Retire More Freely Self-Mailer

Retire More Freely Self-Mailer

Your Guide to Retiring More Freely

www.reversefacts.com 888.598.0894

The Retirement Reality Today, older Americans face a great deal of uncertainty as they move through their retirement. With rising healthcare costs, a volatile stock market and ongoing mortgage and credit debt, it’s not surprising that 87% of Baby Boomers are not very confident that they will retire in a comfortable lifestyle. 1 Many are afraid that their savings accounts, investment portfolios and government benefits will not provide enough money to sustain their changing needs and financial obligations as they age.

The average couple will spend $245,000 4 on healthcare in retirement

The average length of retirement in the U.S. is 18 years 2

Only 10% of older Americans have long-term care insurance 5

Families headed by people age 65–74 owe $65,686 in debt on average 3

1 Source: Campbell, Todd. “9 Baby Boomer Retirement Facts That Will Knock Your Socks Off.” The Motley Fool, 19 Mar. 2016, www.fool.com/investing/general/2016/03/19/9-baby-boomer-retirement-facts-that-will-knock-you.aspx. 2 Source: U.S. Census Bureau. 3 Source: Go Banking Rates. (2018) “The No. 1 Cause of Financial Stress in Every State.”

4 Source: Sandra Timmermann, “Shocks and Loss in Retirement: Preventing Despair, Promoting Resilience,” Journal of Financial Service Professionals 70, No. 5 (2016). 5 Source: Susan Hoover, “Long-Term Care Insurance (LTCI): The Good, the Bad, and the Ugly,” Enterprising Investor blog, CFA Institute, September 19, 2016.

1 | Retire More Freely

Rethinking Retirement Planning If you are like most people, retirement planning generally relies on assets such as 401(k)s, IRAs,

Home Equity as a Percent of Net Worth among Homeowners Age 65 and Above

traditional pensions, Social Security benefits, as well as regular taxable savings and investment accounts. But as a homeowner you have another, often overlooked, retirement planning asset: Home Equity . U.S. homeowners age 62+ have more than $7.23 trillion in home equity, 6 making it the largest asset for most households entering retirement. 7 For the average retiring couple, home equity makes up 70% of their net worth—with other assets like IRAs, savings and personal property only making up 30%. 8 With such a large proportion of personal wealth tied up in one’s home, it’s time to rethink how home equity can be used as another tool in your financial arsenal.

Other 30%

Home Equity 70%

NewWays to Access Home Equity Over the last 30 years, reverse mortgages have gained acceptance as part of strategic retirement planning. In fact, a growing number of respected retirement researchers, such as Harold Evensky, Dr. John Salter, Dr. Wade Pfau, and the Center for Retirement Research at Boston College have all conducted numerous studies to evaluate the pros and cons of reverse mortgages for the benefit of consumers. They have concluded that the reverse mortgage is an important option, with multiple uses that can often help older homeowners be better financially prepared in retirement, and avoid outliving their money. 9 “ Several recent research articles have demonstrated how responsible use of a reverse mortgage can

enhance an overall retirement-income plan…Reverse mortgages give responsible retirees the option to create liquidity for an otherwise illiquid asset, which can, in turn, potentially support a more efficient retirement-income strategy (more spending and/or more legacy). ” —Wade Pfau, Ph.D., CFA, “Reverse Mortgage Background and History” Forbes, September 12, 2018

6 Source: National Reverse Mortgage Lenders Association (NRMLA)/RiskSpan Reverse Mortgage Market Index (RMMI). 7 Sass, Steven A., “Is Home Equity an Underutilized Retirement Asset?”, Center for Retirement Research at Boston College, Number 17-6, March 2017 8 US Census Bureau, “Wealth, Asset Ownership & Debt of Households Detailed Tables: 2015” 9 Salter, John., Evensky, Harold., & Pfeiffer, Shaun. (Aug 2012). Standby Reverse Mortgages: A Risk Management Tool for Retirement Distributions. Journal of Financial Planning, pg. 40. | Pfau, Wade. D. (2016) Reverse Mortgages: How to use Reverse Mortgages to Secure Your Retirement. Retirement Researcher Media.

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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 n  Cover healthcare expenses

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. With a HECM, the home must meet U.S. Department of Housing and Urban Development (HUD) minimum property standards and you must be age 62 or older. 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.

3 | Retire More Freely

Comparing Your Options At Reverse Mortgage Funding LLC (RMF), we recognize that each of our customers is unique. That’s why we offer a full range of powerful, customized options to help you access your home equity and gain a new source of income tax-free funds.* To help you better understand your options, here is a quick overview of some of the key features of each product. We can help you determine if a reverse mortgage is right for you, and if so which options best fit your needs and plans .

Home Equity Line of Credit (HELOC)

Home Equity ConversionMortgage (HECM)

Converts home equity into loan funds? Age-based lending How much can I borrow? Flexible repayment feature? Minimummonthly payment required?

YES NO No set amount

YES 62 or older Less than $822,375 YES † NO † YES More lenient YES

NO YES NO Stricter NO

Non-recourse feature Income qualifications Can be used to buy a home?

