Unlocking
Wealth
TM
© Copyright Pending 2009
1
Overview
 The
problem facing seniors
 Program
 Why
designed for seniors
there may not be a better time
 Solutions
available to seniors
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The Problem
We’ve seen an influx of people interested in
solutions designed specifically for seniors due to
what’s happened in the financial markets.

Substantial loss of assets

Reduced income stream

Spending principal to maintain lifestyle

Deteriorating home values
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The Problem


Increased chance of outliving money
Less capable of providing financial
assistance to loved ones

Potentially becoming burden to family

Unknown timeframe for economic
recovery
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Program Designed For Seniors
There are programs designed specifically for
seniors 62 or older that allow them to tap the
equity in their home and turn it into tax-free
cash.
These particular loans have:

NO income qualifications

NO credit qualifications

Best feature: NO monthly payments
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Program Designed For Seniors
These loans have been underutilized simply because of
lack of education and awareness.
It is referred to as reverse mortgage or a
Home Equity Conversion Mortgage (HECM)
It contains built-in consumer protections.
The FHA recently introduced a HECM Saver with
minimal upfront costs.
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Program Designed For Seniors
Newsday.com
“The government, AARP, Kiplinger (the business forecast and
personal finance advice publisher) and others, recommend the
federally insured reverse mortgages as a good deal if you're at
least 62, have sufficient equity in your primary residence and
need a cash cushion.”
New York Times
“In surveys, many borrowers say reverse mortgages have
improved their lives and provided money they needed for
retirement.”
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Becoming Well Known
THE WALL STREET JOURNAL
“How To Fund Retirement Living”
“Seniors Drawn to Mortgages That Give Back”
USA Today
“Reverse Mortgage Can Be A Blessing”
Kiplinger’s Personal Finance
“Your Home as a Retirement Fund”
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MetLife Mature Market Institute
& National Council on Aging
Tapping
Home Equity
in Retirement
A study released in June, 2009
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Tapping Home Equity in Retirement
MetLife Mature Market Institute & National Council on Aging
“Home equity can play an important role… in
coping with financial uncertainties in later life.”
“…it can also help older homeowners to
remain flexible and adaptive, and to respond
to problems while they are still manageable.”
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Tapping Home Equity in Retirement
MetLife Mature Market Institute & National Council on Aging
“Financial professionals should re-examine the
role of housing wealth as an integral part of
financial risk management.”
“…new ways to view reverse mortgages as part
of a financial strategy to increase income
security, enhance financial resilience, and
improve debt management.”
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Center for Retirement Research
at Boston College
“Home equity remains a major financial asset and can
significantly impact retirement security. How this and
future generations decide to use their home equity could
determine how well many fare in retirement.”
“Not tapping home equity through a reverse mortgage
increases the percent of those at risk. This change is
striking: its impact on the percent of households ‘at risk’
is greater than that of the stock market crash.”
The NRRI and the House, Fact Sheet No. 1, March 2010
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Questions and Answers
Because these loans have been
underutilized there are some questions
that come up and they will be addressed
here…
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Questions and Answers
MY SPOUSE HASN’T REACHED 62 YEARS
OLD. CAN I GET A HECM?
Yes. As the only borrower, if he or she moves, sells or passes
away the loan would be payable.
You may choose to do so in conjunction with financial advice
from a professional.
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Questions and Answers
WILL THE LENDER TAKE MY HOUSE?
No. The title stays in your name. The loan is a lien
just like a conventional mortgage.
If you, or ultimately your heirs, sell the house you or
your heirs keep any remaining equity.
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Questions and Answers
WHAT ARE THE COSTS CONNECTED
WITH A HECM?
The costs are much the same as those of a traditional
mortgage.
The only out-of-pocket cost is an FHA appraisal ($400$450).
Also, our strategic partner has multiple lenders such as
MetLife Bank and Bank of America and they shop for the
best program and the best interest rate for you.
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Questions and Answers
AM I SPENDING MY CHILDRENS’
INHERITANCE?
After the loan is paid off, your heirs keep the remaining
equity.
Many people use a HECM to help loved ones now. Others
arrange to use some of the money to leave heirs even more.
Children of many seniors are happy that their parents have a
financial solution available to help them live more
independently and financially secure.
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Questions and Answers
AREN’T THESE LOANS ONLY FOR
THOSE IN NEED?
Certainly the HECM has helped folks in need, but it is
frequently used as a tool by homeowners to enhance
their retirement years in conjunction with financial
advice from a professional.
For instance, it is commonly used to protect and
preserve assets from the single most catastrophic risk
seniors face.
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Questions and Answers
I CURRENTLY HAVE AN EXISTING LOAN. CAN I
GET A HECM?
Sure, if the proceeds from the HECM are sufficient to
pay off the existing loan.
Many people like it because it eliminates a monthly
mortgage payment, freeing up cash for other purposes.
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Questions and Answers
WILL I OWE MORE THAN MY HOME’S VALUE?
You will never have to pay back more than the value of
the house at any point in the future – guaranteed by the
Federal Housing Administration (FHA).
You’ll never leave behind a debt.
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Questions and Answers
WILL IT DISQUALIFY ME FROM SOCIAL
SECURITY OR MEDICARE BENEFITS?
No. Using money from your house does not affect
Social Security or Medicare benefits. What’s more, it
will not contribute to taxation of your Social Security
benefits.
For any other entitlement, it is recommended that you speak with the
appropriate governmental agency.
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Questions and Answers
I’M THINKING ABOUT MOVING. MAY I BUY
MY NEXT HOUSE WITH A HECM?
Yes. A new feature allows seniors to use a HECM to
purchase a principal residence, allowing you to keep
significantly more of your assets to help fund your
retirement and protect your assets.
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Built-In Safeguards and
Strict Regulations



