Home Equity Conversion Mortgage

Terry Cronin of The Kent Group1S443 Summit Ave., Suite #301

C: 630-207-1524P: 630-396-7800F: 630-396-7808

(An FHA sponsored home loan product insured by HUD )

Borrowers should consult financial advisor and appropriate government agencies for any effect on taxes or government benefits.Make sure your clients understand the features associated with the loan program they choose and the effect of an adjustable rate to their overall loan cost. Advisor and/or broker/correspondents are independent entities and do not form legal partnership or agency relationships with Financial Freedom. Information is intended for Mortgage Professionals only, and not intended for distribution to consumers

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IMPORTANT NOTICEPLEASE READ BEFORE PROCEEDING

TO THE NEXT PAGE

The accompanying marketing material hasbeen copyrighted by Financial Freedom

Acquisition LLC, a Subsidiary of OneWest Bank, FSB.You have been

granted a limited license to utilize thismaterial in its existing format. You are not

permitted to make any changes to thismaterial without the prior written consent of

Financial Freedom. The use of this material issubject to your license agreement and

applicable copyright laws.

3What is a Reverse Mortgage?

• A retirement tool that allows senior homeowners to convert home equity into tax-free cashWithout– Leaving their homes– Having income to qualify– Being required to make monthly mortgage

payments– Having to repay the loan until last borrower

permanently moves out• Who can get a Reverse Mortgage

– Senior homeowner, at least 62 years old– With enough equity in his/her home to qualify

4How Does This Differ from a Traditional Mortgage Loan?

• Does NOT require repayment until- Last borrower moves out- Borrower (s) sells the property- Last borrower passes away

• Borrower may qualify more easily compared to a traditional loan

5Features and Benefits

• Homeowner retains title to the home, not the lender

• Seniors’ savings are preserved and their cash flow is increased to use for the cost of living and to enjoy life

• Reverse mortgage proceeds are tax free• Borrowers are not required to make monthly

mortgage payments• Virtually no income or credit qualifications are

required• Senior enjoys financial security and

independence

6Qualifications

• Senior homeowner(s) 62 years or older• Home must be a 1-4 family residence• Most Condominiums and PUDs are eligible• Manufactured homes meeting HUD guidelines• Primary residence• Mandatory HUD approved counseling

7Borrower’s Responsibility

• Keep property taxes current• Maintain hazard insurance• Maintain property in reasonable living condition• Live in the home as primary residence

8How Safe is the HECM Reverse Mortgage?

• FHA administers the HECM program and guarantees that borrowers receive their requested loan advance if the lender defaults

• The borrower(s) will never owe more than the fair market value of the home upon loan maturity.

9How is the Loan Amount Calculated?

• Appraised home value or the national lending limit (whichever is less)

• Age of the youngest borrower• Current interest rate

10Interest Rates

• HECM Variable - Monthly and annually adjustable options available

based on the One Year CMT index plus a margin and monthly adjustable options based on the One Month LIBOR index plus a margin• HECM Fixed

- Fixed rate for the life of the loan - Competitive rates offered for loans with 100%

upfront draw - Single alternate rate for loans other than 100%

upfront draw.

11Flexible Payment Options

• Reverse mortgage proceeds can be received: - Monthly - Lump Sum - Line of Credit - OR a combination

• You can change payment plan at any time during the life of the loan. (a nominal fee will be charged)

12Come On In…The Process is Easy

1. Contact Terry Cronin at 630-207-15242. Discuss and review benefit illustration3. Set up an appointment with a HUD approved

housing counselor4. Complete application5. Order FHA appraisal

13Completing the Process

6. If loan is approved, all outstanding conditions must be cleared

7. Draw loan documents8. Three day right of rescission9. Loan funds, documents are recorded and

proceeds, if any, are disbursed as instructed

14You’ve Paid for Your Home…Now, Let your Home Pay for You!

Questions? Comments?