Page 16 - Your Guide to Retirement Booklet

We Make Your Best Interests a Priority

A number of consumer safeguards have been established
to protect reverse mortgage borrowers. These protections HUD Fee Limitations
ensure lenders like American Advisors Group are doing their
jobs correctly, and that you and your family have a thorough HECM loan origination fees
understanding of how a reverse mortgage loan works. The are regulated by the U.S.
following consumer safeguards were instituted for your Department of Housing and
protection. Urban Development. Other
reverse mortgage costs may
vary among creditors and
Non-Borrowing Spouses loan types.

Loan amounts are available to borrowers with a non-borrowing
spouse under the age of 62. New rules also allow the eligible spouses Non-Recourse Loan
of borrowers who pass away to stay in the home without foreclosure
as long as the surviving spouse continues to pay property taxes, HECMs are non-recourse loans.
homeowners insurance, and home maintenance, and otherwise Neither you nor your heirs
complies with the loan terms. Knowing that the loss of a loved one is will ever owe more than the
already hard enough, this feature was implemented to ensure spouses loan balance or the value
have the security of knowing they’re safe in their home.
of the property at maturity,
whichever is less; and your heir
Financial Assessment is not obligated to use assets
other than the home to repay
HUD now requires a more thorough evaluation of borrowers’ abilities the debt.
to meet the financial obligations of their reverse mortgage loan. This
ensures that a reverse mortgage can be a sustainable, long-term No Pre-Payment Penalty
solution for borrowers.
Although the loan is not due and
Counseling payable until the last borrower or
eligible non-borrowing spouse
All reverse mortgage applicants undergo independent, third-party, leaves the home or does not
HUD-approved counseling. This ensures that borrowers understand comply with the loan terms, you
the financial implications associated with their reverse mortgage, may choose to repay the loan at
what their obligations are and what other alternatives may be any time without incurring
available to them. AAG strongly believes in third-party counseling additional costs.
because it helps borrowers feel comfortable with the process and
understand their options.
Call AAG today.

Reverse Mortgage Retirement Planner 9