Financial Professionals Are NOT Allowed To Offer
These Loans
Loan Providers May Not Offer Consumers Financial
Products
Purchasing a Financial or Insurance Product Cannot
Be Required in Order to Obtain a HECM
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Why there may not be a better time
The Real
Estate Bubble
Real estate values rose rapidly from 2000 to
2006 and have since deteriorated.
Depressed property values are not likely to
improve soon.
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Time to Act?


Home values not likely to
recover any time soon
Historically low interest rates
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Solutions Available to Seniors

Increase spendable income

Avoid spending principal

Enhance lifestyle

Protect and preserve assets

Transfer greater wealth to loved ones
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Solutions Available to Seniors
Increase spendable income

Plan for reliable, guaranteed income

Relieve financial stress

Pay off existing mortgages or debts
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Solutions Available to Seniors
Avoid spending principal

Re-grow your assets

Ensure you don’t outlive your money

Strengthen your financial future
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Solutions Available to Seniors
Enhance lifestyle

Live more comfortably

Travel

Purchase a vacation home

Have the money you need,
when you want it
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Solutions Available to Seniors
Protect and preserve assets

Avoid depleting life savings

Remain in your home

Maintain your independence

Avoid the expense of extended health care
“The single most catastrophic financial risk we face.”
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Solutions Available to Seniors
Transfer greater wealth to loved ones

Help grandchildren with college

Gift money to family or charity

Provide for your family’s future needs
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Strategic Alliance
For those who may benefit from these solutions,
we have formed a strategic alliance with a
company that will:

Educate you on the program
Provide a no-cost, no-obligation
consultation, including how much you
may be eligible for

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For More Information
With your permission, we will forward a Client
Contact Form to
Spiriter Reverse Mortgage Solutions
a division of a federally chartered bank,
serving folks all over America
The Preferred Client Group will call you and
explain the programs and estimate the amount of
money available to you.
They have multiple lenders and they shop for the best
program and the best interest rate for you.
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