TAPPING LAZY EQUITY FOR WEALTH PRESERVATION CRISSY NMLS# REVERSE MORTGAGE SPECIALIST First Bank C FL S FL

How is a Reverse Mortgage Different? Loan Based on 3 QualifiersDistribution of Loan Funds 1.Age of Occupant Owner(s) (youngest borrower 62+) 2.Value of the House (lesser of appraised value or $625.5k) ~ American Recovery & Reinvestment Act of Current Interest Rates (lower rates provide higher loan) 1.Lump Sum (single amount paid at closing) 2.Stream of Income (paid from lender monthly) 3.Equity Line of Credit (available as needed via checkbook) or any combination of these three…

Advantages of the Reverse Mortgage NO Income Qualifications NO Credit Qualifications NO Monthly Mortgage Payments Required Proceeds are Tax Free Proceeds due not affect Social Security & Medicare Benefits* Closing Costs can be Financed Interest may be Tax Deductible at time of loan repayment* FHA & FNM Guarantee Payments, Owner Occupancy and Can Never Owe More than House is Worth *always consult a tax professional

Scenario #1 Creating Wealth Age: 75 Home value: $375,000 Investment assets: $300,000 Reverse mortgage proceeds: $200,000 Action: Single premium payment life insurance ($150,000), $1,500,000 benefit Preserved other assets, has $50,000 reserve (gave gifts to grand children, college fund); created potential $1.5MM for heirs.

Scenario #2 Emergency Fund Age: 65 Home value: $625,500 Reverse mortgage proceeds: $316,000 Investment assets; $275,000 Premium investment: $150,000 (life insurance with LTC) Emergency fund of $166,000 available in a LOC that grows 4% a year.

Scenario #3 Age: 75 Home value: $450,000 Reverse mortgage proceeds $241,000 Other assets: $300,000 liquid Client desired to purchase winter home in Florida. Needs $230,000. Does not want to have a monthly payment; considering paying “cash” and wants to tap investment account. Solution: Use reverse mortgage proceeds to pay cash for the property, has no monthly payment, does not touch investment account, has zero tax-liability, assets continue to work for the client.

Scenario #4 Liquidity Age 70 Home value $400,000 Investment assets: $375,000 Amount available: $212,000 The $212,000 is available as a line of credit that grows approximately 4% a year. All distributions are tax free. This LOC can be used as an emergency fund, preventing liquidation of assets and avoiding tax consequences.

Information Needed to Calculate Proceeds Ages of borrowers Estimated value of property Amount of liens Zip code