Reverse Mortgages

• Do you want to stay in your home for many years?
• Have you accumulated substantial equity in your home?
• Are you (or your co-borrower) at least 62 years of age?

If you answered “yes” to any of these questions, a reverse mortgage (also known as a Home Equity Conversion Mortgage or HECM) might be right for you! A reverse mortgage can be a smart financial option for seniors who want to gain access to the equity in their home.

Reverse Mortgage Features

• Fixed and variable loan rates available.
• Most closing costs and fees can be financed as part of the loan, resulting in little or no up front fees¹
• Receive your funds in a lump sum², a regular monthly payment, a credit line, or a combination of these options
• Eliminates existing monthly mortgage payments³
• Allows you to stay in your home and maintain the title³
• Your heirs inherit any remaining equity after paying off the HECM loan
• Federal Housing Administration (FHA) insured HECM Loan Program⁴
• Loan proceeds are not taxed as income or otherwise (though you must continue to pay required property taxes)⁵

How a Conventional Fixed-Rate Mortgage Works

• Amount available is based on the age of the youngest borrower, current interest rates, existing
  mortgage amount, and the lesser of the appraised value of your home, or sale price up to the maximum lending limit.
• The funds available to you may be restricted for the first 12 months after loan closing, due to
  HECM requirements. You may need to set aside additional funds from loan proceeds to pay for
  taxes and insurance. Consult your advisor for detailed program terms.
• Your actual payment will vary based on your financial situation and the current interest rates when you apply.
• Property must be a single family residence, an owner occupied 2-4 unit home, a condominium
  approved by the Department of Housing and Urban Development (HUD), or a manufactured
  home that meets FHA guidelines
• Must meet financial assessment requirements as established by HUD

1 Except for HUD required counseling.

2 Only available on fixed-rate loans

3 Your current mortgage, if any, must be paid off using the proceeds from your HECM loan. You must still live in the home as your primary residence, continue to pay required property taxes, homeowners insurance, and maintain the home according to FHA requirements. Failure to meet these requirements can trigger a loan default that may result in foreclosure.

4 As required by the Federal Housing Administration (FHA), you will be charged an up-front mortgage insurance premium (MIP) at closing and, over the life of the loan, you will be charged an annual MIP based on the loan balance.

5 Generally, money received is not considered income and should be tax free, though you must continue to pay required property taxes. Consult your financial advisor and appropriate government agencies for any effect on taxes or government benefits.