CHILDREN & CAREGIVERS A FAMILY GUIDE TO REVERSE MORTGAGES

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1 NMLS #7230 CHILDREN & CAREGIVERS A FAMILY GUIDE TO REVERSE MORTGAGES

2 89% The percentage of adult children who want their parents to pay their bills and not worry about leaving an inheritance. *Based on national survey conducted by NRMLA in Dear Friends, Today, many of us are facing challenges that we did not envision, new challenges that affect our lives and our financial security. The decisions we must make require a level of insight, knowledge, and empathy far more complex than previous generations. Seniors encounter a wide range of situations that younger loved ones may not understand. These include living on a fixed income as inflation grows, more frequent medical bills, and having to let go of the physical and financial independence they once had. Many of us failed to anticipate lifespans that can be a decade or more longer than expected. For children of seniors, the position can be equally difficult. Baby boomers may be struggling financially to support both their growing children and their aging parents at the same time. To our valued customers, We give you this GUARANTEE: always treat you with dignity and respect. In many cases, parents prefer to remain in the comfort of their own homes as they age, but accommodating these desires with home modifications and possibly quality inhome care can be a serious financial drain on families. HECM loans, (home equity conversion mortgages) also known as reverse mortgages, are available to help older Americans access the wealth in their homes in order to alleviate much of the stress these challenges create. provide patient and personal service. walk you through the process, start to finish, and ensure you understand every step of the way. And we will ALWAYS remember your NAME.

3 DECIDING TOGETHER Senior Security Advisors encourages loved ones to get involved and go through the loan process alongside family members, so that everyone has a complete understanding of the program. We understand that getting a reverse mortgage is a big financial decision, so here are some tips to assist you in your family s discussion about the loan: TIP 1 Be open and honest about finances. Ask your parents to be truthful about both their current situation and their projected future situation. Are they living a comfortable retirement? Can they afford to maintain their current lifestyle for 10 more years? If not, can you afford to supplement their income? Will you be able to afford medical bills or in-home care in their later years? TIP 2 Be sincere about your family s goals. Some seniors have enough income to get by, but want more from their retirement. Do they want to travel, modify their home to maintain their independence or just have the security of money in the bank? Your parents have worked hard and deserve a fulfilling retirement how can that be achieved? TIP 3 Seek out a licensed professional to discuss your family s situation. There are many different sources out there that share information about reverse mortgages that are biased, dated or simply not true. Licensed professionals are trained to help you explore your parent s financial situation, give you up-to-date facts and walk you through the process every step of the way. HOW DOES IT WORK A reverse mortgage is a type of home loan that allows your parents, grandparents or loved ones to turn the equity in their home into cash to better their retirement lifestyle in whatever way they choose. Reverse mortgage borrowers can purchase a new home or continue to live in their present homes, retaining full ownership and are not required to make any monthly mortgage payments for the loan period. In lieu of monthly repayments, the loan may be repaid in one lump sum when the last borrower leaves the home. The borrower is, as always, responsible for continued property tax and insurance payments as well as basic home maintenance and compliance with other loan terms. After the loan type is chosen and after any existing mortgage is paid off, borrowers can choose to receive any additional loan proceeds in several different ways: A lump sum at closing and balance on the 1 year anniversary Monthly payments for either a fixed amount of time or for the rest of their lives A line of credit Or a combination of all of the above HECM Options

