Reverse Insider | June 2022

Reverse Insider | June 2022

YEAR 2 | VOL 5 | JUNE 2022

REVERSE MORTGAGE FUNDING NEWSLETTER

NATIONAL SAFETY AND HOMEOWNERSHIP MONTH Inside, find tips on how to e nsure your safety in your home and in life.

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Creating a Safer Home Sweet Home with the Help of a Reverse Mortgage Loan Each year, one in four Americans age 65 and over suffer from a fall. And for thousands of older adults, falls occur at home and are a leading cause of injury, death and premature nursing home placement.

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Falls are common, but with the right safety measures in place, they don’t have to be an inevitable part of aging. Living at home during your retirement years requires careful planning and consideration to make your home safer — and to figure how to pay for safety-focused modifications and renovations on a fixed retirement income. At Reverse Mortgage Funding LLC (RMF), our mission is to help meet the needs of older homeowners, helping you remain comfortably at home as long as possible. Whether it’s relocating your bedroom to the first floor, recarpeting slippery floors or buying a new home that better suits you, a reverse mortgage loan can be a powerful financial tool for safely aging in place and funding a rewarding retirement. Keep reading to learn more.

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Elder Abuse: Knowing the Warning Signs to Protect Your Loved Ones

Approximately one in 10 Americans age 60+ have been a victim of elder abuse in some form — from emotional abuse to financial exploitation to physical cruelty. What’s worse, it’s not only strangers committing these crimes. The abuse may be carried out at the hands of a close family member or trusted caregiver. And very often, it goes unrecognized. Could your loved one be a victim? According to the Centers for Disease Control and Prevention (CDC), elder abuse is an intentional act or failure to act that creates a risk of harm to someone age 60 or older. On Wednesday, June 15, World Elder Abuse Awareness Day is observed to recognize and combat the abuse, neglect and exploitation that affect many older individuals. Building a proactive defense Ask yourself the following questions regarding your older loves ones to help mitigate elder abuse from occurring right under your nose. 1. Does your loved one seem withdrawn or confused? A common sign of abuse is the abrupt onset of nervousness, anxiety or forgetfulness. When an individual can’t remember signing a check or making a purchase, it may be more than just a minor memory lapse. Even one-off issues should be investigated to make sure nobody’s being taken advantage of. 2. Have you noticed unusual banking activity? Recent changes in spending patterns, unexplained

account withdrawals or attempting to wire large sums of money can all be signs that something suspicious is occurring. Make sure your loved one knows where his or her money goes every month. Don’t hesitate to step in and check it out if you notice something amiss. 3. Are you suspicious of costly home repairs or renovations? Unfortunately, contractors and service providers don’t always have good intentions with older clients, and unnecessary work or add-ons can result in massive home repair bills. To protect against contractor fraud, make sure a trusted friend or relative is present when a contract is in discussion. 4. Is there a new, unusually close companion in the picture? Pay attention to new friends and relationships. Without regular family visits, it’s easy for strangers to step in and forge a friendship for their own financial gain. Continually check in to ensure that your loved one isn’t isolating himself or herself from other friends, family members or activities they love in favor of a new companion. 5. Are trusted relatives exhibiting peculiar behavior? Don’t assume that just because someone is a family member, they have a loved one’s best interests at heart. In nearly six out of 10 cases, a family member is the perpetrator of elder abuse. Stay in regular contact with older relatives and maintain an open dialogue about financial and care issues. Give them an opportunity to freely discuss potential concerns.

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Elder abuse can rob your loved ones of their resources, pride and independence. But knowing the signs and risks and help them live out their best years with peace of mind. The financial means to navigate the future A reverse mortgage offers older homeowners the ability to safely leverage their home equity for financial security and support. In this highly regulated industry, lenders follow strict state and federal guidelines and regulations to protect borrowers. In turn, borrowers have the benefit of using the funds however they see fit — all while continuing to live in their home and retain ownership*. The loan specialists at Reverse Mortgage Funding, LLC (RMF) can work with you and your older family members to determine if they are the right fit for this financial tool. *As with any mortgage, you must meet your loan obligations, keeping current with property taxes, insurance and keeping your home in good condition.

