Investopedia has meticulously evaluated the prominent reverse mortgage providers, meticulously gathering hundreds of data points from eight leading lenders. This comprehensive analysis, which also incorporated loan-level specifics from tens of thousands of reverse mortgages funded in 2024 by the top 25 originators, aimed to identify the best options for consumers. Key metrics such as average rates, loan-to-value ratios, debt-to-income ratios, and other critical loan details were scrutinized. The objective was to offer an unbiased and thorough review, empowering readers to make informed financial decisions. Finance of America Reverse distinguished itself as the premier choice, excelling in areas like company infrastructure and a wide array of loan features. Following closely were Longbridge Financial, recognized for its exceptional customer experience, Fairway Reverse Mortgage, noted for its competitive rates and suitability for reverse mortgage purchases, and Mutual of Omaha, also praised for its low average rates.
Detailed Review of Leading Reverse Mortgage Providers
In a comprehensive 2024 analysis of reverse mortgage lenders, Finance of America Reverse, headquartered in Tulsa, Oklahoma, secured the top position. This institution garnered the highest overall rating, primarily due to its robust company infrastructure and diverse loan features. In 2024, Finance of America Reverse led the market in reverse mortgage originations, offering FHA-backed Home Equity Conversion Mortgage (HECM) loans to homeowners aged 62 and above, with home values below the 2026 cap of $1,249,125. Their average interest rate stood at 7.65%, with average loan amounts reaching $295,027 and a typical closing time of 30 days. Beyond HECM loans, they provided jumbo loans, options for individuals aged 55 and older, and home equity second mortgages designed to function like reverse mortgages, eliminating monthly payments. Borrowers had the flexibility to choose between fixed and adjustable rates, and various disbursement options, including lump-sum payouts, lines of credit, and term and tenure plans. Notably, 16% of their 2024 originations were lump-sum disbursements, marking the highest percentage among the evaluated lenders. While their online experience rated 3 out of 5, their educational resources received a perfect 5. Customer service is accessible via telephone and email.
Longbridge Financial, based in Paramus, New Jersey, emerged as the leader in customer experience, closely trailing Finance of America Reverse in overall performance. Founded in 2012, Longbridge Financial achieved an impressive customer experience score, supported by its superior online tools and extensive educational resources. In 2024, Longbridge originated over 3,800 reverse mortgages, ranking third among the top lenders. Their average interest rate was a competitive 7.28%, with average loan amounts of $308,113, though closing times averaged 45 days. They offer a comprehensive suite of reverse mortgage products, including standard HECM loans, jumbo loans, and reverse mortgages for purchase. Additionally, they provide a proprietary reverse mortgage tailored for homeowners aged 55 and above. Longbridge distinguished itself by earning perfect scores of 5 out of 5 for both online experience and educational resources, a unique achievement in this study. They offer customer support through telephone, email, and online chat, and their combined consumer review rating stood at 4.8 out of 5.
Fairway Reverse Mortgage, a division of Fairway Independent Mortgage and headquartered in Madison, Wisconsin (founded 1996), was recognized for both reverse mortgage purchases and competitive rates. This lender, unique among traditional mortgage providers on the list, funded 1,040 reverse mortgages in 2024. Their average interest rate was an impressive 7.03%, tying for the lowest among high-performing lenders. The average loan amount was $132,298, with a maximum of $635,000, and an exceptionally fast average closing time of 17 days. Fairway offers HECM, jumbo, and purchase reverse mortgages, along with second-lien reverse mortgages that allow homeowners to defer interest and principal payments until the home is sold or vacated. While their online experience and educational resources each received a 3 out of 5, Fairway Independent Mortgage earned high marks in J.D. Power’s 2025 Mortgage Origination Satisfaction Study. Customer service is available via telephone and email, and their combined consumer review rating was 4.9 out of 5.
Mutual of Omaha Mortgage, established in 1909 and based in Omaha, Nebraska, also stood out for its low average rates. In 2024, Mutual of Omaha originated 6,020 reverse mortgages, second only to Finance of America Reverse in volume. A significant 98% of these were FHA-backed HECM loans. Their average interest rate matched Fairway’s at 7.03%, with average loan amounts of $226,558, and a closing time of 53 days. Loan sizes ranged from $15,000 to $2,075,000. Beyond HECM, they offer jumbo loans, reverse mortgages for purchase, and refinancing options. Their online experience was rated 4 out of 5, while educational resources received a 3 out of 5. Customer service is primarily through an online email form, with the application process initiated by requesting a reverse mortgage guide online.
This detailed comparison reveals distinct strengths among leading reverse mortgage providers. While Finance of America Reverse excels in overall infrastructure and loan variety, Longbridge Financial leads in fostering a positive customer journey. Fairway Reverse Mortgage offers attractive rates and speedy closings, especially for purchase transactions, and Mutual of Omaha provides competitive rates with a strong focus on HECM loans. These insights are invaluable for individuals contemplating a reverse mortgage, highlighting the importance of aligning a lender's strengths with personal financial goals and preferences.
