Page 2 - 2017_08_AAG026_Info for FA and CPA Trifold_NFST_B2B_National_29985632

Information for Financial Advisors and CPAs Monthly Payments

Learn more about how reverse mortgage loans can offer an intelligent, Borrowers make no monthly mortgage
2
tax-efficient solution for homeowners 62 and over. payments , unlike traditional mortgages, with
a reverse mortgage loan, the lender pays the
borrower. Borrower must continue to pay
property taxes and insurance.

What is a HECM? Loan Amount
A Home Equity Conversion Mortgage (HECM), The amount of the loan depends on: age of the Advantages of a Home Equity Loan
also known as a reverse mortgage loan, enables youngest borrower or eligible non-borrowing Unlike a home equity loan, a reverse mortgage
homeowners 62 and older to access their spouse, current interest rates, appraised value of does not require monthly mortgage payments .
2
home’s equity as tax free loan proceeds while the home and amount of equity in the home.
1
eliminating their monthly mortgage payments. FEATURE REVERSE HELOC
Borrower must continue to pay property taxes Monthly Mortgage Payment NO YES
and insurance. Receiving the Money
Minimum FICO Score* NO YES
Borrowers can receive the cash from a
Maintaining Ownership reverse mortgage in several ways: Guaranteed Growth Rate** YES NO
Borrowers retain ownership of their home A single lump sum *Clients must be able to prove they are willing and able to pay their
but are subject to a lien granted to the lender. p property taxes, homeowner’s insurance, and conduct general home
They are responsible for paying property p Monthly payments maintenance.**This line of credit also includes a compounding
feature so that available credit increases each period on the prior
taxes, homeowner’s insurance, and the home p Line of credit period’s available credit balance.
maintenance, and otherwise complying with the
loan terms. The borrowers may continue to live in p A combination of
the home and the loan doesn’t have to be repaid the above Use of the Money
until they leave, sell the home, or fail to meet loan Common uses of the proceeds include paying
obligations. for monthly living expenses, prescription drug
or medical bills, home repair and improvement,
Tom Selleck retirement security, and more.
American Advisors Group
Paid Spokesperson
Government Benefits
Example Funds from a reverse mortgage generally do
not affect regular Social Security or Medicare
benefits, however, need-based benefits such as
An eligible couple lives in a home valued at $450,000 and owes $100,000 on their Medicaid and Supplemental Security Income
mortgage. They take out a reverse mortgage loan and pay off their current mortgage which (SSI), could be affected.
eliminates their monthly payment and opens a $131,094 line of credit. This line of credit
grows over the next 10 years to be worth $243,306. Since they eliminated their mortgage Call today and
payment, there is no need to draw down their 401K to supplement monthly expenses. find out if you qualify!

This example is based on the youngest borrower age 65, home purchase price of $450,000, IMIP of $2,250, origination fee of $6,000 and other settlement 555-555-5555
costs of $4,555. HECM ARM as of 5/26/2017.