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Age is just a number, right? While this is true, we can’t ignore the fact that certain health challenges increase as we grow older — and maybe even more so for men. U.S. men are 1.5 times more likely than women to die from heart disease, cancer and respiratory dis- eases. On average, they also die five years earlier than their female counterparts. Men’s Health Week kicks off on June 13 — a time to focus on men's health issues and take proactive steps to live a happy, healthy life. Men over 50 can be just as fit as younger generations, but it may take • Eat a healthy, varied diet. More than one in three adult American men are overweight or obese. A diet that’s low in trans fats, cholesterol, saturated fats, salt and added sugars can help maintain a healthy weight, as well as boost your heart health, control blood pressure and keep your cholesterol at an optimal number. • Get routine health screenings. Did you know that 200,000+ men are diagnosed with prostate cancer every year? It's also the second leading cause of death in men. Health screenings are an important part of a healthy lifestyle, as they often can catch an illness before full-blown symptoms develop. For men over 50, routine screenings include prostate function, blood pressure, cholesterol levels and colon cancer. more effort to keep your well-being in shape. Here are some tips to keep in mind as you age. Healthy Habits for Men Age 50 and Beyond to Celebrate Men’s Health Week

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• Have an issue? See a doctor! Seventy-two percent of men would rather do household chores — like cleaning the bathroom — than go see a doctor. But for many ailments, early detection offers the best chance of a full recovery. Aside from a yearly physical exam and health screenings, it’s critical to visit the doctor if you’re experiencing anything out of the ordinary. • Stay physically active. According to the Centers for Disease Control and Prevention (CDC), adults of any age should get at least 150 minutes of moderate activity per week — that's about 30 minutes a day, five days a week. This is especially important after age 50 because exercise increases your blood flow which increases oxygen throughout your body. This promotes brain and organ function and relieves everyday fatigue. • Don’t miss the benefits of a full night’s rest. The National Institute on Aging recommends that older adults get the same amount of sleep as all adults — about seven to nine hours each night. Older adults who have poor sleep habits are more likely to experience memory problems, excessive daytime sleepiness, a depressed mood and an overall poorer quality of life. If you’re not getting adequate shuteye at night, be sure to incorporate a nap or some rest time into your daily routine. • Wash your hands! Many viruses can live on surfaces for up to 24 hours. Wash your hands with warm, soapy water for at least 20 seconds throughout the day — especially with COVID-19 still a lingering threat for the older population. Use an antibacterial hand sanitizer when you can’t access a sink. Remember, the best years are yet to come, and a strong immune system can help ensure you make the most of them. Healthy finances and healthy aging go hand in hand Despite your best efforts to remain in good health, medical debt is one of the larger obstacles between older individuals and economic well-being. If you’re thinking about a healthcare cost game plan, consid- er the benefits of a reverse mortgage. This type of loan gives you access to the equity you’ve built up in your home over the years. As a borrower, you may access the funds and use them at your own discre - tion to supplement your income, take a vacation, consolidate debt or cover retirement healthcare costs. At Reverse Mortgage Funding (RMF), we’re happy to discuss the pros and cons of a reverse mortgage and help determine if it’s the right tool for you.

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Considering a Reverse Mortgage? Start the Conversation with Your Heirs.

What matters most to you? How do you want your life to touch others when you’re gone? Inevitably, planning your legacy will also involve making sure the assets you’ve worked so hard for during your lifetime — like your home — will have the impact you envision after you pass away. For many older homeowners, a reverse mortgage is a savvy financial tool that allows you to leverage the equity in your home, all while you live in it and retain ownership.* But if your heirs aren’t familiar with this type of loan and how it may affect their expectations of a financial legacy, it’s important to start the conversation sooner rather than later. Setting the record straight Living on a retirement budget can be very limiting, especially if you’re struggling to make ends meet or forgoing many of the dreams you had about your post-work lifestyle. Your adult children may even feel burdened, caught between trying to assist financially while supporting their own growing family. A reverse mortgage turns the equity you’ve built over the years into funds you can access as monthly payments, a lump sum or line of credit if and when you need it**. And unlike traditional home loans, reverse mortgages don’t require monthly payments. You can pay as little or as much as you want, when you want, as long as you stay current with your loan obligations including property taxes, maintenance and insurance. The loan only becomes due and payable when the last borrower, or eligible non-borrowing spouse (where applicable) passes away. At that point, your heirs may still inherit your home, but they will have to pay back the loan balance if they want to keep

it; this includes the amount of funds you used, plus accrued interest and fees. They can also sell the home to repay the loan. Once it’s repaid, they retain any remaining equity. The good news for heirs is that reverse mortgages are "nonrecourse" loans. That means if the loan amount exceeds the home's value, they won’t owe more than the value of the property when the loan is repaid. The importance of managing expectations When heirs are familiar with the ins and out of a reverse mortgage, they’ll know what to anticipate when the time comes. And keep in mind, a home is not the only inheritance you may leave behind. Aside from other belongings and investments they may inherit, your legacy is not only about your finances, but also the wisdom, experiences and memories you’re leaving the ones you love. Whether you’re newly retired or looking ahead, Reverse Mortgage Funding (RMF) can help address your reverse mortgage questions and concerns. Call us today at (888) 277-1567 to set up an appointment with an experienced reverse mortgage specialist at your convenience. *As with any mortgage, you must meet your loan obligations, keeping current with property taxes, insurance and keeping your home in good condition. **Borrowers who elect a fixed rate will receive a single disbursement lump sum payment. Other payment options are available only for adjustable rate mortgages. In certain states, RMF's EE loan provides a fixed-rate term payment option.

