Page 1 - AAG047 Rethink Reverse

Rethink Reverse

Increase Portfolio Longevity with a What is a HECM?
Reverse Mortgage Loan A HECM loan is designed for homeowners 62 and over
American Advisors Group (AAG) shares your mission of to unlock a portion of the equity in their home by
putting the financial security of your customers first and turning it into tax-free* cash with no monthly mortgage
can appreciate the hard work and attention to detail payments**.
associated with balancing portfolio construction and *Consult your tax advisor. **Borrower must continue to
risk management for long-term success. Considering the pay for property taxes, homeowner’s insurance, and home
use of home equity in retirement planning is essential in maintenance costs.
balancing short-term concerns with long-term goals.
How could a HECM help your client with their retirement
Government-insured Home Equity Conversion Mortgages portfolio?
(HECM) loans, commonly known as reverse mortgages, A HECM loan provides a potentially inexpensive, easy-to-
can be used as a buffer asset to the borrower’s spending qualify, tax-free*, liquid cash reserve for various uses.
strategy or as an innovative way to diversify wealth.
HECM loans are now safer than ever with specific How much does a HECM cost?
measures required by the Federal Housing Administration Much like traditional mortgages, there are costs associated
(FHA) to protect borrowers. The new government with originating the loan. Borrowers are charged an
guidelines make the HECM loan an incredible financial origination fee, a mortgage insurance premium (MIP),
planning tool for investors who want to maximize an appraisal fee as well as standard closing costs. The
portfolio longevity. great news is that some of these fees are capped, and/or
financed with the loan proceeds.

Learn More About the Advantages of HECM Loans

For industry professionals only – not intended for distribution to the general public. AAG047