Mutual of Omaha is a well-known insurance company that has recently entered the reverse mortgage market. Mutual of Omaha’s reverse mortgage products are designed to help homeowners access the equity in their home without selling it or making mortgage payments. In this article, we will explore Mutual of Omaha’s reverse mortgage offerings, including their products, fees, and eligibility requirements.
Mutual of Omaha Reverse Mortgage Products
Mutual of Omaha offers two reverse mortgage products: the Home Equity Conversion Mortgage (HECM) and the jumbo reverse mortgage. The HECM is the most popular reverse mortgage product and is insured by the Federal Housing Administration (FHA). The jumbo reverse mortgage is designed for homes with higher values and is not insured by the FHA.
The Mutual of Omaha reverse mortgage products offer a range of benefits, including:
No monthly mortgage payments: With a Mutual of Omaha reverse mortgage, homeowners do not have to make monthly mortgage payments, reducing their financial burden and allowing them to use their home equity for other expenses.
Access to home equity: A Mutual of Omaha reverse mortgage allows homeowners to access the equity in their home, providing a source of funds for unexpected expenses or to supplement retirement income.
Flexibility: Mutual of Omaha reverse mortgages offer a range of options for how the payments are made, allowing homeowners to choose the frequency and duration of payments.
Spousal protection: The Mutual of Omaha reverse mortgage offers spousal protection, ensuring that the surviving spouse will continue to receive payments if the primary borrower passes away.
No negative equity: With a Mutual of Omaha reverse mortgage, homeowners will never owe more than the value of the home, providing additional financial security.
Fees and Costs
Mutual of Omaha’s reverse mortgage products come with a range of fees and costs, including origination fees, closing costs, and mortgage insurance premiums. The specific fees and costs will depend on the product and the individual homeowner’s financial situation.
To be eligible for a Mutual of Omaha reverse mortgage, homeowners must meet certain requirements, including:
Age: The primary borrower must be at least 62 years old.
Home value: The home must meet certain value requirements, depending on the product.
Equity: The homeowner must have enough equity in the home to qualify for the loan.
Financial assessment: The homeowner must undergo a financial assessment to determine their ability to pay property taxes, insurance, and other expenses related to the home.
Counseling: The homeowner must complete counseling from a HUD-approved counseling agency, to ensure they understand the costs and benefits of the reverse mortgage.
Mutual of Omaha is known for its commitment to customer service and has a high customer satisfaction rating. The company has an A+ rating with the Better Business Bureau and a 4.9 out of 5 rating on Trustpilot.
In conclusion, Mutual of Omaha’s reverse mortgage products can be a valuable financial tool for homeowners looking to access the equity in their home. While the products come with fees and costs, Mutual of Omaha’s commitment to customer service and transparency make it a trusted provider in the reverse mortgage market. Homeowners should carefully evaluate the costs and potential benefits of a reverse mortgage before making a decision, and should consult with a financial advisor or counselor if necessary.