Details for AAG Reverse Mortgage IO 256218


Why Haven’t Senior
Homeowners Been
Told These Facts?
Keep reading if you own a home in
the U.S. and were born before 1957.
It’s a well-known fact that for
many senior citizens in the U.S.
their home is their single biggest
asset, often accounting for more
than 50% of their total net worth.
Yet, according to new statistics
from the mortgage industry,
senior homeowners in the U.S.
are now sitting on more than 6.1
trillion dollars of unused home
equity.1 With people now living
longer than ever before and home
prices back up again, ignoring this
“hidden wealth” may prove to be
short sighted.
All things considered, it’s
not surprising that more than a
million homeowners have already
used a government-insured Home
Equity Conversion Mortgage
or “HECM” loan to turn their
home equity into extra cash for
However, today, there are still
millions of eligible homeowners
who could benefit from this
FHA-insured loan but may simply
not be aware of this “retirement
Some homeowners think
HECM loans sound “too good
to be true.” After all, you get the
cash you need out of your home
but you have no more monthly
mortgage payments.

It’s a fact: no monthly mortgage
payments are required with a
government-insured HECM
loan;2 however the homeowners
are still responsible for paying for
the maintenance of their home,
property taxes, homeowner’s
insurance and, if required, their
HOA fees.
Another fact many are not
aware of is that HECM reverse
mortgages first took hold when
President Reagan signed the FHA
Reverse Mortgage Bill into law 29
years ago in order to help senior
citizens remain in their homes.
Today, HECM loans are simply
an effective way for homeowners
62 and older to get the extra cash
they need to enjoy retirement.
Although today’s HECM loans
have been improved to provide
even greater financial protection
for homeowners, there are still
many misconceptions.
For example, a lot of people
mistakenly believe the home must
be paid off in full in order to
qualify for a HECM loan, which
is not the case. In fact, one key
advantage of a HECM is that

FACT: In 1988, President Reagan
signed an FHA bill that put HECM
loans into law.

the proceeds will first be used to
pay off any existing liens on the
property, which frees up cash flow,
a huge blessing for seniors living
on a fixed income. Unfortunately,
many senior homeowners who
might be better off with HECM
loan don’t even bother to get more
information because of rumors
they’ve heard.
That’s a shame because HECM
loans are helping many senior
homeowners live a better life.
In fact, a recent survey by
American Advisors Group (AAG),
the nation’s number one HECM
lender, found that over 90% of their
clients are satisfied with their loans.
While these special loans are
not for everyone, they can be a real
lifesaver for senior homeowners.
The cash from a HECM loan
can be used for any purpose. Many
people use the money to save on
interest charges by paying off
credit cards or other high-interest
loans. Other common uses include
making home improvements,
paying off medical bills or helping
other family members. Some
people simply need the extra cash
for everyday expenses while others
are now using it as a “safety net” for
financial emergencies.
If you’re a homeowner age 62
or older, you owe it to yourself to
learn more so that you can make an
informed decision. Homeowners
who are interested in learning
more can request a free 2019
HECM loan Information Kit and
free Educational DVD by calling
American Advisors Group tollfree at 1-800-791-7830.
At no cost or obligation, the
professionals at AAG can help
you find out if you qualify and also
answer common questions such as:
1. What’s the government’s role?
2. How much money might I get?
3. Who owns the home after I
take out a HECM loan?
You may be pleasantly surprised
by what you discover when you call
AAG for more information today.

A reverse mortgage increases the principal mortgage loan amount and decreases home equity (it is a
negative amortization loan). AAG works with other lenders and financial institutions that offer reverse
mortgages. To process your request for a reverse mortgage, AAG may forward your contact information to
such lenders for your consideration of reverse mortgage programs that they offer.
When the loan is due and payable, some or all of the equity in the property no longer belongs to borrowers,
who may need to sell the home or otherwise repay the loan with interest from other proceeds. AAG charges
an origination fee, mortgage insurance premium, closing costs and servicing fees (added to the balance of
the loan). The balance of the loan grows over time and AAG charges interest on the balance. Not all interest
on a reverse mortgage loan is tax-deductible and to the extent that it is, such deduction is not available until
the loan is partially or fully repaid. Consult your tax advisor.
Borrowers are responsible for paying property taxes, homeowner’s insurance, maintenance, and related
(which may be substantial). We do not establish an escrow account for disbursements of these payments.
A set-aside account can be set up to pay taxes and insurance and may be required in some cases.
Borrowers must occupy home as their primary residence and pay for ongoing maintenance; otherwise
the loan becomes due and payable. The loan also becomes due and payable (and the property may be
subject to a tax lien, other encumbrance, or foreclosure) when the last borrower, or eligible non-borrowing
surviving spouse, dies, sells the home, permanently moves out, defaults on taxes, insurance payments, or
maintenance, or does not otherwise comply with the loan terms. V2018.09.19_OR
NMLS# 9392 ( American Advisors Group (AAG) is headquartered at 3800
W. Chapman Ave., 3rd & 7th Floors, Orange CA, 92868. (Licensed Mortgage Banker-NYS Department of
Financial Services; American Advisors Group operates as American Advisors Group, Inc. in New York)

These materials are not from HUD or FHA and were not approved by HUD or a government agency


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