Let your house support YOU now It’s On the House !

The Reverse Mortgage Timeline 1970 1988 1996 The National Council of the Aging, The Veterans Administration Division of Housing and privately held senior advocacy groups begin feasibility studies to determine the merits of a federally insured Home Equity Conversion Mortgage. The President of the United States signs into law “The Federal Home Equity Conversion Mortgage Insurance Plan” offering Senior Americans the first FHA insured HECM mortgage. FNMA (FannieMae) Creates the Home Keeper” Reverse Mortgage. Wall Street Journal states that they anticipate 16 million households to apply for reverse mortgages in 2010.

Informational Resources AARP FannieMae American Bar Association

Who is American Reverse Mortgage? #6 Reverse Mortgage Company in US (in 14 states) #120 On Entrepreneur Magazine’s HOT 500 List #1230 On INC Magazine’s Top 5000 List 100% A Reverse Mortgage Company Only 2006 $8.4 million in Revenue 2,418 Employees 2006

American Reverse Mortgage Credentials

How Are Some Reverse Mortgages Used? Improve Current Standard of Living Help Family Members and Loved Ones Stop Making House Payments Help with Medical and Prescription Bills Set up a College Fund for a Grandchild Additions and Repairs to the Home Fulfill Lifelong Travel Dreams Replace Income From a Deceased Spouse Donate to charity

Improve Current Standard of Living

Help Family Members and Loved Ones

Stop Making House Payments

Help with Medical and Prescription Bills

Set up a College Fund for a Grandchild

Additions and Repairs to the Home

Fulfill Lifelong Travel Dreams

Replace Income From a Deceased Spouse

Donate to charity

Financial Peace of Mind

What Do You Think About When You Hear the Word “MONEY”? I’ve got too much, I need to give some away. If I had more I could do more of the things that I enjoy and get the things that I need. or

I’ve got too much, I need to give some away.

If I had more I could do more of the things that I enjoy and get the things that I need.

What would you do differently if you had more money?

Senior Concerns The cost of day-to-day living is increasing Most Seniors find themselves on a fixed income. If their income grows, it is not keeping up with their expenses or inflation You want more than just keeping up― You want OPTIONS .

The cost of day-to-day living is increasing

Most Seniors find themselves on a fixed income.

If their income grows, it is not keeping up with their expenses or inflation

For Most People The Family Homestead Is Their Largest Lifetime Investment.

Many Seniors Have Their Mortgage Paid Off or Almost Paid Off This gives them “ Equity ” Equity = Tied Up Money

Unfortunately Many Seniors Are House Rich But CA$H POOR!

# 1 You could sell your home “ Downsize” ? 2 Main Ways To Get Cash From Your Home

#2 Get a Home Equity Loan Make Payments Pass Credit Check Risk Foreclosure of Your Home

Make Payments

Pass Credit Check

Risk Foreclosure of Your Home

Now, There’s a 3rd Way... Home Equity Conversion Mortgage “ HECM ” It’s a home equity loan that YOU NEVER PAY BACK As Long As You Live & Keep Your Home As Your Primary Residence

How Does The Reverse Mortgage Differ From A Traditional Mortgage? There are NO PAYMENTS to make, therefore You CANNOT lose your home for not making the payments There are NO Income Requirements There are NO Credit Requirements

There are NO PAYMENTS to make, therefore

You CANNOT lose your home for not making the payments

There are NO Income Requirements

There are NO Credit Requirements

How It Works Your Cash goes DOWN as your equity goes UP Your Cash goes UP as your equity goes DOWN Your cash Your cash “ FORWARD” Mortgage “ REVERSE” Mortgage EQUITY

6% =$7,500 $125,000 - $50,000 = $75,000 When we remove funds from our investments we reduce the INCOME from our investments 6% = $4,500

Reverse Mortgage Funds Benefits $125,000 - $50,000 $125,000 6% = $7,500 6% = $7,500 The house continues to appreciate at its original value Income from investments remains untouched and intact

The house continues to appreciate at its original value

Income from investments remains untouched and intact

You ALWAYS retain the title to the home The loan is HUD designed and FHA insured Funds from a reverse mortgage are NON- TAXABLE Sell the home at any time with NO pre-payment penalty Money can be received in various ways and used for any purpose NO DEBT is ever passed to your estate ALL RETAINED EQUITY is paid to your heirs Reverse Mortgage Review

You ALWAYS retain the title to the home

The loan is HUD designed and FHA insured

Funds from a reverse mortgage are NON- TAXABLE

Sell the home at any time with NO pre-payment penalty

Money can be received in various ways and used for any purpose

NO DEBT is ever passed to your estate

ALL RETAINED EQUITY is paid to your heirs

Reverse Mortgages Are Safe It is a Non-Recourse Mortgage: The final amount of the loan WILL NEVER exceed the home value! The Lender NEVER Owns Your Home Your Heirs are Protected, Too!

Insured by FHA The Federal Housing Administration This Protects You and Your Heirs

Who Is Eligible For a HECM Reverse Mortgage? Homeowners at least age 62 Live in your home as your primary residence

Homeowners at least age 62

Live in your home as your primary residence

Can I Ever Be Forced Out of My Home? NO ! You will only be required to: 1. Live In YOUR Home 2. Keep The Home Adequately Insured 3. Pay The Property Taxes 4. Maintain The Property

Will The Reverse Mortgage Affect My Taxes Or Social Security ? NO ! Money Received From a Reverse Mortgage Is... Tax Free !

How Much Money Can I Receive? Age of the Youngest Borrower The FHA Appraised Value of the Home The Current Interest Rate The Amount You Receive is Based on Three Factors:

Age of the Youngest Borrower

The FHA Appraised Value of the Home

The Current Interest Rate

How Can I Receive My Money ? Lump sum Regular monthly payments Growing Line of Credit A Combination of Above

Lump sum

Regular monthly payments

Growing Line of Credit

A Combination of Above

If You’re Thinking… “This Sounds Great” You are RIGHT