4 TWO PROGRAMS There are two kinds of reverse mortgages available: the HECM Standard and the HECM for Purchase. Our staff at Senior Security Advisors can help seniors decide which one is right for them. Some want a more manageable or lower maintenance residence. A HECM for Purchase loan (H4P) is attractive for qualified borrowers who wish to sell an existing home that may not fit their lifestyle anymore, perhaps its too large, too much upkeep, or in a remote area. Selling a home and taking a Reverse for purchase (H4P) to buy a new primary residence without having to make monthly mortgage payments going forward is an increasingly popular option. SOME BENEFITS INCLUDE: Relocating to a more suitable neighborhood, perhaps with better services and transportation options or nearer to family and friends. Creating a better environment i.e.: Living on 1 floor Vs 2, Senior friendly features, appliances, etc. Have a lower maintenance property, often a Condominium or Town House community with less responsibility for upkeep. The Standard HECM reverse mortgage offers retirees the opportunity to live safely and comfortably in their own homes, on their own terms. Many want to stay in their existing home. Aging in place improves and maintains a senior s quality of life by enabling them to: Maintain their familiar environment Preserve their community connection Feel independent Remain close to family and friends Continue to live in a home that may have emotional value to them or their children. COMMON QUESTIONS What happens to my inheritance? Borrowers may will the home to loved ones as they wish, and heirs may still choose to sell or keep it after repaying the loan. There are also various methods that borrowers or heirs can use to repay the loan when it is due. No other estate assets can be accessed to repay the loan. Does the bank own my parent s home? No. Reverse mortgage borrowers retain full ownership of their homes. They are not relinquishing title or ownership using a reverse mortgage, but borrowing against the value of the home. How do we repay the loan and how much will we owe? The loan is repaid once the last borrower leaves the home. If the home is sold, the loan (including interest and fees) is repaid, and any remaining equity goes to the heirs. Of course, heirs can also choose to keep the home and repay the loan through the use of a traditional mortgage or by refinancing. How is a reverse mortgage different from other home loans? Due to income and credit requirements, some seniors with fixed incomes cannot qualify for most home loans including Home Equity Loans, but they may qualify for a reverse mortgage. Traditional home loans also require regular monthly payments, which may create even further financial stress, whereas repayment of a reverse mortgage is deferred to when the loan is due. Reverse mortgages are also nonrecourse, FHA-insured loans, which offers extra protection for senior borrowers and their families. Helping your loved one remain in the comfort of their home can be the greatest gift you could give them. Reach out to a Senior Security Advisors professional to learn about the various options available and make the right choice for your family.

5 YOU HAVE THINGS TO DO, A LIFE TO LIVE! Now is a great time to enjoy it! We may have financial options that can help you be You! We offer Home Equity Conversion Mortgage programs for homeowners 62+ Our team is solely focused on Reverse Mortgages! Our mission is to provide outstanding personal and professional service, educating our clients and encouraging informed decision making. MONDAY - SATURDAY 9am 6pm Eastern Standard Time or tell us when to contact you at /callme.html SCAN TO VISIT OUR WEBSITE FOR MORE INFORMATION We are Senior Security Advisors, a different type of Reverse Mortgage Lender! United Northern Mortgage Bankers Limited, DBAs: Senior Security Home Advantage, Senior Security Advisors, 3601 Hempstead Turnpike, Suite 300, Levittown, NY Licensed Mortgage Banker NYS Department of Financial Services License #B NMLS # 7230 AL Consumer Credit license #21761 CO Mortgage Company Registration CA DBO Finance Lenders Law license # 603K800 Licensed by the Dept. of Business Oversight under the California Residential Mortgage Lending Act and the Finance Lenders Law CT Dept of Banking Mortgage Lender license #20372 FL Dept of Financial Institutions Mortgage Lender license #MLD273 GA Dept of Banking and Finance Mortgage Lenders license #39919 MD Mortgage Lender license MA Div of Banks and Loan Agencies Mortgage Lender & Mortgage Broker license #MC7230 NJ Dept of Banking and Insurance Mortgage Lender license #L NC Commissioner of Banks Mortgage Lender license #L PA Dept of Banking Mortgage Lender license #20887 SC State Board of Financial Institutions TN Mortgage Lender license #MLS7230 TN Mortgage license # TX - SML Mortgage Banker Registration WA Consumer Loan Company license #CL-7230 Direct Endorsed FHA Lender.United Northern Mortgage Bankers, Ltd is not affiliated with or acting on behalf of or at the direction of FHA or the Federal Government.