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Example An eligible couple lives in a home valued at $450,000 and owes
$100,000 on their mortgage. They take out a HECM loan and pay off their
current mortgage which eliminates their monthly payment and opens a
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$75,194 line of credit. This line of credit grows over the next 10 years to be
worth $130,947. Since they eliminated their mortgage payment, they may not
need to draw down their 401(k) to supplement monthly expenses.

This example is based on the youngest borrower age 65, home value of $450,000, IMIP of $9,000, origination
fee of $6,000 and other settlement costs of $3,306. HECM ARM as of 08/02/2018.

How Your Client Can Benefit

1. Planning for Retirement A HECM loan 3. An Alternative to a Home Equity 5. Pay for In-Home Care The homeowner
can be a wonderful tool for retirement Line of Credit (HELOC) For homeowners may need access to funds to supplement
planning. Loan proceeds can be used in seeking to fund home improvements or their health insurance. According to The
a variety of strategic ways to supplement similar expenses, a HECM, like a HELOC, Joint Commission, evidence suggests that
income sources, and event to delay can provide a line of credit. But while a home care is a key step toward achieving
drawing from social security or portfolios HELOC comes with additional monthly optimal health outcomes for many
during down markets. mortgage payments, a HECM eliminates patients. 4
monthly mortgage payments .
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2. Limited Financial Resources and
Options The homeowner can use a HECM 4. Purchasing a Home A HECM can be
loan to eliminate monthly mortgage used to buy a home, too. A HECM for
payments that are hard to manage on a Purchase loan can be an ideal solution
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limited income . for seniors who are concerned about
qualifying for a traditional mortgage on a
fixed income.

1 Consult your tax advisor.
2 Borrower must continue to pay property taxes, homeowner’s insurance and home maintenance costs.
3 This line of credit also includes a compounding feature so that available credit increases each period on the prior period’s available credit balance.
4 “Home-The Best place for Health Care”- The Joint Commission.2011. Web.22 Jan 2016. http://www.johnahartford.org/images/uploads/ resources/Home_Care_position_paper_4_5_111.pdf

People pictured are not actual borrowers or AAG employees. NMLS# 9392 (www.nmlsconsumeraccess.org). American Advisors Group (AAG) is headquartered at 3800 W. Chapman Ave., 3rd & 7th Floors, Orange CA,
92868. AAG conducts business in the following states: AK (Alaska Mortgage Broker/Lender License No. AK9392), AL, AR, AZ (MB_0911141), CA (CA Loans made or arranged pursuant to a California Finance Lenders
Law license (603F324) and Licensed by the Department of Business Oversight under the California Residential Mortgage Lending Act (4131144)), CO (Regulated by the Division of Real Estate; to check the license
status of your mortgage loan originator, visit http://www.dora.state.co.us/real-estate/index.htm), CT, DC (District of Columbia Mortgage Dual Authority License No. MLB9392), DE, FL, GA (residential Mortgage
Licensee #22849), HI, IA, ID, IL (Illinois Residential Mortgage Licensee; Illinois Commissioner of Banks can be reached at 100 West Randolph, 9th Floor, Chicago, Illinois 60601, (312)814-4500), IN, KS (Kansas Licensed
Mortgage Company MC. 0025024), KY, LA, MD, ME (SLM11356), MI, MN, MO (4824 NW Gateway Ave, Suite 201, Riverside, MO 64168), MS (Licensed by the Mississippi Department of Banking and Consumer Finance),
MT, NC, ND, NE, NH (Licensed by the New Hampshire banking department), NJ (Licensed by the N.J. Department of Banking and Insurance), NM, NV, NY (Licensed Mortgage Banker-NYS Department of Financial
Services; American Advisors Group operates as American Advisors Group, Inc. in New York.), OH (MBMB.850159.000), OK, OR (ML-4623), PA (Licensed by the Pennsylvania Department of Banking 28356), RI (Rhode
Island Licensed Lender), SD, SC, TN, TX (Mortgage Banker Registration, 13785 Research Blvd, Ste. 125, Austin, TX 78750), UT, VA (Licensed by the Virginia State Corporation Commission MC – 5134), VT (Vermont Lender
License No. 6384), WA (Consumer Loan # CL-9392),WV, WI, WY (WY-DBA AAG Reverse Mortgage Lender/Broker License No. 2331). AAG is an equal housing lender. These materials are not from HUD or FHA and were
not approved by HUD or a government agency. A reverse mortgage increases the principal mortgage loan amount and decreases home equity (it is a negative amortization loan).
When the loan is due and payable, some or all of the equity in the property no longer belongs to borrowers, who may need to sell the home or otherwise repay the loan with interest from other proceeds. AAG
charges an origination fee, mortgage insurance premium, closing costs and servicing fees (added to the balance of the loan). The balance of the loan grows over time and AAG charges interest on the balance.
Interest is not tax-deductible until the loan is partially or fully repaid. Borrowers are responsible for paying property taxes, homeowner’s insurance, maintenance, and related taxes (which may be substantial).
We do not establish an escrow account for disbursements of these payments. A set-aside account can be set up to pay taxes and insurance and may be required in some cases. Borrowers must occupy home
as their primary residence and pay for ongoing maintenance; otherwise the loan becomes due and payable. The loan also becomes due and payable (and the property may be subject to a tax lien, other
encumbrance, or foreclosure) when the last borrower, or eligible non-borrowing surviving spouse, dies, sells the home, permanently moves out, defaults on taxes, insurance payments, or maintenance, or
does not otherwise comply with the loan terms. V2017.08.23_OR