Retire More Freely: Flexible Home Financing Solutions

Retire More Freely: Flexible Home Financing Solutions

Retire More Freely Flexible Home Financing Solutions

You’ve worked hard and saved for your retirement. Now it’s time to think about how to best enjoy these years. If you are an older homeowner or homebuyer, you owe it to yourself to consider how a reverse mortgage could help you meet your retirement goals. A reverse mortgage is a lot like a traditional mortgage or home equity loan. But it’s designed specifically for people who are in or approaching retirement, so it has some added benefits—including the flexibility to make any size monthly payment you want, or none at all. As with any mortgage, you own your home. And whatever equity is available when you sell it is yours. You just have to meet your loan obligations, keeping current with property taxes, insurance and maintenance. We can help you determine if your home qualifies for a reverse mortgage, and if this loan option is right for you. Financial solutions for a new generation of retirees

HHHHH “ As a retired CFO, I’mvery good with numbers and the numbers were good…All were true to their word. ” —Richard M., via Trustpilot

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Reverse mortgages continue to grow in popularity because they allow you to tap into the equity built up in your home, giving you the benefits of a home equity loan or home equity line of credit—and more. And the proceeds are generally not considered taxable income.* But unlike conventional mortgages or home equity loans, reverse mortgages have a flexible repayment feature . Each month, pay as much or as little as you like, or defer repayment. You decide. As long as you comply with the terms of the loan, a reverse mortgage doesn’t have to be repaid until the home is sold, or it’s no longer your primary residence. † Flexible, Secure, Tailored to Your Needs

We offer a full range of reverse mortgage options—including Home Equity Conversion Mortgages (HECMs) , as well as our own “private label” product called Equity Elite ® that’s available to borrowers as young as 55 in select states.** There are a variety of choices for interest rates, the amount of money you can access, how you can receive the proceeds, and closing costs—including our Equity Elite ® ZERO option, which offers a lender credit to be applied towards most closing costs. †† ®

Buying a home with a reverse mortgage If you want to relocate or “right-size” to a home that better fits your life, a reverse mortgage can provide the money you need to purchase your new home, to be occupied as your principal residence. n Buy the home you want using reverse mortgage financing, instead of using a regular mortgage or paying all cash. n With its flexible repayment feature, you can potentially keep more of your savings. †

*Not tax advice. Consult a tax professional. † As with any mortgage, you must meet your loan obligations, keeping current with property taxes, insurance and maintenance.

**Available to borrowers as young as 55 in select states only. Higher minimum age requirements may apply. Visit www. reversefunding.com/equity-elite for details.

† With this pricing option, borrower receives a lender credit covering nearly all closing costs. There is a non-refundable independent counseling fee of approximately $125 on average, which the borrower pays directly to the counseling agency. Terms and conditions apply. Not available in all states.

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A reverse mortgage can help you: n Refinance existing mortgage debt, to dramatically reduce your monthly payments* n Consolidate debts such as high-interest credit cards, auto loans, etc. to lower your monthly bills n Improve cash flow n Gain payment flexibility, for more financial control

n Pay for large purchases, like a new automobile n Assist a grandchild headed off to college n Fund home renovation projects n Establish a standby line of credit you can tap into as needed n Buy a home

Who can get a reverse mortgage? To qualify, you must own your home and live in it as your primary residence. Houses and most condominiums qualify, as do many homes with existing mortgages. The home must meet U.S. Department of Housing and Urban Development (HUD) minimum property standards. For a HECM, you must be age 62 or older. Equity Elite ® is available to those as young as 55 (not available in all states; and some states may impose a higher age requirement). When to repay the loan As long as you meet your loan obligations, the loan does not have to be repaid until you sell the property, no longer live in the home as your primary residence for longer than 12 months, or pass away. Just like a traditional mortgage, the loan also becomes due if you fail to comply with the terms of the loan—including keeping up with property taxes, insurance and maintenance. Typically, the loan (along with accrued interest and fees) is repaid with funds received from the sale of the home, and you or your heirs retain any remaining money after the loan is repaid. If you or your heirs want to keep the property, the loan can be repaid at any time using a traditional mortgage or other assets.

For example: Meet Frances, age 71.

