What is a reverse mortgage?
A reverse mortgage¹ is a unique type of mortgage which allows you to convert the equity in your home into a ready source of funds for a variety of needs.² It is a wealth distribution tool for those who want additional cash flow but do not want to liquidate or disrupt their investment portfolio or other assets.

What are a few of the qualifications needed to apply for a reverse mortgage?

• You must own and live in the home
• Homeowner(s) on title must be 62 or older
• The home must be in California, Connecticut, New Jersey, New York, Florida or Texas
• You need to attend a special reverse mortgage counseling session

Frequently Asked Questions:

How can I use a reverse mortgage?
Is a reverse mortgage right for me?
What are the features of a reverse mortgage?
How large of a credit line can I receive?
What reverse mortgage products are available?
Can I owe more than the home is worth?
What is reverse mortgage counseling?
What if I already have a mortgage on the home?
What are the costs?
What are my responsibilities as a homeowner with a reverse mortgage?
Who really owns the home?
Can I be evicted from my home?
What types of homes are eligible?
Will I still have an estate that I can leave to my heirs?
Are there any restrictions on what I can do with the proceeds?
How can I learn more?




How can I use a reverse mortgage?
Funds from a reverse mortgage may be used for a variety of purposes², including:

• Estate and retirement planning
• Funding college education for grandchildren
• Helping children or grandchildren purchase a home
• Purchasing a second or vacation home 
• Making home improvements
• Traveling
• Pursuing a new business venture
• Purchasing life insurance 
• Paying for long-term care and hospital costs
• Reducing monthly bills
• Providing a source of funds when you need it to remain independent and in your own home

Is a reverse mortgage right for me?
If you are 62 years of age or older and have equity in your home, then a reverse mortgage could provide access to an additional source of funds to use if and when needed. A reverse mortgage can be a good financial option if you would like to:

• Access potentially tax-free funds³ that do not affect your eligibility for Social Security or Medicare benefits 
• Avoid liquidating your assets or disrupting your investment portfolio 
• Retain ownership of your home 
• Have a source of funding that can be adjusted to meet varying circumstances and goals 
• Perform estate and retirement planning
• Access home equity without selling your primary residence or obtaining a traditional mortgage or home equity line/loan that requires making monthly payments 
• Qualify for a reverse mortgage with no required income or employment qualification or credit score review

What are the features of a reverse mortgage?

• A reverse mortgage provides funds based on the equity in your home 
• No monthly payments required 
• Depending on the type of reverse mortgage you choose, funds can be disbursed in a variety of ways:
• Monthly cash payment
• Lump sum
• Standby line of credit
• Or a combination of the above options
• You continue to own your home 
• Funds received from the reverse mortgage are repaid when you no longer occupy the home as your primary residence 
• The amount you owe will never exceed the value of the home 
• Reverse mortgages are available only on primary residences

How large of a credit line can I receive?
This will vary based on the reverse mortgage product you choose and:

• Your age(s) 
• The value and location of your primary home 
• Current interest rates

What reverse mortgage products are available?
Merrill Lynch accepts applications for three types of reverse mortgages.

• Home Equity Conversion Mortgage
• Fannie Mae HomeKeeper
• Loan size, rates and other features vary by product.

Since individual needs vary, it is recommended that you speak with a Merrill Lynch Financial Advisor to determine which type of reverse mortgage best complements your overall financial strategy.

Can I owe more than the home is worth?
 
You can never owe more than the value of the home. The loan amount is only a percentage of the home value.

What is reverse mortgage counseling?
Reverse mortgage counseling is a brief, mandatory informational session given by counselors approved by the Department of Housing and Urban Development (HUD) or Fannie Mae. The session can be done over the phone or face-to-face.

What if I already have a mortgage on the home?
Existing mortgage loans must be paid off with the proceeds of the reverse mortgage or with other funds. The reverse mortgage must be the only mortgage on the residence.

What are the costs?
Costs vary from one program to another. Fees are proportional to your home’s value and may include:

• Loan origination fees 
• Standard mortgage related closing costs (e.g., appraisal and title insurance) 
• Mortgage insurance and mortgage recording fees (where applicable)

What are my responsibilities as a homeowner with a reverse mortgage?
You will continue to be responsible for: 

• Payment of property taxes and insurance premiums 
• Maintaining hazard insurance and other insurance (e.g., flood and/or windstorm insurance) 
• Property maintenance and upkeep

Who really owns the home?
You will continue to own your home. A reverse mortgage is a loan against the home that does not require repayment until you no longer live in the property.

