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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
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