Frances has paid off her first mortgage, but has a home equity loan that requires her to make burdensome monthly principal and interest payments. With a reverse mortgage, she can refinance her home equity loan in order to drastically reduce or even eliminate that monthly payment, thanks to the reverse mortgage’s flexible repayment feature.*

After the home equity loan is paid off, she can choose to take her remaining reverse mortgage funds as a steady stream of monthly payments for as long as she lives in her home—or to set them aside as a line of credit that she can use in the future, as needed. She could even do a combination of the two. † As a result, Frances is able to:

n Keep more money in her pocket each month n Be more financially prepared for the future n Avoid tapping into invested assets

*As with any mortgage, you must meet your loan obligations: keeping current with property taxes, homeowners insurance and keeping your home in good condition. † Borrowers who elect a fixed rate loan will receive a single disbursement lump sum payment. Other payment options are available only for adjustable rate mortgages.

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5 Reverse Mortgage Myths: The Facts

FACT: Just like any mortgage or home equity loan, you continue to own your home, with your name on the title. As with any mortgage, you must meet your loan obligations, keeping current with property taxes, insurance, and maintenance The bank will ownmy home. Reverse mortgages take advantage of retirees. FACT: Reverse mortgages are specifically designed to help retirees. The industry is also highly regulated: Any lender offering reverse mortgages must follow strict state and federal guidelines and regulations that are in place to protect borrowers.

MYTH #1

MYTH #2

I won’t qualify since I have existing mortgage debt. FACT: Proceeds from your reverse mortgage would first be used to pay off any existing mortgage(s).

MYTH #3

I won’t be able to leave my home to my heirs. FACT: Your heirs will still inherit your home. If they want to keep the home they will have to pay back the loan balance including the funds you used plus accrued interest and fees. Or, they can sell the home to repay the loan. Once it’s repaid, they retain any remaining equity. Reverse mortgages have expensive up-front costs FACT: Most of the fees associated with a reverse mortgage loan (other than the government-required reverse mortgagecounseling) can be financed with your loan. This helps cut down on up-front costs. Your individual rates and fees depend on factors like: current interest rates, your home’s value, and your age. RMF also offers a loan with a lender credit that can be applied toward most closing costs. *

MYTH #4

MYTH #5

* As with any mortgage, you must meet your loan obligations, keeping current with property taxes, insurance and maintenance.

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Comparing Your Options Are there alternatives to reverse mortgages?

Yes, many homeowners look at refinancing with a traditional mortgage loan or a Home Equity Line of Credit (HELOC). However, for homeowners age 55 and older, in many cases a reverse mortgage is a more suitable option. † That’s because it’s designed to be sustainable for those on a fixed or reduced income—whether it’s now, or in the future. Reverse mortgages have a flexible repayment feature,* making themmore desirable during this life stage. Which financing option is right for you?

Home Equity Line of Credit (HELOC)

Converts home equity into loan funds? Age-based lending How much can I borrow? Flexible repayment feature? Minimummonthly payment required? Non-recourse feature (You won’t owe more than the home is worth when the loan is repaid) Income qualifications Can be used to buy a home?

YES NO No set amount

NO YES

NO Stricter NO

HHHHH “ Endebis pediscit, et lab int esequam fugitiur sunt abor moloreh enitasit aut ut aut volorep eliqui alis et, comniminctur aut ut et veromodisinim etur sit, aligent estium eos sapis dolesequia sit, comnimuscia quia cuptas et quiandita dunt fugiatini nobit eaqui accullu ptureri onsequae. ” —Name, via HHHHH “ I am a retired certified financial planner practitioner, and I believe that I have set up our finances so that we probably won’t need to tap this r verse mortgage in the future. However, if a otal disaster strikes...it is nice to kn w that we h ve a fallback plan where we can easily tap the equity in our hom if we feel we need to....I honestly cannot see why nyone would not want to take advantage f this valuable tool to protect their financial security. ” —Gil A., via Trustpilot

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Home Equity Conversion Mortgage (HECM)

Traditional Mortgage

Equity Elite

YES NO No set amount

YES 55 or older † Up to $4 million ‡

YES 62 or older Less than $970,800

NO YES

YES* NO*

YES* NO*

NO Stricter YES

YES More lenient YES

YES More lenient YES

*As with any mortgage, homeowners must meet loan obligations, keeping current with property taxes, insurance and maintenance. † Available to borrowers as young as 55 in select states only. Higher minimum age requirements may apply. Visit www.reversefunding.com/equity-elite for details. ‡ Not applicable in all states; MA imposes a maximum loan amount of $1.5MM. Visit www.reversefunding.com/equity-elite for details.

