What Is a Reverse Mortgage in GA?
Reverse mortgages sound complicated or too good to be true, depending on who you ask. Some folks in Georgia think it’s all just a way for the bank to take your assets. No question about it, there are a lot of opinions and misconceptions about reverse mortgages and how they work. Let’s clear up all of those misunderstandings right now, here are the facts about reverse mortgages and how you can benefit from one.
Want to learn more? Click here to get free information about a reverse mortgage!
How It Works
A reverse mortgage is a loan that any homeowner aged 62 or older in the state of Georgia is eligible to access. The money comes from the equity in the home and a reverse mortgage is a way for the homeowner to turn that equity into cash. The term comes from the simple fact that instead of paying a lender monthly payments every month in a lending arrangement, the borrower takes those payments each month instead.
The borrower is not obligated to make any reimbursements on this money until such time that the home in which he or she is living is sold or they vacate the premises. During such time in which they live in the home, no payments are due and none are expected by the lending organization. However, the borrower is expected to continue making any other payments related to ownership of their home, such as homeowners insurance, HOA fees, and all applicable property taxes.
Why a Reverse Mortgage for GA Seniors?How Much Money Could You Receive?
The size of your payment is largely dependent on a number of factors, but in a nutshell, the older you are and the more equity value that is in the home, the more money you are eligible to receive. But it all starts with your age. The minimum requirement is 62 though if you are married, the youngest spouse applies. The value of the home is also a major determining facet of your amount as well as the interest rate for which you qualify. In addition, the amount of your reverse mortgage is also dependent upon the lesser of the following, either the appraised value or the HECM FHA mortgage limit, which is $625,000.
How to Collect
In order to qualify, you must own the home or have very few payments outstanding on your current mortgage, the balance of which must be paid in full at closing. The money for that payment will be taken from the funds of your loan balance. Collecting those funds is determined by the type of mortgage you select. Adjustable-rate mortgages allow you to take distributions in a lump sum, a line of credit, fixed monthly payments, or a combination of these options. Fixed-rate mortgages only provide distributions as a lump sum.
The Top Reverse Mortgage Lenders in Georgia
You may be wondering which lenders dominate the HECM market in GA. Prior to 2012, the answer was large banks like Wells Fargo, which is still the all time leader in the state.
All Time:
| Lender | Loans | Total Principal Limit |
|---|---|---|
| AMERICAN ADVISORS GROUP | 3,744 | 845,110,451 |
| WELLS FARGO | 2,013 | 353,588,744 |
| ONE REVERSE MORTGAGE LLC | 1,488 | 264,052,040 |
| FINANCIAL FREEDOM SENIOR FUNDING CORP | 1,099 | 163,773,263 |
| SAFEWAY MORTGAGE INC | 1,011 | 141,184,950 |
| UNITY MORTGAGE CORP | 726 | 101,688,773 |
| BANK OF AMERICA | 708 | 127,820,670 |
| FINANCE OF AMERICA REVERSE LLC | 698 | 176,246,225 |
| GENERATION MORTGAGE COMPANY | 489 | 89,269,825 |
| METLIFE BANK NATIONAL ASSOCIATION | 427 | 80,421,392 |
| LIBERTY HOME EQUITY SOLUTIONS INC | 425 | 80,538,569 |
| MUTUAL OF OMAHA MORTGAGE INC. | 417 | 138,615,194 |
| PARK PLACE REVERSE MORTGAGE INC | 413 | 70,470,981 |
| FAIRWAY INDEPENDENT MORTGAGE CORPORATION | 395 | 130,695,061 |
| NEW HOME FINANCE LLC | 392 | 115,009,534 |
| REVERSE MORTGAGE FUNDING LLC | 306 | 90,945,799 |
| SENIORS HOME REVERSE MORTGAGE INC | 304 | 61,402,595 |
| REVERSE MORTGAGE SOLUTIONS INC | 286 | 60,091,890 |
| SECURITY ONE LENDING | 283 | 53,214,135 |
| GENWORTH FINANCIAL HM EQUITY ACCESS INC | 225 | 39,201,410 |
However, these banks left the market around 2012, leaving companies that specialize in reverse mortgages such as AAG. Here are the leaders since that massive change.
Since 2012
| Lender | Loans | Total Principal Limit |
|---|---|---|
| AMERICAN ADVISORS GROUP | 3,443 | 794,574,361 |
| ONE REVERSE MORTGAGE LLC | 863 | 167,376,250 |
| FINANCE OF AMERICA REVERSE LLC | 543 | 150,295,825 |
| MUTUAL OF OMAHA MORTGAGE INC. | 417 | 138,615,194 |
| LIBERTY HOME EQUITY SOLUTIONS INC | 407 | 76,833,569 |
| FAIRWAY INDEPENDENT MORTGAGE CORPORATION | 392 | 129,471,561 |
| REVERSE MORTGAGE FUNDING LLC | 306 | 90,945,799 |
| REVERSE MORTGAGE SOLUTIONS INC | 286 | 60,091,890 |
| NEW HOME FINANCE LLC | 239 | 76,654,159 |
| PREMIER REVERSE mortgage LLC | 183 | 60,024,672 |
Want to learn more? Click here to get free information about a reverse mortgage!
