62+ Mortgage

TM

Homebuyers Guide Discover how to buy your dream home with no monthly mortgage payments.

Borrower must occupy home as primary residence and remain current on property taxes, homeowners insurance, home maintenance costs, and any HOA fees.

The Big Question: If you’re not living in your dream home, what’s stopping you?

Why you should learn about the 62+ Loan™.

Imagine moving into a new neighborhood close to friends and family, with walking paths, a clubhouse, and neighbors just like you, all while retaining a large portion of your life savings. If you’re dreaming about a new home with modern design, amenities, and low maintenance, then you owe it to yourself to learn about a powerful financing option to purchase your next home, that homebuyers, like you, have been using since 2009: The 62+ Loan™. With this option, you can increase your purchasing power and significantly reduce your out-of-pocket expenses. The 62+ Loan™ comes at a time when a lot of homebuyers are trying to protect their nest egg and boost monthly income. If you’ve been wanting to move into a new or newer home that better meets your lifestyle plan, then your time has finally arrived! If you or your spouse is at least 62, then the The 62+ Loan™, which is FHA insured, can help you purchase the home you really want without depleting a

large portion of your life savings—and save you thousands of dollars you would have otherwise lost in the process with monthly mortgage payments. The 62+ Loan™ is unlike a traditional home mortgage; monthly mortgage payments are deferred and the loan balance increases over time. As is true of all loans, you must satisfy loan terms, which includes items like home maintenance, property taxes, homeowners insurance, and any HOA fees. The home must also be your primary residence. However, since this loan is insured by the FHA, neither you nor your heirs have any personal liability for the repayment of the debt.* So what does this really mean? It’s actually very simple.

Let’s say you use The 62+ Loan™ to purchase your dream home and decide to move in 10 years. When you sell your home, you’ll receive 100% of the net proceeds after paying off the loan balance at the *If your heirs wish to retain the property after your death, they may do so by paying the lesser of the reverse mortgage balance or 95% of the appraised value of the home.

time of sale. This is exactly how a traditional mortgage works. So the primary benefit to you during your living years is that you don’t tie up all your savings by paying cash, and as long as you continue to meet loan terms, you increase your monthly cash flow by not having a monthly mortgage payment.

The Ultimate Leverage This is about taking a single dollar from your life savings and putting it to work so that your lifestyle improves dramatically. Let’s take a look at how this is possible using a special matrix, because the concept is much easier demonstrated with pictures instead of words. The 62+ Loan™ is based on three primary variables: age, interest rate, and the purchase price of the home. Using the matrix on the next page, simply match your current age, or round to the closest one listed along the top of the matrix. Next, find the expected purchase price of your new home listed alongside the left-hand side of the matrix and round to the nearest price. As an example, let’s use a purchase price of $350,000 and an age of 70. You can see that you would only be required to bring a down payment of $201,033 to closing.

The borrower must occupy the home as primary residence and remain current on property taxes, homeowners insurance, home maintenance costs, and any HOA fees.

The HECM for Purchase Program may not be the best fit for everyone so we encourage you to consider all options prior to purchasing a home.

Down Payment Matrix Age of youngest borrower

PURCHASE PRICE

62

65

70

75

80

85

$150,000

$96,439

$93,439

$88,189

$83,989

$77,689

$69,139

$200,000

$127,289 $123,289 $116,289 $110,689 $102,289

$90,889

$250,000

$158,583 $153,139 $144,389 $137,389 $126,889 $112,639

$300,000

$188,989 $182,989 $172,489 $164,089 $151,489 $134,389

$350,000

$219,839 $212,839 $201,033 $190,789 $176,089 $156,139

$400,000

$250,689 $242,689 $228,689 $217,489 $200,689 $177,889

$450,000

$281,539 $272,539 $256,789 $244,189 $225,289 $199,639

$500,000

$312,389 $302,389 $284,889 $270,889 $249,889 $221,389

$600,000

$374,089 $362,089 $341,089 $324,289 $299,089 $264,889 DOWN PAYMENT

These calculations are based on a variable rate HECM with a 2.875% margin and an initial interest rate of 5.385% as of June 6, 2019. APR (Annual Percentage Rate) range: 6.390% - 7.501%. Loan charges include origination fees, mortgage insurance premiums, and settlement costs, which are to be determined. Some of these fees may be financed into the loan. Interest rates and funds available may change without notice and not be available at the time of loan commitment. Prices subject to change.

Please speak with your licensed loan officer to receive current rates including fixed rate options.

55 Places Mortgage, LLC dba 55places Mortgage. NMLS ID 1845364. 11515 Burnham Drive NW, Suite 203 Gig Harbor, WA 98332. These materials are not from HUD or FHA and the document was not approved by HUD, FHA, or any Government Agency. Arizona Mortgage Broker License #MB-1002005. Loans made or arranged pursuant to a California Finance Lender Law license, 60DBO99073. Colorado Mortgage Company Registration NMLS #1845364. Delaware Broker License #028144. Florida Mortgage Broker License #MBR3078. Illinois Residential Mortgage License #MB.6761430. Maryland Mortgage Lender License #23967. New Jersey Residential Mortgage Broker License #1845364.

Pennsylvania Mortgage Broker License #71234. South Carolina-DCA Mortgage Broker License. Tennessee Mortgage License #185054. Texas Mortgage Company License #1845364. Virginia Mortgage Broker License, NMLS ID #1845364, WA Consumer Loan Company License: CL-1845364 The 62+ loan™ is a reverse mortgage product (Home Equity Conversion Mortgage; must be 62 or older to qualify). Reverse mortgage proceeds are involved. A reverse mortgage borrower must occupy the home as primary residence and remain current on property taxes, homeowners insurance, home maintenance costs, and any HOA fees. Subject to credit approval. NMLS Consumer Access: www.nmlsconsumeraccess.org.