REVERSE MORTGAGE GUIDE

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1 REVERSE MORTGAGE GUIDE Retire comfortably with a Reverse Mortgage CRAIG MINTON - AMERICAN NATIONWIDE MORTGAGE

2 Introduction Hello my name is Craig Minton, Regional Manager and Reverse Mortgage Specialist with American Nationwide Mortgage. I have prepared this Reverse Mortgage Guide with the goal of providing you answers to the most commonly asked questions about reverse mortgages. I know what your home means to you and your family. I truly understand the importance of protecting everything it represents. That s why I take great pride in ensuring every client s situation is treated with absolute respect and dignity. I would encourage you to learn more about the reverse mortgage program and call me so I can address your specific questions or concerns. I meet all my clients face to face and in fact, the majority of my consultations take place at the clients home. Yes, I make house calls. If and when you are ready to move forward I will be there to guide you through every step of the process until your loan is closed. Best regards Craig Minton

3 What is a Reverse Mortgage? It is a government loan program, insured by the Federal Housing Administration (FHA) that allows homeowners, 62 years of age or older, to borrow a portion of their equity without having to give up ownership or title. Unlike other loans, you are not required to make a mortgage payment. Are you living the American Dream? Most Americans dream of retiring and spending their golden years enjoying more time with family and friends, taking vacations without worrying about returning to work, and quite simply enjoying life again after decades of hard work. However, many are faced with the dilemma of how much money they can afford to take from their retirement savings before they run out. If this sounds like you, a reverse mortgage is something you may want to consider. How do I qualify? You must be at least 62 years of age The property must be your primary residence You must be on the property deed. Effective April 27, 2015 income and credit requirements will apply You are required to continue paying your property taxes and home insurance

4 Are there any consumer protections? There are several safety nets in place for your benefit: Third party counseling is required and performed by HUD- approved counselor This is a non-recourse loan which means the borrower can never owe more on the loan than what the house is worth at the time the loan is paid back. HUD regulates the maximum origination fee the lenders can charge you There are no prepayment penalties assessed should you decide to pay loan off early What if I currently have a mortgage against my home? The reverse mortgage must be in first lien position, so any existing mortgage must be paid off with the reverse mortgage funds. Any additional amount you qualify for can be used at your discretion for any purpose whatsoever. Will my government benefits be affected? The general answer to this question is no, a reverse mortgage will not affect government benefits such as Medicare or Social Security. That being said, if you are on Medicaid or SSI, you should consult a federal benefits administrator to ensure your benefits will not be impacted.

5 How can you receive the proceeds from a Reverse Mortgage? Lump Sum a lump sum of cash at closing Tenure equal monthly payments for as long as you live in the home. Term equal monthly payments for a fixed number of years Line Of Credit draw any amount at any time until line of credit is exhausted Any combination of those listed above Will my children lose their inheritance? Once the loan is repaid, any remaining equity goes to you or your heirs. How much money will I receive? The amount of loan you qualify for depends on 3 factors: Your age or the youngest homeowner s age Your home value Current Interest Rates When is the loan repaid? A reverse mortgage is repaid when the last remaining homeowner leaves the home. The loan balance, including any fees and accrued interest, must be repaid. Any remaining equity in the home belongs to you or your heirs.

6 Will I lose my home? You will continue to retain title and ownership to your home during the life of the loan and can choose to sell your home at any time. As long as you live in your home as your primary residence, continue to pay your home owners insurance and real estate tax as well as comply with the loan agreement, your loan cannot be called due. Why choose American Nationwide Mortgage Company? Founded in 1996 with branches in 30 states nationwide. We are a HUD approved FHA Reverse Mortgage lender We guarantee no pressure and no obligation consultations No upfront out of pocket costs I personally make house calls as well as provide you one on one attention from start to finish, including attending your closing. I welcome the opportunity to provide you a free no obligation consultation today. I look forward to hearing from you. Craig L. Minton Regional Manager Reverse Mortgage Specialist American Nationwide Mortgage Direct Toll Free NMLS# Revision 01/15

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