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 traditional mortgage or paying all cash. n  With its flexible repayment feature, you can 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.

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Choose the experts at RMF

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 lifestyle 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 and we service more than 84,000 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 a 4.7 out of 5 stars/Excellent score on Trustpilot; 2 4.8 out of 5 stars on LendingTree; 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 have local, licensed loan specialists who can explain everything, answer all your questions, and give you straightforward guidance that’s based on your specific needs and concerns. We can meet with you either in person at a location of your choice or virtually using your computer. At all times, your health and safety are our number one priority.

Our Customer for Life Commitment * 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. We’re committed to ensuring that your experience is optimal every step of the way, and we’re here for our borrowers throughout the life of the loan.

CUSTOMER FOR LIFE Commitment

RMF PRICE MATCH PROGRAM

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. †

In recognition and appreciation of the sacrifices made by the men and women who have served in our country’s Armed Forces, we proudly offer a Veteran Discount Program . The program is available to anyone who can provide proof of service and entitles veterans and their spouses a discount of up to $450 on appraisal costs. ‡

1 Source: RMF customer satisfaction survey, as of January 2020

2 Source: Trustpilot, as of May 2020

3 Source: LendingTree Ratings and Reviews, as of May 2020

4 Source: Better Business Bureau Rating, as of May 2020

5 | Retire More Freely

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 reverse mortgage in the future. However, if a total disaster strikes...it is nice to know that we have a fallback plan where we can easily tap the equity in our home if we feel we need to....I honestly cannot see why anyone would not want to take advantage of this valuable tool to protect their financial security. ” —Gil A., via Trustpilot

*RMF’s Customer for Life Commitment program is subject to change or cancelation at any time and without notice. † 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. ‡ RMF’s Veterans Discount Program is subject to change or cancellation at any time and without notice. This program offering can only be redeemed with Reverse Mortgage Funding LLC. Consumer must pay for the appraisal upfront. This program offering is valid for an appraisal credit of up to $450.00 off allowable closing costs. In some instances, the credit may not be valid or may be less due to loan program restrictions. Program offering may not be valid with low cost loan programs or other lender credits. Home Equity Conversion Mortgage offers apply to refinances only. This offer is not available for Home Equity Conversion Mortgage for purchase transactions. This offer is available with RMF’s Equity Elite ® product. Loans currently in process do not qualify. The credit will be applied at the closing of your mortgage loan with Reverse Mortgage Funding LLC, and it will be shown on the HUD-1 Settlement Statement. Loans must be closed and funded with Reverse Mortgage Funding LLC as the lender. All loans are subject to approval. Program, rates, terms and conditions apply and are subject to change without notice. Program offering is not transferable. No cash value. This program offering is not redeemable for cash or cash equivalents. Not valid with any other discount or promotional offers. Some restrictions apply. Void where prohibited, taxed or restricted by law. 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. 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; Licensed by the Department of Business Oversight 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; Texas Mortgage Banker Registration in-state branch address 6044 Gateway East, Suite 236, El Paso, TX 79905. 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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As Requested ... Your Guide to Retiring More Freely

2355 Gold Meadow Way, Suite 150 Gold River, CA 95670

Gold River, CA 95670

Rethink Retirement Planning. NewWays to Access Home Equity . n  Open a standby line of credit n  Eliminate your monthly mortgage payment * n  Consolidate your high interest debt

We’re proud to continually earn high praise fromour customers:

4.8 out of 5 onLending Tree

Customer Satisfaction ★

*As with any mortgage, you must meet your loan obligations, keeping current with property taxes, insurance, and maintenance. 98% Customer Satisfaction rating as of January 2020. Trustpilot and LendingTree ratings as of May 2020.

† Offer Details: This offer is valid only for mortgage loan applications received on or before the Expiration Date specified below. This offer can be redeemed once at Reverse Mortgage Funding LLC, 1455 Broad Street, 2nd Floor, Bloomfield, NJ 07003, 1-888-494-0882. Company NMLS ID: #1019941. For licensing info, got to www.nmlsconsumeraccess.org. The offer code must be presented at the time of application. Consumer must pay for the appraisal up front. This offer is valid for a lender credit of up to $300.00 off allowable closing costs. In some instances, the credit may not be valid or may be less due to loan program restrictions. Offer may not be not valid with low cost loan programs or other lender credits. Home Equity Conversion Mortgage offers apply to refinances only. This offer is not available for Home Equity Conversion Mortgage for purchase transactions. Loans currently in process do not qualify. The credit will be applied at the closing of your mortgage loan with Reverse Mortgage Funding LLC, and it will be shown on the HUD-1 Settlement Statement. Loans must be closed and funded with Reverse Mortgage Funding LLC as the lender. All loans are subject to approval. Program, rates, terms and conditions apply and are subject to change without notice. Offer is not transferable. No cash value. This offer is not redeemable for cash or cash equivalents. Not valid with any other discount or promotional offers. Some restrictions apply. Void where prohibited, taxed or restricted by law. Expires August 31, 2021.