Page 8 - AAG119_HECM for Purchase Booklet for Builders

Let’s Review Your
Buyer’s Options #1 Pay Cash in Full

3 No monthly mortgage
payment
3 Depletes savings
(“house rich, cash
poor”)
3Limited buying power

#2 AAG HECM for
Purchase Loan

Pay APPROXIMATELY HALF CASH

with a HECM for Purchase (Home
Equity Conversion Mortgage)

No monthly mortgage payment*

MORE CASH IN SAVINGS
RETIREMENT / ASSET LIQUIDITY

DOUBLES BUYING POWER

Compared to plan #1

#3 Traditional
30-year Fixed Loan
3 Mandatory payments for
30 years
3 More cash in savings, but
less money monthly due to
mortgage payments
*Borrower(s) must continue 3 Buying power dependent
to pay property taxes and on income
homeowner’s insurance,
maintain the home, and
otherwise comply with the
loan terms.
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