HARNESS THE POWER OF YOUR MORTGAGE

1. HARNESS THE POWER OF YOUR MORTGAGE _________________________________ SM

2. Most people fail to realize the devastating impact this has on their financial future. There has to be a better way. Building a secure financial future is not as easy as it used to be. • In 2008, consumer debt in the U.S. surpassed $3.3 trillion. Credit cards account for nearly half of that debt.1 • In the last decade, consumer credit card debt has quadrupled. The average American household has 11 credit cards with a balance over $12,000 at an average interest rate of 18%.2 • If you make a minimum monthly payment on that debt, at 18%, it will take you almost 34 years to pay it off and will cost you almost $18,000 in interest alone.3 1 Federal Reserve Bank, June 2008. 2 Cardweb.com, June 2008. 3 Bankrate.com, June 2008

3. How To Win the Money Game Financial Literacy Group can show you a different way to use your mortgage as a cutting-edge financial tool. 1. Build Wealth – Leverage old money you are already spending to create new money that can be put to work for you. 2. Eliminate Debt – Harness the power of compound interest to work for you, not against you. Educating and empowering consumers is a way of life at Financial Literacy Group. We do what’s right.

4. The Old Way of Thinking: First, get the lowest-rate mortgage... Harness the Powerof Your Mortgage • Then, start a bi-weekly mortgage program... • And, send in additional money whenever possible to reduce the principal balance... ALL so you can pay off the mortgage as soon as possible. This Depression Era mindset has been burned into the American psyche. But, is it possible this is exactly what you should NOT be doing?

5. The rules have changed. Now... Choose the best mortgage, not necessarily the one with the lowest rate. The New Rules of Money • Stay away from bi-weekly mortgage plans. • Paying off your loan is like putting money under your mattress. Your goal is to make the smallest payment with the biggest tax-break possible. That means never paying off your mortgage. To understand why, discover The Truth About Money.

6. The Truth About Money “ Here are 5 great reasons to carry a big, long mortgage and never pay it off. ” – Ric EdelmanAuthor of the acclaimed National Best-Seller, The Truth About Money, 1997 “Book of the Year” Reason #1: Mortgages don’t lower home values. Your house will grow in value (or not) whether or not you have a mortgage. In fact, most people discover that, over time, their mortgage balance falls while their home value rises – creating substantial wealth they never expected. Reason #2: Your mortgage is the cheapest money you’ll ever buy. Most people need to borrow money during their lives, so why pay 18% APR to credit cards whenyou can borrow at rates of 7% APR1 or even less? Reason #3: Your mortgage is the best way you can lower your taxes. Interest you pay on personal loans, auto loans and credit cards is not tax-deductible, but for most of us, interest you pay on mortgage loans is fully tax-deductible, making the cheapest loan you’ll ever get, even cheaper. Imagine borrowing money for a net cost of less than 5%.1 You can do it with a mortgage loan. 1 Interest rates subject to change. The above hypothetical examples are for illustrative purposes only.

7. The Truth About Money- continued Reason #4: Get the cash out of the house — while you still can. The main reason people turn to borrowing is because they have little or no cash income. But if you ever suffer a job loss, major medical or other financial crisis, you could find yourself unable to get a home loan. That’s because lenders don’t like to lend money if you are already in financial difficulty. That’s why you should get a big mortgage now, before you need it — and while you still can. Reason #5: Your mortgage becomes even cheaper over time. Depending on the loan you choose, your payment never rises — but your income likely will. That means today’s mortgage payment becomes increasingly easy to pay over time! The rules of money have changed. And nowhere is that more true than with mortgages.

8. Our story begins with two brothers, each earning $84,000 a year. They each have $40,000 in savings and both are buying $200,000 homes. Brother “A” Believes in “The Old Way” – paying off the mortgage as soon as possible Brother “B” Believes in “The New Way” – carrying a big, long mortgage and never paying it off “A Tale of Two Brothers”Adapted from the New York Times Best-Seller, The New Rules of Money, by Ric Edelman 15-yearfixed-rate fully amortizing mortgage at 5.75% (5.91% APR) 30-yearfixed rate fully amortizing mortgage at 6.125% (6.85% APR) $40,000big down payment $0left to invest $1,329monthlypayment (Interest portion of payment is tax-deductible)2,3,4,5,6 $1,188average monthly net after-tax cost2,4,5 Sends $100monthly to lender in effort to eliminate mortgage sooner $10,000small down payment $30,000remaining to invest $1177monthly payment(Interest portion of payment is tax-deductible)2,3,4,5,6 $867average monthly net after-tax cost2 Adds $100monthly to investments, plus $321 saved from lower average monthly net after-tax mortgage payment, where account earns 7% rate of return3 Who made the right decision? These hypothetical examples are for illustrative purposes only. Plans vary based on the needs and wants of the customer. Illustrated interest rates are based upon the interest rates compiled by Fannie Mae for January 2009. Private mortgage insurance would likely be required. This cost is included in the examples above for illustrative purposes. 2Assumes combined federal/state income tax rate of 32%. Assumes that interest paid is fully deductible. 3Assumes 7 rate of return. Rate of return may vary based on type of investment. 4The interest on the portion of the credit extension that is greater than the fair market value of the dwelling is not tax deductible for federal income tax purpose. 5The consumer should consult a tax advisor for further information about the deductibility of interest and charges. 6 Monthly payment amount does not include homeowner's insurance or property taxes. This is not a solicitation or offer for the purchase of any product. Payments do not include amounts for taxes, insurance or any other products. Rates could change or be unavailable at the time of commitment or closing.

