Buying guide for best reverse mortgages
Ready to take out a reverse mortgage? Choose from the best:
Healthcare, housing and daily expenses only become more complicated as we age. That’s why, if you’re a senior who’s also a homeowner, you may want to consider a reverse mortgage to make your financial situation more manageable. It’s a viable borrowing option, as many have a significant portion of their wealth tied to their homes.
A reverse mortgage essentially provides an additional stream of income, but unlike traditional loans, you don’t have to pay it off unless you sell your home, move out permanently or pass away. If you’re 62 or older, you can apply to receive a loan that’s made against your home equity.
You don’t have to make monthly payments, and you can typically use the funds as you see fit. Whether you want to make investments, renovate your house or save for a rainy day, a reverse mortgage offers the flexibility to have more cash on hand when you need it.
Editors' picks
Longbridge Financial Reverse Mortgage
Editors’ Favorite
Age Requirement: 55+ | Average Interest Rate: 6.25% | Loan Amount Max: $4 million
The Longbridge Financial Reverse Mortgage is a non-recourse loan, meaning you’ll never owe more than the home’s value when it’s sold. There are scenarios where homeowners as young as 55 years old are eligible for this reverse mortgage, making it more flexible than others that have stricter age requirements.
If you have a higher-value home, you can borrow up to $4 million, which is significantly higher than the standard. The Platinum Reverse Mortgage does away with mortgage insurance premiums, effectively reducing upfront costs.
If you’re anywhere between 55 and 62, it’s best to inquire about Longbridge Financial Reverse Mortgage before considering other options. Plus, there are various disbursement options, including a line of credit, a monthly deposit, a lump sum or a combination.
AmeriSave Mortgage Reverse Mortgage
Easy to Use
Age Requirement: 62 | Average Interest Rate: NA | Loan Amount: $2 million
The AmeriSave Mortgage Reverse Mortgage allows you to borrow against your home equity even without a credit score or strict income requirements. As long as you’re 62 years of age or older, have at least 50% equity and have no federal debt delinquency, you may be eligible to borrow up to $2 million.
You’ll get competitive interest rates, but the primary advantage of AmeriSave is the transparency in the application process, which allows you to weigh your options and choose the one that best aligns with your needs. You can compare AmeriSave with other lenders and easily calculate your home equity to see how much you can qualify for.
As with other reverse mortgages, it’s a non-recourse loan, giving you peace of mind that you’ll never owe more than what your house is worth if you sell it. It’s one of the easier mortgages to calculate, and customer service is highly praised as well.
Figure Lending Home Equity Line of Credit
100% Online
Age Requirement: 62 | Average Interest Rate: 6.5% | Loan Amount: $750,000
The Figure Lending Home Equity Line of Credit is easy to use, as it lets you calculate everything and receive funds online without even needing to speak with anyone. The fixed interest rates start at 6.5% APR, and eligible applicants can borrow up to $750,000 against their home equity.
If you’re 62 years of age, you can check out Figure Lending’s application online and receive money within five days if approved for an amount of no more than $400,000. That means you don’t need an in-person appraisal, making the entire application and disbursement process super smooth and easy.
It doesn’t offer age flexibility or payouts over $1 million, but for those seeking a modest loan, Figure Lending is the top choice. All you need to do is head over to the website, enter a few details about your equity and mortgage, and within minutes, the process is complete.
American Senior Lending Reverse Mortgage
Helpful Resources
Age Requirement: 55 | Average Interest Rate: 6.2% | Loan Amount: $4 million
American Senior Lending offers a reverse mortgage that allows borrowers aged 62 and older to obtain a loan of up to $4 million. The average interest rate is reportedly lower than that of some other lenders, hovering around 6.2% on average, depending on the market.
Unlike other lenders, American Senior Lending allows some homeowners aged 55 and up to borrow against their home equity, making it a more flexible option. It offers non-recourse protection, and in most cases, homeowners can access up to 52% of their home’s value in cash.
Reviews are satisfactory based on the smooth application process, competitive interest rates and extensive helpful resources. Applicants will have access to an eligibility calculator, a reverse mortgage information package and guidance from loan advisors who will support them throughout the process.
How we analyzed
We determined the best reverse mortgages based on how easy the application is, as well as customer reviews. We also considered whether they offer competitive interest rates, age requirements and the maximum borrowing limit. The best mortgages allow for access to more than 50% of equity and let borrowers as young as 55 apply.
