Equity Elite Buyers Guide

For example: Meet Carole and David, age 64. Since their children left home after college, Carole and David have been considering moving from their large, four-bedroom house to a more manageable home in a planned community. But they don’t want to add the burden of a monthly mortgage payment or to pay all cash up-front. Instead, they use just a portion of the cash from their former house—which sold for $625,000—and borrow additional funds from a reverse mortgage for purchase to buy their new $450,000 home. By utilizing either the HECM for Purchase or Equity Elite ®

for Purchase products, they can preserve more than $350,000 for savings and investments, eliminate monthly mortgage payments,* and still have the flexibility to buy the home they really want .

All Cash

Traditional Mortgage †

HECM for Purchase ‡

Equity Elite ® for Purchase ||

$450,000

$135,000

$260,595

Down Payment

$274,795

Not applicable

4.5% (30 Yrs.)

4.43%

Fixed Interest Rate

7.00%

Monthly Payment (P&I) Monthly HOA Fees Monthly Taxes & Insurance Total Monthly Payments

Not applicable

$1,596

Not Required*

Not Required*

$300

$300

$300

$300

$650

$650

$650

$650

$950

$2,546

$950

$950

*As with any mortgage, you must meet your loan obligations, keeping current with property taxes, insurance, and maintenance. † For illustrative purposes only. Estimates shown are based on a Colorado property and a 30-Year Fixed-Rate mortgage with 0 Points at a 4.5% fixed rate (4.5%APR). Rates fromBankrate.com as of 12/3/2019. ‡ The example shown is for illustrative purposes only. The estimates shown are based on a Colorado property and the HECMFixed-Rate product as of November 2019. Assumptions include a purchase price of $450,000 and a 64-year-old borrower. The interest rate is 4.43% (5.98% annual percentage rate). In this example, closing costs include an origination fee of $2,900, third-party closing costs of $14,695 depending on purchase price or appraised value, and an up-front FHAMortgage Insurance Premium of 2% depending on purchase price or appraised value. Interest rates and funds available may change daily without notice. || The example shown is for illustrative purposes only. The estimates shown are based on a Colorado property and the Equity Elite ® Fixed-Rate product as of November 2019. Assumptions include a purchase price of $450,000 and a 64-year-old borrower. The interest rate is 7.0% (7.84% annual percentage rate). In this example, closing costs include an origination fee of $4,500, third-party closing costs of $5,695 depending on purchase price or appraised value. Interest rates and funds available may change daily without notice.

To learn more, call your local RMF loan specialist | 8

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