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How to Make Your Home a Safe Haven in Retirement

June is designated as National Homeownership Month, shining a spotlight on the American dream of owning a home. The Department of Housing and Urban Development continues to focus on helping in- dividuals and families purchase and maintain their homes while upholding its mission: to give everyone the chance to live with dignity, safety and hope wherever they call home. This is especially important for 65- to 70-year-olds, who have the highest homeownership rate among all age groups at 78%. This demographic often faces increased health, safety and financial challenges as they age. Yet research shows that 77% of older adults want to remain at home as they grow older. June is also National Safety Month, so there’s never been a better time to focus on home safety mea- sures, big and small, for older homeowners to live comfortably and with peace of mind. Take a proactive approach Don’t wait until you fall or injure yourself to make necessary changes around your home. These easy tips can help protect your health and safety now. • Ensure that stairways and steps are free of clutter and handrails are secure. • Safeguard throw rugs with rubber backings or double-sided tape. • Install adequate lighting around your front door and stairs. • Make sure frequently used items are within easy reach, not stored on a high shelf. • Add accessible seating, like an entryway bench, to make putting on/taking off shoes easier.

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When a quick fix won’t cut it… Not every potential safety hazard can be resolved with a quick repair. For example, you may need a more extensive home remodel to make your home work for you, such as: • Widening doorways • Moving the primary bedroom to the first floor • Installing a walk-in shower Unfortunately, it can be difficult for many older homeowners to afford a substantial invest- ment in renovations. A reverse mortgage loan is a lesser-known financing option, offering a new source of funds to make critical home improvements and help fund your retirement. A safe option to ensure home safety Homeowners age 62+ collectively hold about $9.2 trillion in home equity. A reverse mortgage allows you to leverage that equity while retaining full ownership of your home with your name on the title. Funds may be accessed as a lump sum, monthly payments or a line of credit* that grows over time** for if and when you need it. As with any mortgage, you must meet loan obligations, including keeping current with property taxes, insurance, and maintenance *Borrowers who elect a fixed rate will receive a single disbursement lump sum payment. Other payment options are available only for adjustable rate mortgages. In certain states, RMF's EE loan provides a fixed-rate term payment option. • Building an entry ramp • Redesigning a kitchen **If part of your loan is held in a line of credit upon which you may draw, then the unused portion of the line of credit will grow in size each month. The growth rate is equal to the sum of the interest rate plus the annual mortgage insurance premium rate being charged on your loan.

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Retirement Living: Is Your Current Home Your Forever Home?

Retirement is often associated with big changes — from your daily routine to your finances to where you decide to live out your best years. It may spark the desire to relocate for a fresh start in a home that better fits your changing needs. When choosing where you want to live in retirement, there are many factors to weigh: • Should you remain home, move to a condo, try out life in a 55+ community? • Do you plan to drive? • What activities might you participate in? • How will you maintain social connections? Keep in mind your long-term plans, budget, proximity to family and even access to familiar healthcare providers when considering your options: • Move in with adult children/extended family. If you’re looking to reduce your retirement costs and be close to family, a cohabitating situation can be mutually beneficial for all parties. For example, retirees can help with childcare for busy working parents while staving off loneliness and depression as part of an active household. The downside, being part of your family’s daily routine could infringe on your own personal space and independence. It may be difficult to create boundaries, putting a burden on your personal relationships.

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• Purchase a home in an independent living community. Whether it’s a retirement village, an active adult community or a 55+ development, this housing option offers retirees the chance to live on their own with access to convenient amenities and services to make daily life easier. Everything from floor plans to activities and social events cater to older homeowners within the community. But the convenience could come with a hefty price tag. Depending on the location, you can pay anywhere from $1,500 to $6,000 a month, plus additional costs for social activities. • Relocate to an assisted living facility. This type of property may be best suited for retirees who require help with daily tasks. Staff is available to assist with personal hygiene, eating, getting dressed, housekeeping and medication reminders. Residents usually reside in individual apartments, but communal spaces offer meals and social activities. But is it affordable? Over 800,000 Americans currently reside in assisted living facilities, paying on average $54,000 a year in the United States. • Downsize. Moving into a smaller dwelling can help save on mortgage costs, utilities, property taxes and more. It’s less space to clean and maintain — which can get more challenging with age. But an apartment or condo also offers less space for your family to visit or to finally build the breakfast room or the backyard garden you’ve been dreaming of during retirement. • Age in place. >Page 1 Page 2 Page 3 Page 4 Page 5 Page 6 Page 7 Page 8 Page 9 Page 10 Page 11 Page 12 Page 13 Page 14

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