The Facts about Reverse Mortgages

The Facts about Reverse Mortgages

Our Mission We know what your home means to you and your family-and we understand the importance of protecting what it represents. That s why Bayshore Reverse Mortgage takes great pride in insuring every clients situation is treated with absolute respect and dignity. We work with our clients, their families, and trusted advisors to find out their goals and customize a plan to achieve them. Our passion is for educating and helping seniors understand the power of these products when suitable. We are committed to providing a truly refreshing and unique experience with the utmost respect and professionalism. We are extremely proud of the special bonds and relationships we have made with our clients and their families over the years. It s great to hear their personal stories on how the reverse mortgage benefited them and in some cases changed their lives and perspective about the future. It is an incredible feeling to know that we were able to play a small role in making their golden years more enjoyable. Steven Sless NMLS # 298581 Ian Sandler NMLS # 109372 Bayshore Reverse Mortgage 8601 LaSalle Rd Suite 102 Towson, MD 21286 (443) 901-7649 (443) 901-7680 ssless@bayshorereverse.com isandler@bayshorereverse.com

A reverse mortgage... Will it help me? Is it a good fit for my needs? Will I own my home? Do I qualify? Am I protected? These may be some of the thoughts going through your mind regarding reverse mortgages. Read on to get the facts about a reverse mortgage loan and to learn if it could be an important financial tool for you. 1

What is a Reverse Mortgage? A Home Equity Conversion Mortgage (HECM), also known as a reverse mortgage, is a Federal Housing Administration (FHA) insured loan that enables you to access a portion of your home s equity to obtain tax-free 1 funds without having to make monthly mortgage payments. 2 How Can I Use the Funds? If you are 62 years of age or older and have sufficient home equity, you may be able to get the cash you need to: Pay off your existing mortgage 3 Continue to live in your home and maintain the title Pay off medical bills, vehicle loans or other debts Improve your monthly cash flow Fund necessary home repairs or renovations Build a safety net for unplanned expenses Did you know? Over 808,000 seniors have taken out HECM loans as of 2013. 4 Nine out of 10 surveyed believe doing so has positively impacted their lives. 5 1 Consult your financial advisor and appropriate government agencies for any effect on taxes or government benefits. 2 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. 3 Your current mortgage, if any, must be paid off using the proceeds from your HECM loan. 4 National Reverse Mortgage Lenders Association (NRMLA)-Industry Statistics taken from the Department of Housing and Urban Development s (HUD) data for FY 1990 through March 2013, https://www.nrmlaonline.org/rms/statistics/default.aspx?article_id=601 5 Redfoot, Donald L., Scholen, Ken and Brown, S.K. Reverse Mortgages: Niche Product or Mainstream Solution? AARP (2007) 2 443-901-7649

Benefits With a HECM loan: Your existing monthly mortgage payment is eliminated You stay in your home and maintain the title Loan proceeds are tax-free and can be used as you choose Your loan is insured by the Federal Housing Administration (FHA) Eligibility To be eligible for a HECM loan: The youngest borrower must be at least 62 years of age Your home must be your primary residence and have sufficient equity You must have the ability to pay off your existing mortgage using the HECM loan proceeds You must live in a single family, two-to-four unit 1 owneroccupied home, townhouse, approved condominium or manufactured home Did you know? HECM loans may be utilized by seniors needing to increase their cash flow as well as by affluent senior borrowers who are using HECM loans as part of their financial and estate planning. 1 Not applicable to HECM for Purchase www.facebook.com/reversemortgageseminars 3

Requirements In addition to eligibility, the following conditions must be met: Complete a HUD approved counseling session Maintain your home according to FHA requirements Continue to pay property taxes and homeowners insurance Did you know? With a HECM loan, you still own your home. You retain the title and ownership during the life of the loan and can sell your home at any time. The lender will add a lien onto the title to guarantee payment. 4 3

Types of Loans There are two types of Home Equity Conversion Mortgage (HECM) loans. It is important to select the one that best meets your needs. HECM Loan The HECM is available as either an adjustable- or fixed-rate loan. With the adjustable rate, the rate is adjusted monthly based on the LIBOR (London Inter Bank Offered Rate). The fixed-rate HECM maintains the same interest rate over the life of the loan. Did you know? You can make monthly payments and reduce your HECM loan balance. HECM for Purchase Loan The HECM for Purchase can help homeowners buy their next home without monthly mortgage payments. This loan enables borrowers to use the equity from the sale of a previous residence to buy their next primary home in one transaction. Did you know? The HECM is a non-recourse loan. If you sell the home to repay the loan, you or your heirs will never owe more than the loan balance or the value of the property, whichever is less; and no assets other than the home may be used to repay the debt. www.facebook.com/reversemortgageseminars 5

Determining Your Proceeds The funds available, also known as the Principal Limit, from a HECM loan depend upon: Age of the youngest borrower The lesser of the appraised value of your home, sale price, or the FHA national lending limit Current interest rates Balance of your existing mortgage, if applicable, and all mandatory obligations as defined by the HECM requirements The funds available to you may be restricted for the first 12 months after loan closing, due to HECM requirements. Consult your reverse mortgage advisor for detailed program terms. 6 5

