Enhancing your retirement on your way to a better life!

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1 Enhancing your retirement on your way to a better life! Find out what a HECM Reverse Mortgage is and how you may qualify today!

2 WHAT IS A HECM REVERSE MORTGAGE? Home Equity Conversion Mortgages (HECM), also known as Reverse Mortgages were first introduced by the Federal Housing Administration in 1989 to help Americans 62 and older convert a portion of their home equity into tax-free money₁. They are insured by the Federal Housing Administration (FHA) and allow seniors to stay in their homes and achieve financial security. Since its inception in 1989 over 1,000,000 HECM Reverse Mortgages have been insured by FHA HOW DO THEY WORK? A reverse mortgage loan allows you to turn some of the equity in your home into cash, a credit line or monthly income or a combination of all of these options in order to enhance your lifestyle in whatever manner you choose. You continue to live in your home; you retain title and ownership of your home and you will not be required to make any monthly principal or interest mortgage payments₂ during the loan term. However, if you desire, you have the option to make payments. Instead of making monthly principal and interest payments, the loan balance is repaid when the last homeowner leaves the property. Page 1 YOUR GUIDE TO REVERSE MORTGAGES The amount available to you is based on the age of the youngest homeowner, current interest rates and the appraised value of your home.

3 WHAT ARE THE QUALIFICATIONS FOR A REVERSE MORTGAGE? At least one homeowner must be 62 or older (a non-borrowing spouse may be younger ask for details) Live in your home it must be your primary residence You must either own the home outright or have sufficient equity built up You must meet the financial requirements of the HECM program called Financial Assessment Have financial resources to make timely payments of the property taxes, homeowner s insurance and association fees (HOA) if applicable The home must be single family home, a 2-4 unit home with the owner occupying one unit, a HUD approved condominium or manufactured home that meets FHA requirements Cannot be delinquent on any Federal Debt, taxes or student loans You must participate in a HUD approved counseling session WHAT IS A NON-BORROWING SPOUSE? Eligible and ineligible? A non-borrowing spouse occurs when one of the owners of the home has not yet reached the age of 62. An Eligible Non-Borrowing Spouse is one who lives in the home. An Ineligible Non-Borrowing Spouse is one who does not live in the home (often occurs when owners are separated but not yet divorced). New rules implemented by FHA provide Eligible Non- Borrowing Spouses under the age of 62 certain rights to remain in the property after the qualifying borrower has passed away and provides new loan limits in these instances. YOUR GUIDE TO REVERSE MORTGAGES Page 2

4 HOW DO SENIORS USE THEIR REVERSE MORTGAGE? The proceeds from a reverse mortgage may be used for almost any purpose: Payoff an existing mortgage to eliminate monthly mortgage payments₂ Make retirement savings last longer Make it easier to retire Supplement your retirement income with monthly payments or periodic draws from the line of credit Consolidate other debt or purchase a car, boat or RV Use the standby HECM increasing line of credit to preserve investment accounts, to build a safety net for unplanned emergencies, home repairs, healthcare expenses or for any other need. Subsidize expenses, such as caregiving and home modifications HOW MUCH WILL WE RECEIVE FROM OUR REVERSE MORTGAGE? The amount available varies based on: The age of the youngest borrower The expected interest rate at the time of closing The amount owed on your home The value of your property The HECM program you select Page 3 YOUR GUIDE TO REVERSE MORTGAGES

5 WHY SHOULD WE USE MOHAVE STATE BANK / COUNTRY BANK? We are a local Arizona State Chartered Community Bank established in 1991 working to serve Seniors with our Reverse Mortgage offerings We are FDIC regulated # We have been originating Reverse Mortgages since 2007 We are an Approved FHA lender We have a Certified Reverse Mortgage Professional on our staff the highest designation you can earn from the National Reverse Mortgage Lenders Association (NRMLA). There are only 7 in Arizona and 126 in the US as of September All of our Reverse Mortgage Specialists have 9 or more years experience in originating Reverse Mortgages! YOUR GUIDE TO REVERSE MORTGAGES Page 4

6 WHAT ARE THE OPTIONS FOR OUR HEIRS WHEN WE PASS AWAY? Heirs may elect to sell the home and any net equity would belong to them They may elect to keep the home by paying off the balance owed on the Reverse Mortgage The amount due at payoff will be the lesser of the Reverse Mortgage loan balance or 95% of the FHA appraised market value If more is owed on the home than what it is worth the heirs or estate can just walk away there is no recourse to any other assets of the borrower(s) WHEN IS THE LOAN DUE AND PAYABLE? The loan is due upon the occurrence of any of the following. The home is sold The last surviving borrower passes away The home is vacated or abandoned for 12 months Failure to pay the property taxes, homeowners insurance or HOA fees (if applicable) If you fail to maintain the home in the same condition as when it was appraised There is no prepayment penalty; the loan can be paid off at anytime with no penalty Page 5 YOUR GUIDE TO REVERSE MORTGAGES

7 WHAT ARE THE ADVANTAGES OF A REVERSE MORTGAGE? Keep your home you retain complete ownership of the home and the title remains in your name No monthly principal and interest payments₂ are required Funds you use are tax free₁ with no restrictions on how you use them Heirs may inherit any remaining equity in the property and are allowed to purchase the home at the lesser of what is owed or 95% of the FHA appraised value CAN WE PURCHASE A HOME WITH A REVERSE MORTGAGE? Yes, you can! Ask your Mohave State Bank/Country Bank Reverse Mortgage Specialist for the details and qualification requirements. WHAT ARE THE COSTS INVOLVED? We will provide you with a written estimate of all costs based on your personal circumstances. See your Mohave State Bank/ Country Bank Reverse Mortgage Specialist YOUR GUIDE TO REVERSE MORTGAGES Page 6

8 For more information, a confidential appointment and a personalized quote please contact your local Mohave State Bank / Country Bank Reverse Mortgage Specialist. Mohave County- Bullhead City Highway 95 - Ph. (928) Kingman Hualapai Mtn Rd - Ph. (928) Kingman Stockton Hill Rd - Ph. (928) Lake Havasu City McCulloch Blvd - Ph. (928) Lake Havasu City N. Lake Havasu Ave - Ph. (928) Yavapai County- Cottonwood E. State Route 89A - Ph. (928) Prescott N Cortez - Ph. (928) Prescott Gail Gardner Way - Ph (928) Prescott Valley N Glassford Hill Rd - Ph. (928) MSB NMLS# This information is not from HUD or FHA and was not approved by HUD or a government agency. ₁ For tax issues or questions you should consult a qualified tax advisor ₂ Property taxes, homeowner s insurance, HOA fees and any other fees associated with the property must be paid timely and in accordance with their respective schedule