Can I be evicted from my home?
You can stay in your home until you decide to sell it as long as you comply with the loan terms.

What types of homes are eligible? 
The home must be your primary residence. Depending on the type of reverse mortgage, it can be:

• Single family home 
• Two-to-four unit homes that you own and occupy 
• Condominium

Will I still have an estate that I can leave to my heirs?
When your home is no longer your primary residence, you or your estate will repay the cash received from the reverse mortgage proceeds plus the interest and other fees. Any remaining equity in your home after repayment goes to you or your heirs.

Are there any restrictions on what I can do with the proceeds?
Reverse mortgage proceeds may not be used to purchase, carry, or trade securities or repay debtincurred to purchase, carry, or trade securities, including any insurance policies which are invested in securities.

How can I learn more?
Contact your Merrill Lynch Financial Advisor or call (877) 507-2691 to speak with a Reverse Mortgage Loan Consultant.

The power of Total Merrill^SM for home financing
To achieve the life you want, it takes a partner who understands what matters to you most today and in the future. Our Financial Advisors and other Merrill Lynch specialists are highly skilled and trained to find powerful, innovative ways to connect all the pieces of your financial life.
 
Drawing on Merrill Lynch’s vast resources, and a deep understanding of you, your Financial Advisor has the ability to deliver the right financial solution at the right time — whether it be a mortgage or otherwise — helping you achieve life on your terms.

¹ Reverse mortgages are provided by Financial Freedom^TM, which is not affiliated with Merrill Lynch & Co., Inc., its subsidiaries and affiliates. The name “Financial Freedom” is a trademark of Financial Freedom^TM Senior Funding Corporation.

The borrower should carefully read the loan documents to fully understand the terms and conditions of the reverse mortgage. A reverse mortgage requires the borrower to provide the lender with a security interest in the borrower’s home usually in the form of a mortgage or deed of trust. The lender will terminate the reverse mortgage loan and require payment of the full outstanding loan balance, accrued interest and fees under circumstances that are explained in the loan documents. The lender can collect amounts owed through the sale of the home.

² Reverse mortgage proceeds may not be used to purchase, carry, or trade securities or repay debt incurred to purchase, carry, or trade securities, including any insurance policies which are invested in securities. This means that reverse mortgage proceeds cannot be used to pay premiums for, or make contributions to, variable life insurance policies, variable annuities or modified guaranteed annuities.

³ Merrill Lynch does not provide specific recommendations on tax issues. Consult your tax advisor regarding the deductibility of interest expense. Interest expense may not be deductible for all taxpayers.

For more information on a Reverse Mortgage from Merrill Lynch, please contact your Merrill Lynch Financial Advisor or call (877) 507-2691 to speak with a Reverse Mortgage Loan Consultant.

Programs, options and property types are not available in all states and jurisdictions and are subject to change without notice. Loans are offered on properties in all 50 states, the District of Columbia, the U.S. Virgin Islands and Puerto Rico. Additional terms, conditions, restrictions, and costs may apply. Merrill Lynch, its affiliated entities, and their employees may receive compensation for its products and services. All residential mortgage programs except the reverse mortgage program, are offered and funded by Merrill Lynch Credit Corporation ("MLCC"), 4804 Deer Lake Drive East, Jacksonville, FL 32246-6484; toll-free telephone: 800-854-7154. Merrill Lynch, Pierce, Fenner & Smith Incorporated, 4 World Financial Center, New York, NY 10080, toll-free telephone: 800-338-2814, Member, Securities Investor Protection Corporation (SIPC), does not make commitments for or fund loans. AZ License BK-0910076; GA Residential Mortgage Licensee; MA Mortgage Broker License MB0825; Licensed by the New Hampshire Banking Department; Licensed by the NJ Department of Banking and Insurance; RI Licensed Loan Broker. Merrill Lynch, Pierce, Fenner & Smith Incorporated, 255 Ponce de Leon Ave., Ground Floor, San Juan, Puerto Rico authorized as a financial intermediary under License No. IF-2007-393.

Total Merrill (design) is a registered service mark of Merrill Lynch & Co., Inc.

Cash Account Advantage and Financial Freedom are trademarks of the Financial Freedom Senior Funding Corporation.

© 2008 Merrill Lynch, Pierce, Fenner & Smith Incorporated.
Member Securities Investor Protection Corporation (SIPC). Printed in the U.S.A.