How You Can Get Your Money With an adjustable-rate HECM loan, you can select: Tenure Equal monthly payments as long as at least one borrower lives in, and continues to occupy, the property as a principal residence. Term Equal monthly payments for a fixed period of months selected by the borrower. Line of Credit Unscheduled payments or installments, at any time and in an amount of your choosing, until the line of credit is exhausted. Modified Tenure Combination of a line of credit, plus scheduled monthly payments, for as long as you remain in the home. Modified Term Combination of a line of credit, plus monthly payments, for a fixed period of months selected by the borrower. Lump Sum A single payment. Borrowers may access a maximum of 60 percent of the principal limit amount for the first 12 months after loan closing. Borrowers may be eligible to access an additional 10 percent, subject to additional HECM requirements, of the principal limit amount for the first 12 months after loan closing. www.facebook.com/reversemortgageseminars 7

Did you know? Many borrowers use a HECM loan to pay off an existing mortgage and eliminate monthly mortgage payments. You re Protected A HECM loan has built in safeguards that protect you and the home: Federal Housing Administration (FHA) Insured HECM loans are FHA insured. You are always protected against lender insolvency and can expect to receive your proceeds. Mandatory Mortgage Insurance HECM loans are required by U.S. Department of Housing and Urban Development (HUD) to charge mandatory mortgage insurance. This insurance protects borrowers and their heirs in the event the loan balance is higher than the home s value at the time of sale. Independent Counseling Independent HUD approved counselors provide you with objective information and help you understand how HECM loans work. Capped Interest Rates If your loan has an adjustable interest rate, there is a limit on how much some interest rates can change during a specific period of time. Three Days to Cancel After signing your loan closing paperwork, you have three business days to cancel the loan. This Right of Rescission applies to the HECM for Refinance Product, but does not apply to the HECM for Purchase loan. 8 443-901-7649

About Our Company At Bayshore Mortgage Funding we take the time to understand your situation. We will educate and advise you, enabling you to make a well informed and empowered decision. Obtaining a reverse mortgage with Bayshore Mortgage Funding isn t just about getting a loan. It is about helping you reach personal and financial goals through home ownership. Reverse mortgage professionals will guide you through every step of the process when you decide that a reverse mortgage is the right fit. We treat our clients with the utmost of respect and are always available. Through a quick, no risk, no obligation consultation, we can provide you an accurate quote of the benefits that you are eligible to receive. You can be assured that any information we collect is held in strict confidence. Headquartered in Towson, Maryland, Bayshore Mortgage Funding is a full service mortgage bank that has been serving the east coast since 2001 as a top lender. Bayshore Mortgage Funding has recently partnered with Steven Sless, Ian Sandler and Andrew Parker to start their reverse mortgage division. The partners bring with them over forty years of mortgage experience. In addition, the partners have taken their previous two companies to top ten status in the reverse mortgage landscape. Now partnered with Bayshore Mortgage Funding, they are looking forward to taking their third company to top ten status. Bayshore Mortgage Funding is committed to providing the best service, programs, education and PEACE OF MIND to all of our prospective clients. Bayshore Mortgage Funding remains true to its mission: Provide comprehensive reverse mortgage solutions to their clients while closing loans among the fastest in the industry. For additional information please visit www.facebook.com/reversemortgageseminars. www.facebook.com/reversemortgageseminars 9

Real Testimonials from our Valued Clients (in their own words) Dear Mr. Sandler, We would like to take the opportunity to thank you for your help in securing a Reverse Mortgage Line of Credit. You made the process incredibly easy by providing us with valuable information, reducing closing costs and managing the process efficiently. The face that we never had to leave our home for any of the processes was a pleasant surprise. During the application and closing processes, you were always available to provide guidance and assistance, and to answer all our questions to our satisfaction. You treated us with respect and made us feel like we are your most important customers. Your high level of service is a rarity in today s business world. Again, thanks for all your help. We look forward to working with you in the future. Sincerely, David Gilley Ann Shelley Gilley In Re: Ian B. Sandler Mortgage Consultant/Branch MGR. To Whom It May Concern: This is to congratulate you on your choice of consultants. Ian did a wonderful job on helping us to obtain our reverse mortgage. He is very educated in what he is doing, and Ian was very kind and helpful and ready to answer any questions we had regarding the reverse mortgage. We will highly recommend him to anyone we come in contact with regarding this action. Thank You, Myral C. Kittle Donald R. Kittle 10 443-901-7649