HHHHH “ ReverseMortgage Funding is a caring and knowledgeable company. I was so happy that I chose to work with themover all the other companies that were callingme. They were not pushy and they answered all my questions and addressedmy concerns immediately. ” —Diane C., via Trustpilot

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Choose the Specialists at RMF A national leader, and your local reverse mortgage lender

rated Excellent

4.8 out of 5 onLending Tree

Customer Satisfaction ★

At Reverse Mortgage Funding LLC (RMF), we are dedicated to helping older Americans live the retirement lifestyles that they imagined and deserve, in the comfort of their own homes. We’re proud to be one of the nation’s top reverse mortgage lenders. RMF services more than 72,500 reverse mortgage borrowers. As a direct lender, we also have certain pricing advantages—and we can pass the savings on to you. As a result of our commitment to providing an extraordinary and positive customer experience, we have earned a 98% customer satisfaction rating; 1 4.8 out of 5 stars on LendingTree; 2 rated excellent on Trustpilot; 3 and we’re accredited by the Better Business Bureau. 4 Part of the reason for these excellent ratings is that we do things differently than other lenders: We provide an experience that’s tailored to each individual. We know it can be difficult to understand over the phone what all your options are, and how the program actually works. So we have local, licensed loan specialists who can come to your home (or another location of your choice) to sit down and talk with you, explain everything, answer all your questions, and give you straightforward guidance that’s based on your specific needs and concerns.

Our Customer for Life Commitment 5 means we’re with you every step of the way with personalized, ongoing service—from our first conversation on day one, throughout the entire loan process, and even after closing. We not only make loans, but after closing we also service all the loans we originate, and maintain a long-term relationship with our customers.

CUSTOMER FOR LIFE Commitment

HHHHH “ EXCELLENT Company!! I would recommend RMF!! ”

—Rachel, via Trustpilot

1 Source: RMF customer satisfaction survey, December 2021 2 Source: LendingTree Ratings and Reviews, as of December 2021

3 Source: Trustpilot, as of December 2021 4 Source: Better Business Bureau, as of December 2021

5 RMF’s Customer for Life Commitment program is subject to change or cancelation at any time and without notice.

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Let us give you extraordinary customer service from the company that cares, and help you retire more freely.

It’s important to work with a lender that makes you feel informed, confident and comfortable in your decision-making. That’s what we aim to do. RMF is also committed to delivering a great product and great pricing. We are so confident in it that we created our Price Match program † : If we are unable to match or beat a competitor’s pricing, we’ll give you a $1,000 gift card. †

RMF PRICE MATCH PROGRAM

Connect withUs

Follow us: facebook.com/ ReverseMortgageFundingLLC

Watch our videos: reversefacts.com/youtube

Read our Retirement News articles: reversefunding.com/blog

† Price Match Program is subject to Reverse Mortgage Funding’s LLC right to rescind or modify the terms of this offer without prior notice as well as additional terms located at https:// www.reversefunding.com/price-match-terms-of-use-and-promotional-rules.

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Your Reverse Mortgage Roadmap

STEP 1: Preparation n  Education. Your RMF loan specialist will have all the information you’ll need to help you decide if a reverse mortgage is the right solution for you. He or she can meet with you in person to go over all the details and answer all your questions. STEP 2: On the Road n  Application. If you’ve decided to move forward, next you’ll complete and submit your application. The application includes some personal information, and a financial assessment will be conducted to make sure you’ll be able to afford ongoing expenses like property taxes and insurance and home maintenance. Your RMF loan specialist will guide you through this process, and let you know what documents you’ll need. n  Counseling. You’ll meet with a third-party reverse mortgage counselor who’s approved by the U.S. Department of Housing and Urban Development (HUD), to make sure you understand all aspects of the loan. STEP 3: Rounding the Bend n  Loan Processing & Underwriting. Your home will be appraised, by an independent appraiser, to determine the value. Then the appraisal and loan package will be sent to an RMF underwriter for review and approval. The underwriter will make sure all the information in the package is correct and compliant with all laws and regulations. STEP 4: Almost There n  Closing. After your loan application is approved, you will sign your closing documents with a title officer or attorney (depending on your state’s requirements). STEP 5: Arrival! n  Funding and Disbursement. Three days after closing, the loan funds are disbursed and you can access them according to the payment plan you selected. Your loan funds will first be used to pay off any existing mortgage on your home, a new lien (the reverse mortgage) is placed on the home, and you can use the remaining funds from your reverse mortgage however you choose.

