The Fine Print (according to our lawyer)

We are pleased that you have chosen to spend time visiting our web site. We want to make sure you understand important terms related to the information and resource made available to you. We have asked our lawyer and experienced loan professionals to get together and write down what is critical for you to know when reviewing our Reverse Mortgage Cash Calculator (“Calculator”). Here it is:

Reverse Mortgage Loan Product Options

When we present loan product options through our Calculator, we try our very best to present the most current information provided to us by the various lenders. Please know that product options do change and sometimes get discontinued. Our presentation of the information is not an actual offer to make the loan to you and does not pre-qualify or qualify you for a loan. To learn more about reverse mortgage in general, visit our web page “How a Reverse Mortgage Works”.

Many of the loan products have specific requirements, some are insured by HUD, some are not. We do not describe the details of each unique loan product, but are happy to do so with you on the phone or through follow up correspondence. The products have varying features, costs and fees associated with them and the time it takes to apply and receive the funds from a loan vary by lender as well. Once again, we would like to share these details with you upon your request.

Not all loan products are available in all states.

The Numbers

As you review the information on our web site and use the Calculator made available, you will see many numbers presented to you based on the information you have provided to us. Here is the fine print regarding all those numbers.

Dollar Amounts: All dollar amounts presented are estimates only. Exact information cannot be displayed as we do not know all the specifics for your loan transaction at this time. Once you apply for a loan, you will be given a good faith estimate that will have better estimate of the amounts, costs, fees and other expenses related to your loan.

Specific Assumptions used by Golden Gateway: In order to present an estimation for your comparison, we made a few assumption that may not reflect the actual amounts you will incur:

• Monthly Mortgage Servicing Fee: We have estimated this at $30/month for a reverse mortgage. This amount may be higher or lower for you. This is the most common average amount we have seen on loans to date.
• Closing Costs: These vary quite a bit based on where you live (county/state) and your individual loan circumstances. In our attempt to provide a better comparison, we have chosen to use an average of the closing costs nationwide for a borrower whose home is valued at $400,000 for purposes of our illustrations. Here is a sample list of what is included in the fees and charges that make up the Closing Costs a borrower will pay for a loan:
  1. Appraisal Fee
  2. Title Insurance Fee
  3. Credit Report Fee
  4. Flood Certificate
  5. Escrow/Attorney Fees
  6. Settlement Fees
  7. Tax Service Fee
  8. Recording Fees
  9. Local/State Taxes
  10. Courier Fees
  11. Inspection/Survey Fees
  12. Notary Fees

Rates: All interest rates are based on indexes used by various lenders. Typically, we will update these rates weekly, but sometimes, lenders make adjustments to rate more frequently. Here are the most common indexes used and their definitions to determine rates by lenders:

• One-Year Treasury Constant Maturity is an index published by the Federal Reserve Board based on the average yield of a range of Treasury securities, all adjusted to the equivalent of a one-year maturity. The index is used most commonly for FHA Adjustable products.
• LIBOR indexes (1-Month, 6-Month) are among the most common of benchmark interest rate indexes used to make adjustments to adjustable rate mortgages. LIBOR stands for London InterBank Offered Rate. It's the rate of interest at which banks offer to lend money to one another in the wholesale money markets in London. It is a standard financial index used in U.S. capital markets. The index can be found in the Wall Street Journal. These indexes are used most commonly for Lender specific products.

Age: We ask for your age (and hope you were honest with us), not your birth date when presenting loan product information to you. When an application is taken, you will have to provide your actual date of birth (as well as for any co-borrower). The results provided by us do not account for specific loan programs that consider the individual birth date of each borrower. Based on actual date(s) of birth, the specific terms of your loan (i.e. amount) may vary. If you would like to understand the specific impact of your age and any co-borrower, please call us to discuss.

If You Apply

We are here to help you through the process and take your application if you choose to obtain a reverse mortgage. There will be many state and federal required disclosures given to you to read, keep and acknowledge throughout the process.

The information presented on our web site does not constitute an offer of any kind. We are happy to help you with an application and review the process with you. Once you complete an application, you will have to complete a federally required counseling session, obtain an appraisal on your home and complete the lenders' underwriting process for loan approval. We do not make credit decisions in connection with your loan application and do not guarantee any of the products made available. Each specific lender we do business with shall make the decision to accept and approve your application. Our intent is to help you complete all these tasks willingly and successfully in the areas we are licensed to serve.

If You Want More Fine Print

We have allowed our lawyer to write more about the website, the information provided and your use of our website. If you are interested (and we think you should be) in reading, please refer to our Terms of Use and Privacy Policy.

Revised: April 2008