Real Testimonials (in their own words) cont d. I am writing to let you know what an outstanding banking experience I had with Steve Sless. My husband and I have applied for 11 mortgages over the past 40+ years. I ve never encountered a loan specialist of Steve s caliber. He is extremely knowledgeable, articulate, interested, personable, compassionate, hard-working, and in my encounters with him consistently strives for excellence. Despite his relative youth, he displays a degree of professionalism and maturity that bespeaks well of his upbringing and is a highly positive reflection on him personally and your institution generally. Steve made what is typically a routine and often tedious process very enjoyable. He deserves every advancement in his chosen career. Sincerely, Andrea M. Kopp I contacted 4 or 5 lenders regarding the reverse mortgage and Steven Sless was one that called me back and answered all my questions. Steve made the whole transaction easy to understand. I would recommend Steve Sless at Maverick Funding Corp. to everyone interested in a reverse mortgage or a regular mortgage. My Loan closed without incident, the figures did not change from the figures Steve has gone over with me. Steve is thorough and efficient and GREAT to work with. Sincerely, Jane Why From start to finish, we have just had an outstanding experience in obtaining our reverse mortgage from Maverick Funding Corp. It was great working with Steve Sless who did an excellent job in getting things done and on time. It was nice working with a competent individual doing his thing, in bringing all the parts from the many areas involved together seamlessly. He never failed to keep us well informed. Most impressive was his repeated checking that we understood all that was happening, and he was successful, answering our questions clearly. Need a recommendation? You Got One. Sincerely, Mort Rubel www.facebook.com/reversemortgageseminars 11

Reverse Mortgages in the News U.S. baby boomers desperate for retirement income are increasingly turning back to a financial product that, after the housing bust, had been left for dead: the reverse mortgage. Many retirees haven t saved enough to cover expenses for the rest of their lives. But many of them have one major asset - a home. A reverse mortgage allows them to borrow against that, and they don t have to make any payments on the loan until they move or die. Borrowers took out $15.3 billion of the loans in 2013, an increase of 20 percent from the year before, according to industry publication Inside Mortgage Finance. The record year was 2009, when there were $30.21 billion of reverse mortgage loans made. Brokers and bankers say the 77 million retiring baby boomers will likely help fuel further growth in the loans in the coming years, making the business a growth spot in a home loan market where volumes have recently been declining. Reuters 5/17/2014 Reverse mortgages aren t just for people struggling to keep their homes anymore. The loans also can work for well-heeled retirees looking for a buffer to keep them from selling investments at the wrong time, according to academic researchers. And Congress last month gave a boost to the type of reverse mortgage that works best for that purpose. Wall St Journal 8/16/2013 Reverse mortgages have become increasingly popular in recent years, as cash-strapped seniors seek ways to keep pace with rising expenses -- not to mention cope with the pummeling their retirement savings took during the Great Recession. Huffington Post 1/29/2014 12 443-901-7649

Reverse Mortgages in the News cont d. Home equity will become a more significant source of funds to support retirement, because increasing numbers of retirees will face a double challenge: inadequate savings and the prospect of lower-than-historical investment returns. This MarketWatch article by Brett Arends highlights research from the Center for Retirement Research (CRR) at Boston College and the Employee Benefit Research Institute (EBRI) on the state of retirement savings. CRR estimates that half the country is at risk of being unable to maintain its standard of living in retirement, and EBRI found that 43% of baby boomers and Generation Xers are at risk of running out of money in retirement. EBRI also noted that 66% of workers have saved less than $50,000 for retirement. Advisor Perspectives Inc. 3/18/2014 Used properly, a reverse mortgage can also serve as a standby line of credit that can shield investment portfolios in down markets and improve chances that clients won t outlive their money. Investment News 2/16/2014 Once widely seen as money of last resort, reverse mortgages are fast entering the mainstream of retirement income. Boomers are turning to reverse mortgages earlier to pay off debt or improve their lifestyle, according to a report from MetLife Mature Market Institute. Increasingly, those approaching retirement view home equity as a key source of future income. Boomers have always thought differently about their homes and debt. They moved and remodeled, and they borrowed like no generation in history. Popularizing the reverse mortgage, maligned in the past for high fees and high risks, seems a natural evolution. The good news is that reverse mortgages are now far more consumer friendly, though they are not for everyone. Boomers aged 62 to 64 now make up 21% of likely reverse mortgage borrowers up from just 6% of that age group in 1999. Nearly half of those considering a reverse mortgage are under 70. The most common age of borrowers in 2003 was 74. By 2006, the most common age had dropped to 71, and it fell to 63 in 2009. Time Mag 3/16/2012 www.facebook.com/reversemortgageseminars 13

To our valued clients, we give you this guarantee: We will always treat you with dignity and respect. We will provide patient and personal service. We will walk you through the process, start to finish, and ensure you understand every step of the way. And we will ALWAYS remember your name. Bayshore Mortgage Funding. NMLS#196858, Executive Offices, 8601 LaSalle Rd ste 102, Towson Md. Licensed by the Pennsylvania Department of Banking License #36977; Licensed by the Virginia State Corporation Commission, License #MC5462, also licensed in DC, DE, FL, MD, SC. Equal Housing Lender. (www.nmlsconsumeraccess.org) Contact a Reverse Mortgage Professional Today Steven Sless NMLS # 298581 Ian Sandler NMLS # 109372 14 443-898-1257 443-901-7649