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HHHHH “ My husband and I are so happy that we went with ReverseMortgage Funding....(My loan specialist) explained the entire process tome, answered all of my questions, explained options tome and helped in every way. I felt as if I was working with a close friend....Everything went very smooth and painless. Great job! Will recommend Reverse Mortgage Funding 100%....Thank you all for making a difficult decision so simple. ” —Margaret M., via Trustpilot

Seemore reviews at trustpilot.com/review/reversefunding.com

rated Excellent

4.8 out of 5 onLending Tree

Customer Satisfaction ★

98% Customer Satisfaction rating as of January 2021. LendingTree, Trustpilot, and Better Business Bureau ratings as of October 2021. This material has not been reviewed, approved or issued by HUD, FHA or any government agency. The company is not affiliated with or acting on behalf of or at the direction of HUD/FHA or any other government agency. Equity Elite Reverse Mortgage (“Equity Elite”) is Reverse Mortgage Funding LLC’s proprietary loan program, and it is not affiliated with the Home Equity Conversion Mortgage (HECM) loan program, which is insured by FHA. Equity Elite is available to qualified borrowers who also may be eligible for HUD, FHA’s HECM program or are seeking loan proceeds that are higher than HUD, FHA’s HECM program limit. Equity Elite currently is available only for eligible properties in select states. Please contact your loan originator to see if it is currently available in your state. Upon a maturity event, any non-borrowing individuals with an ownership interest in the property, including non-borrowing spouses, will have a short period of time (for example, 30 days from a due and payable letter or an alternate time specified by the loan servicer if extensions are available under the circumstances) to purchase the property from the estate or, if the non-borrower inherits the property, pay the loan in full using any sources of funds available to them. Any non-borrowing individual, including a non-borrowing spouse, should have a plan to pay off an Equity Elite reverse mortgage upon the borrower’s death or any other maturity event. If the non-borrower is unwilling or unable to purchase the property or pay the loan in full, there is no protection for the non-borrower (including a non-borrower spouse) to maintain an interest in the home or to continue residing in the home past the maturity event and the non-borrower may be evicted upon foreclosure . The FHA HECM program has protections in place for certain non-borrowing parties, so a reverse mortgage applicant with certain non-borrowing parties should strongly consider a FHA-insured HECM loan (see HECM guidelines or ask an RMF representative for details). Under the Equity Elite reverse mortgage loan program, a maturity and/or default event occurs when the last surviving borrower no longer lives in the home as his or her primary residence for at least 12 months, the property charges (including taxes, insurance, or any other property charges) are not paid, required repairs are not completed or the property is not maintained, or any other maturity and/or default event, as specified in the Security Instrument, occurs. Charges such as an origination fee, mortgage insurance premiums, closing costs and/or servicing fees, if applicable, may be assessed and will be added to the loan balance. As long as you comply with the terms of the loan, you retain title until you sell or transfer the property, and, therefore, you are responsible for paying property taxes, insurance and maintenance. Failing to pay these amounts may cause the loan to become immediately due and/or subject the property to a tax lien, other encumbrance or foreclosure. The loan balance grows over time, and interest is added to that balance. Interest on a reverse mortgage is not deductible from your income tax until you repay all or part of the interest on the loan. Although the loan is non-recourse, at the maturity of the loan, the lender will have a claim against your property and you or your heirs may need to sell the property in order to repay the loan, or use other assets to repay the loan in order to retain the property. ©2021 Reverse Mortgage Funding LLC, 1455 Broad Street, 2nd Floor, Bloomfield, NJ 07003, 1-888-494-0882. Company NMLS ID: #1019941. For licensing information, go to: www.nmlsconsumeraccess.org. Arizona Mortgage Banker License #0927682; Department of Financial Protection and Innovation under the California Residential Mortgage Lending Act; Loans made or arranged pursuant to a California Financing Law license; Georgia Mortgage Lender Licensee #36793; Massachusetts Mortgage Lender License #ML1019941; Licensed by the New Jersey Department of Banking & Insurance; Licensed Mortgage Banker-NYS Department of Financial Services-in-state branch address 700 Corporate Blvd, Newburgh, NY 12550; Rhode Island Licensed Lender. For California consumers: For information about our privacy practices, please visit https://www.reversefunding.com/privacy. Not all products and options are available in all states. Terms subject to change without notice. Certain conditions and fees apply. This is not a loan commitment. All loans subject to approval.

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