Rates
Each month, the US Department of Housing and Urban Development publishes a list of all HECM loans originated in Georgia. Based on these data, we’ve calculated the average interest rates in each month.
Current Rates
| Date | Fixed Rate | Adjustable Rate |
|---|---|---|
| 2019-01-01 | 4.93% | 5.05% |
| 2019-02-01 | 4.57% | 5.09% |
| 2019-03-01 | 5.18% | 5.04% |
| 2019-04-01 | 4.73% | 4.78% |
| 2019-05-01 | 4.56% | 4.84% |
| 2019-06-01 | NA | 4.72% |
| 2019-07-01 | NA | 4.67% |
| 2019-08-01 | 4.93% | 4.23% |
| 2019-09-01 | NA | 4.36% |
| 2019-10-01 | 4.84% | 4.47% |
| 2019-11-01 | NA | 4.23% |
| 2019-12-01 | 4.78% | 4.25% |
| 2020-01-01 | NA | 4.07% |
| 2020-02-01 | NA | 4.12% |
| 2020-03-01 | NA | 4.08% |
| 2020-04-01 | 3.50% | 3.75% |
| 2020-05-01 | 4.31% | 3.64% |
| 2020-06-01 | NA | 3.34% |
| 2020-07-01 | 3.62% | 3.22% |
| 2020-08-01 | NA | 3.19% |
| 2020-09-01 | 3.06% | 3.15% |
| 2020-10-01 | 3.46% | 3.00% |
| 2020-11-01 | 3.12% | 3.01% |
| 2020-12-01 | 3.08% | 2.91% |
| 2021-01-01 | 3.56% | 2.84% |
| 2021-02-01 | 3.33% | 2.73% |
| 2021-03-01 | 3.12% | 2.59% |
| 2021-04-01 | 3.06% | 2.48% |
| 2021-05-01 | 3.43% | 2.47% |
| 2021-06-01 | 3.68% | 2.32% |
| 2021-07-01 | 3.31% | 2.23% |
| 2021-08-01 | 3.51% | 2.33% |
| 2021-09-01 | 3.48% | 2.31% |
| 2021-10-01 | 3.23% | 2.30% |
| 2021-11-01 | 3.06% | 2.30% |
| 2021-12-01 | 3.56% | 2.38% |
| 2022-01-01 | 3.56% | 2.37% |
| 2022-02-01 | 3.43% | 2.39% |
| 2022-03-01 | 4.12% | 2.91% |
| 2022-05-01 | 4.68% | 3.85% |
| 2022-04-01 | 3.31% | 3.27% |
| 2022-06-01 | 4.09% | 4.12% |
| 2022-07-01 | 5.18% | 4.69% |
| 2022-08-01 | NA | 5.25% |
| 2022-09-01 | NA | 5.55% |
| 2022-10-01 | 5.43% | 6.09% |
| 2022-11-01 | NA | 6.61% |
| 2022-12-01 | 5.93% | 7.08% |
| 2023-01-01 | NA | 7.13% |
| 2023-02-01 | 6.55% | 7.19% |
| 2023-03-01 | 6.18% | 7.29% |
| 2023-04-01 | NA | 7.03% |
| 2023-05-01 | NA | 7.09% |
| 2023-06-01 | NA | 7.34% |
| 2023-07-01 | NA | 7.41% |
| 2023-08-01 | NA | 7.63% |
| 2023-09-01 | NA | 7.63% |
| 2023-10-01 | NA | 7.72% |
| 2023-11-01 | NA | 7.77% |
| 2023-12-01 | NA | 7.74% |
| 2024-01-01 | NA | 7.31% |
| 2024-02-01 | NA | 7.25% |
Historic Rates
| Date | Fixed Rate | Adjustable Rate |
|---|---|---|
| 2016-01-01 | 5.06% | 3.57% |
| 2016-02-01 | 4.98% | 3.81% |
| 2016-03-01 | 4.99% | 3.78% |
| 2016-04-01 | 5.03% | 3.91% |
| 2016-05-01 | 5.01% | 4.09% |
| 2016-06-01 | 5.00% | 4.14% |
| 2016-07-01 | 5.03% | 4.23% |
| 2016-08-01 | 5.01% | 4.32% |
| 2016-09-01 | 4.87% | 4.56% |
| 2016-10-01 | 4.95% | 4.62% |
| 2016-11-01 | 4.85% | 4.71% |
| 2016-12-01 | 5.02% | 4.72% |
| 2017-01-01 | 5.00% | 4.89% |
| 2017-02-01 | 4.90% | 4.73% |
| 2017-03-01 | 4.89% | 4.57% |
| 2017-04-01 | 5.02% | 4.55% |
| 2017-05-01 | 4.99% | 4.43% |
| 2017-06-01 | 5.01% | 4.39% |
| 2017-07-01 | 5.02% | 4.42% |
| 2017-08-01 | 5.01% | 4.53% |
| 2017-09-01 | 5.02% | 4.50% |
| 2017-10-01 | 5.04% | 4.50% |
| 2017-11-01 | 5.04% | 4.63% |
| 2017-12-01 | 4.90% | 4.66% |
