Reverse mortgages can be a great financial decision for some seniors but a poor financial decision for others.

If you're a homeowner age 62 or older, a reverse mortgage can help you obtain tax-free income based on the equity in your home. A reverse mortgage might give you more flexibility in retirement and allow you to stay in your home.

A reverse mortgage loan is not free money. It is a loan where borrowed money + interest + fees each month = rising loan balance. The homeowners or their heirs will eventually have to pay back the loan, usually by selling the home.

Luckily, AAG is one of the most reputable reverse mortgage lenders in the industry. The company has over 5,000 Trustpilot reviews that average 4.6 stars.

WASHINGTON, D.C. – The Consumer Financial Protection Bureau (CFPB) today filed a complaint and proposed consent order alleging that American Advisors Group (AAG) used inflated and deceptive home estimates to lure consumers into taking out reverse mortgages.

A reverse mortgage is a loan for homeowners aged 62 and older who want to borrow against their home equity without having to make monthly payments. 1 This mortgage product can help seniors who are short on funds for living expenses.

For homeowners with few or no other assets, a reverse mortgage can provide a much-needed income supplement in retirement. It can also help pay for medical bills or other unexpected expenses. However, it has some potential drawbacks worth noting. Review our list to compare the Best Reverse Mortgage Lenders.