Tom Selleck is a well-known actor, known for his roles in television shows like “Magnum, P.I.” and “Blue Bloods,” as well as movies like “Three Men and a Baby” and “In & Out.” However, in recent years, Selleck has also become known for his role as a spokesman for American Advisors Group (AAG), a lender that specializes in reverse mortgages. In this article, we will explore what a reverse mortgage is, how the Tom Selleck AAG reverse mortgage works, and the potential benefits and drawbacks of this financial product.
What is a Reverse Mortgage?
A reverse mortgage is a type of loan that allows homeowners to access the equity in their home without selling it or making mortgage payments. With a reverse mortgage, the lender makes payments to the homeowner, based on the value of the home and the age of the homeowner. The loan is repaid when the homeowner moves out of the home, sells the home, or passes away.
There are two types of reverse mortgages: Home Equity Conversion Mortgages (HECMs) and proprietary reverse mortgages. HECMs are insured by the Federal Housing Administration (FHA) and have specific requirements for eligibility, including age, home value, and financial assessment. Proprietary reverse mortgages are offered by private lenders and have different requirements and terms.
How the Tom Selleck AAG Reverse Mortgage Works
Tom Selleck has been a spokesperson for American Advisors Group (AAG) since 2016, promoting the company’s reverse mortgage products in television commercials and other advertising. The AAG reverse mortgage works much like other reverse mortgages, with the lender making payments to the homeowner based on the value of the home and the age of the homeowner.
The AAG reverse mortgage offers a range of benefits, including:
No monthly mortgage payments: With an AAG 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: An AAG 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: AAG 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 AAG 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 an AAG reverse mortgage, homeowners will never owe more than the value of the home, providing additional financial security.
Potential Benefits of a Reverse Mortgage
Reverse mortgages can offer a range of benefits for homeowners, including:
Access to home equity: Reverse mortgages can provide a valuable source of funds for unexpected expenses or to supplement retirement income, without requiring the homeowner to sell their home.
No monthly mortgage payments: With a reverse mortgage, homeowners do not have to make monthly mortgage payments, reducing their financial burden and providing greater financial flexibility.
Spousal protection: Many reverse mortgage products offer spousal protection, ensuring that the surviving spouse will continue to receive payments if the primary borrower passes away.
Flexibility: Reverse mortgages offer a range of options for how the payments are made, allowing homeowners to choose the frequency and duration of payments.
Potential Drawbacks of a Reverse Mortgage
Reverse mortgages can also come with a range of potential drawbacks, including:
High fees: Reverse mortgages can come with high fees, including administrative fees, origination fees, and mortgage insurance premiums.
Complexity: Reverse mortgages can be complex financial products, with a variety of options and features that may be difficult to understand.