Page 5 - AAG126_HECM for Purchase Booklet for Real Estate Professionals

Let’s Review Your Buyer’s Options

#3 Traditional
30-year Fixed Loan
#1 Pay Cash in Full 3 Mandatory payments for
30 years
3 No monthly mortgage #2 AAG HECM for
payment 3 More cash in savings, but
3 Depletes savings Purchase Loan less money monthly due to
mortgage payments
(“house rich, cash
poor”) Pay APPROXIMATELY HALF 3 Buying power dependent
3Limited buying power CASH down payment with a on income
HECM for Purchase

No monthly mortgage payment*

MORE CASH IN SAVINGS *Borrower(s) must continue to pay
property taxes and homeowners
RETIREMENT / ASSET LIQUIDITY insurance, maintain the home, and
otherwise comply with the loan terms.
INCREASES BUYING POWER

Compared to plan #1

#2 AAG HECM for Purchase Loan ⁹This example is based on the youngest borrower
age 62, APR of 5.067%, home purchase price
of $500,000, IMIP of $10,000, origination fee of
Sales Price $200,000 $300,000 $500,000 $700,000 $6,000, and other closing costs of $2,338. ¹
⁰This example is based on the youngest borrower
age 65, APR of 5.112%, home purchase price
Age Estimated Cash to Close* of $500,000, IMIP of $10,000, origination fee of
$6,000, and other closing costs of $2,338.
62 $117,938 1 $174,738 5 $287,338 9 $398,938 13 ¹¹This example is based on the youngest borrower
age 70, APR of 5.164%, home purchase price
of $500,000, IMIP of $10,000, origination fee of
65 $113,938 2 $168,738 6 $277,338 10 $384,938 14 $6,000, and other closing costs of $2,338.
¹²This example is based on the youngest borrower
70 $107,338 3 $158,838 7 $260,838 11 $361,838 15 age 75, APR of 5.257%, home purchase price
of $500,000, IMIP of $10,000, origination fee of
$6,000, and other closing costs of $2,338.
75 $102,338 4 $151,338 8 $248,338 12 $344,338 16 ¹³This example is based on the youngest borrower
age 62, APR of 5.019%, home purchase price
*Closing costs included of $700,000, IMIP of $14,000, origination fee of
$6,000, and other closing costs of $2,338.
¹⁴This example is based on the youngest borrower
¹This example is based on the youngest borrower age ⁵This example is based on the youngest borrower age age 65, APR of 5.059%, home purchase price
62, Annual Percentage Rate (APR) of 5.206%, home 62, APR of 5.141%, home purchase price of $300,000, of $700,000, IMIP of $14,000, origination fee of
purchase price of $200,000, IMIP of $4,000, origination IMIP of $6,000, origination fee of $5,000, and other $6,000, and other closing costs of $2,338.
fee of $4,000, and other closing costs of $2,338. closing costs of $2,338.
²This example is based on the youngest borrower age ⁶This example is based on the youngest borrower age ¹⁵This example is based on the youngest borrower
age 70, APR of 5.104%, home purchase price
65, APR of 5.267%, home purchase price of $200,000, 65, APR of 5.195%, home purchase price of $300,000, of $700,000, IMIP of $14,000, origination fee of
IMIP of $4,000, origination fee of $4,000, and other IMIP of $6,000, origination fee of $5,000, and other $6,000, and other closing costs of $2,338.
closing costs of $2,338. closing costs of $2,338.
¹⁶This example is based on the youngest borrower
³This example is based on the youngest borrower age ⁷This example is based on the youngest borrower age age 75, APR of 5.185%, home purchase price
70, APR of 5.337%, home purchase price of $200,000, 70, APR of 5.257%, home purchase price of $300,000, of $700,000, IMIP of $14,000, origination fee of
IMIP of $4,000, origination fee of $4,000, and other IMIP of $6,000, origination fee of $5,000, and other $6,000, and other closing costs of $2,338.
closing costs of $2,338. closing costs of $2,338.
⁴This example is based on the youngest borrower age ⁸This example is based on the youngest borrower age All examples are based on Fixed HECM rates
effective as of March 2021.
75, APR of 5.462%, home purchase price of $200,000, 75, APR of 5.367%, home purchase price of $300,000,
IMIP of $4,000, origination fee of $4,000, and other IMIP of $6,000, origination fee of $5,000, and other
closing costs of $2,338. closing costs of $2,338.