About Open Mortgage

Open Mortgage Synopsis 

Review Summary:  

Open Mortgage is a mortgage lender that offers reverse mortgages and HECM for purchase options in 45 states and the District of Columbia. They do not offer jumbo loans. Open Mortgage also offers traditional mortgage products and refinancing options. They also have an A+ rating from the Better Business Bureau (BBB). Read more below to find out if Open Mortgage is right for you. 

Recommended for: 

Open Mortgage is a great option if you live in one of the states where it is licensed to originate loans. (You will want to make sure that your state is included on its list before moving forward.) While Open offers reverse mortgages and HECM for purchase options, it does not offer jumbo loans. Jumbo loans are for those who are able to borrow more than the FHA lending limit, which is currently just over a million dollars. If you believe your home is worth more than the current lending limit, you will want to find a lender who will better meet your needs, such as Fairway Independent Mortgage or Mutual of Omaha Mortgage.  

What is a Reverse Mortgage? 

The most common type of reverse mortgage is the Home Equity Conversion Mortgage (HECM), which is also referred to as HECM reverse mortgages or HECM loans. It is a financial tool available to seniors who are at least 62 years of age. It allows them to cash-in on the equity in their homes without having to sell their home. A reverse mortgage pays off the current traditional mortgage, if there is one. This is how a reverse mortgage eliminates monthly mortgage payments. Reverse mortgage customers then have the option of receiving the loan proceeds as monthly payments, a lump sum, and/or a line of credit. Reverse Mortgage can also be used to purchase a new home, which is known as a HECM for Purchase. Those who obtain a reverse mortgage are still required to stay current on property taxes, homeowner’s insurance, and any necessary maintenance costs. Read more about Reverse Mortgages here. 

Open Mortgage Ratings

Open Mortgage Full Review 

Overview 

Open Mortgage brings 21 years of experience to the mortgage industry. Open Mortgage is headquartered in Austin, Texas, but it offers loans in 46 states and the District of Columbia. It is a full-service home lender in addition to offering reverse mortgages. The reverse mortgage products it offers are traditional reverse mortgages and HECM for purchase. However, it does not offer jumbo reverse mortgages.  

Reverse Mortgage Loan Options  

Open Mortgage offers the following reverse mortgage products:  

• Reverse Mortgage Loans. These are loans that are backed by the federal government and allow homeowners to borrow up to $1,149,825, which is the current lending limit set by the Federal Housing Administration (FHA). Reverse mortgage loans allow homeowners to convert their home equity into cash they can receive as monthly payments, a lump sum, or a line of credit without having to make monthly mortgage payments. A reverse mortgage loan only is available to homeowners who are 62 years old or older and can only be used for homes that are the primary residence of the borrowers. 
• HECM for Purchase. A HECM for purchase is a reverse mortgage that provides a way for senior homeowners to use a reverse mortgage to purchase a new home. This may be a good option for those who want to move or relocate to a home that better fits their needs in retirement.  

Open Mortgage also offers conventional mortgage loans and refinancing options.  

Open Mortgage Application Process 

While the reverse mortgage process can vary depending on the lender and each individual situation, here is what Open Mortgage says you can expect: 

• Research. The first step that Open Mortgage recommends is to spend some time researching reverse mortgages, including the pros and cons, so that you can make an informed decision.   
• Counseling. Before pursuing a reverse mortgage, all reverse mortgage applicants must first complete a counseling session with a third-party counselor certified by the U.S. Housing and Urban Development (HUD). This is not done through Open Mortgage, but your loan officer will be able to provide you with a list of counselors you can choose from.  
• Apply. Once the counseling session is completed, you will then be able to submit your reverse mortgage application.  
• Submit Required Items. As part of the application process, there will be several documents and other information you will need to submit. Your loan officer will let you know what items are required.  

• Appraisal. Your home will need an appraisal to determine the current market value, which will also play a deciding role in how much you will be able to borrow.  
• Processing and Underwriting. Your application and all documents submitted will be reviewed by processing before they are sent to the underwriter. The underwriter reviews everything submitted and approves the loan.  
• Closing. Once the loan has been approved, the underwriter will set a closing date, when all documents must be signed. 

Open Mortgage Company Information  

Years in Business (5 of 5 Stars) 

Open Mortgage started in 2003 and has been in business for 21 years. We assign high scores to reverse mortgage lenders who have been in business for 20+ years. This is because we believe it gives customers confidence that their lender demonstrates longevity and will remain available when they require assistance. Additionally, it demonstrates the lender’s ability to endure market fluctuations. 

BBB Ratings (5 of 5 Stars) 

Open Mortgage has an A+ Rating from the Better Business Bureau (BBB), which is the highest score a company can receive from the business evaluation company.  

We incorporate Better Business Bureau (BBB) accreditation ratings into our company evaluations because of the value they provide. The BBB’s stringent application process and ongoing monitoring make it a highly respected organization in establishing a credibility benchmark that is unmatched by any other business rating service. As a result, buyers seeking reassurance about the companies they engage with trust the BBB as a reliable resource. 

Customer Service Availability (3 of 5 Stars) 

Open Mortgage customer service is available Monday through Friday from 8:00 AM to 6 PM CST. Open Mortgage can also be reached through email and a form it has on its website. The top reverse mortgage companies have 24/7 availability to serve their customers, or they have hours on the weekend when they can be reached by phone.  

State Licensing (5 of 5 Stars) 

Open Mortgage is licensed to originate HECM reverse mortgage loans in 46 states and the District of Columbia. Learn more about its state licensing information by going here.  

Mobile App (1 of 5 Stars) 

Open Mortgage does not have an app to serve its reverse mortgage customers or its forward mortgage customers. We think an app is an important tool to offer customers because it’s an additional way that companies can communicate with their customers. Mobile apps also make it easier for customers to upload documents during the application process and keep tabs on their accounts once the loan is completed.  

If you’ve received a reverse mortgage from Fairway, we would love to hear about it! Please leave a review below.

Reviews last updated: 10/14/24. (Reviews are typically updated monthly.)

Rating last updated: 8/5/24. (Ratings are typically updated once per quarter.)

This information is intended to be general and educational in nature and should not be construed as financial advice. Consult your financial advisor before implementing financial strategies for your retirement.