| 2018-01-01 | 4.98% | 4.65% |
| 2018-02-01 | 4.70% | 4.61% |
| 2018-03-01 | 4.93% | 4.70% |
| 2018-04-01 | 4.79% | 4.75% |
| 2018-05-01 | 4.49% | 4.76% |
| 2018-06-01 | 4.83% | 4.85% |
| 2018-07-01 | 4.88% | 4.76% |
| 2018-08-01 | 4.56% | 4.62% |
| 2018-09-01 | 4.66% | 4.82% |
| 2018-10-01 | 4.63% | 4.79% |
| 2018-11-01 | 4.68% | 4.93% |
| 2018-12-01 | 4.21% | 4.95% |
Top Cities in Georgia by Total HECM Loans Originated
| Rank | City | Zip | Total |
|---|---|---|---|
| 1 | DECATUR | 30032 | 408 |
| 2 | ATLANTA | 30316 | 364 |
| 3 | ATLANTA | 30311 | 332 |
| 4 | ATLANTA | 30331 | 296 |
| 5 | ATLANTA | 30310 | 273 |
| 6 | ATLANTA | 30317 | 227 |
| 7 | BLAIRSVILLE | 30512 | 220 |
| 8 | ATLANTA | 30318 | 217 |
| 9 | DECATUR | 30030 | 203 |
| 10 | MARIETTA | 30062 | 198 |
| 11 | WOODSTOCK | 30188 | 196 |
| 12 | DECATUR | 30034 | 182 |
| 13 | RINGGOLD | 30736 | 182 |
| 14 | ATLANTA | 30314 | 180 |
| 15 | GRIFFIN | 30223 | 179 |
| 16 | ROSWELL | 30075 | 174 |
| 17 | ATLANTA | 30315 | 173 |
| 18 | ROSSVILLE | 30741 | 173 |
| 19 | MARIETTA | 30066 | 172 |
| 20 | CANTON | 30114 | 164 |
| 21 | SAVANNAH | 31405 | 159 |
| 22 | GAINESVILLE | 30506 | 159 |
| 23 | SAVANNAH | 31406 | 159 |
| 24 | MARIETTA | 30064 | 157 |
| 25 | LOGANVILLE | 30052 | 154 |
| 26 | CUMMING | 30040 | 152 |
| 27 | SAVANNAH | 31404 | 152 |
| 28 | MARIETTA | 30068 | 150 |
| 29 | JASPER | 30143 | 150 |
| 30 | DOUGLASVILLE | 30135 | 147 |
Housing Counselors
Prior to taking out a reverse mortgage, you are required to speak to a housing counselor. Here is a list of HUD approved counselors operating in GA:
ATLANTA LEGAL AID SOCIETY, INC.
246 SYCAMORE ST, DECATUR GA 30030-3442
(770) 817-7520
http://atlantalegalaid.org
CCCS OF THE SAVANNAH AREA, INC.
515 DENMARK STREET, STATESBORO GA 30458-5287
(912) 691-2227
www.cccssavannah.org
CCCS OF THE SAVANNAH AREA, INC.
501 GLOUCESTER STREET SUITE 202, BRUNSWICK GA 31520-7002
(912) 691-2227
www.cccssavannah.org
CCCS OF THE SAVANNAH AREA, INC.
BRANTLEY BLDG. STE. A, 135 E. MLK BLVD, HINESVILLE GA 31313-3711
(912) 691-2227
cccssavannah.org
CCCS OF THE SAVANNAH AREA, INC.
7505 WATERS AVE., SUITE C-11, SAVANNAH GA 31406-3826
(912) 691-2227
http://www.cccssavannah.org
HANCOCK COMMUNITY DEVELOPMENT CORPORATION
300 HENDERSON EXT, ATHENS GA 30606-3738
(877) 284-4326
http://www.hancockcdc.org
MONEY MANAGEMENT INTERNATIONAL – ATLANTA BRANCH
270 PEACHTREE ST NW, ATLANTA GA 30303-1283
(877) 877-1995
http://www.clearpointccs.org
NID-HCA ATL SOUTHERN CRESCENT
4590 WELCOME ALL RD SW, COLLEGE PARK GA 30349-2540
(404) 763-1553
www.nidonline.org
TOTALLY FREE, INC.
1515 1/2 NEWCASTLE STREET, BRUNSWICK GA 31520-6806
(912) 265-1515
www.totallyfreeinc.org
TOTALLY FREE, INC.
1612 UNION STREET, BRUNSWICK GA 31520-6733
(912) 265-1515
www.totallyfreeinc.org
VETERANS CENTER
8060 WEBB RD, UNIT 741202, RIVERDALE GA 30274-5405
(678) 792-8387
www.vetscenterinc.org
Want to learn more? Click here to get free information about a reverse mortgage!