9. Results After Just 5 Years Brother “A” Believes in “The Old Way” – paying off the mortgage as soon as possible Brother “B” Believes in “The New Way” – carrying a big, long mortgage and never paying it off “A Tale of Two Brothers”Adapted from the New York Times Best-Seller, The New Rules of Money, by Ric Edelman Received $12,745 in tax savings2,4,5 Received $18,620 in tax savings2,3,4,5 Has $0 in savings and investments Has $71,129 in savings and investments2,3,4,5 What if both brothers suddenly lose their jobs? Has no savings to get through crisis Has $71,129 in savings to tide him over 2,3,4,5 Can’tgetaloan – eventhoughhehas$75,915more in equity than his brother – because he has no job Must sell his home or face foreclosure because he can’t make payments At this point, it’s a fire sale, so he must sell at a discount, then pay real estate commissions (6-7%) Doesn’t need a loan Can easily make his mortgage payment even if he’s unemployed for years Has no reason to panic since he’s still in control — remember … Cash is King! How ironic: Brother “A”, who never wanted a mortgage in the first place, is now in financial jeopardy because he was trying to get rid of his loan too quickly! These hypothetical examples are for illustrative purposes only. Plans vary based on the needs and wants of the customer. Illustrated interest rates are based upon the interest rates compiled by Fannie Mae for January 2008. Private mortgage insurance would likely be required. This cost is included in the examples above for illustrative purposes. 2Assumes combined federal/state income tax rate of 32%. Assumes that interest paid is fully deductible. 3Assumes 7% rate of return. Rate of return may vary based on type of investment. 4The interest on the portion of the credit extension that is greater than the fair market value of the dwelling is not tax deductible for federal income tax purpose. 5The consumer should consult a tax advisor for further information about the deductibility of interest and charges. 6 Monthly payment amount does not include homeowner's insurance or property taxes. This is not a solicitation or offer for the purchase of any product. Payments do not include amounts for taxes, insurance or any other products. Rates could change or be unavailable at the time of commitment or closing.

10. Results After 15 Years Brother “A” Believes in “The Old Way” – paying off the mortgage as soon as possible Brother “B” Believes in “The New Way” – carrying a big, long mortgage and never paying it off Results After 30 Years Brother “A” Brother “B” “A Tale of Two Brothers”Adapted from the New York Times Best-Seller, The New Rules of Money, by Ric Edelman Received $22,368 in tax savings 2,4,5 Received $54,564 in tax savings1,2,4,5 Has $27,996 in savings and investments 2,3,4,5 Owns home outright Has $209,723 in savings and investments2,3,4,5 Remaining mortgage balance is $129,559 – and he has enough savings to pay it off and still have $80,164 left over, free and clear. Received $22,368 in tax savings2,4,5 Received $82,037 in tax savings1,2,4,5 Has $498,029 in savings and investments2,3,4,5 Owns home outright Has $705,584 in savings and investments2,3,4,5 Owns home outright – so starts fresh and enjoys the same benefits once again. Now...whichdoyouthinkistherightcourseofaction–“TheOldWay”or“TheNewWay”?Remember...Cash is King – and Brother “B” now has more than $705,000 in savings and investments! These hypothetical examples are for illustrative purposes only. Plans vary based on the needs and wants of the customer. Illustrated interest rates are based upon the interest rates compiled by Fannie Mae for January 2008. Private mortgage insurance would likely be required. This cost is included in the examples above for illustrative purposes. 2Assumes combined federal/state income tax rate of 32%. Assumes that interest paid is fully deductible. 3Assumes 7% rate of return. Rate of return may vary based on type of investment. 4The interest on the portion of the credit extension that is greater than the fair market value of the dwelling is not tax deductible for federal income tax purpose. 5The consumer should consult a tax advisor for further information about the deductibility of interest and charges. 6 Monthly payment amount does not include homeowner's insurance or property taxes. This is not a solicitation or offer for the purchase of any product. Payments do not include amounts for taxes, insurance or any other products. Rates could change or be unavailable at the time of commitment or closing.

11. The Reverse Mortgage Two of the biggest problems facing seniors today are the ability to pay their mortgage and to gain access to the equity in their home. A Reverse Mortgage solves both problems: • Eliminating the mortgage payment • Taking control of the equity in the home now — either through one lump sum payment or monthly distributions You can have all of these great advantages at no expense to you, with no monthly payments. The Reverse Mortgage… a revolutionary new approach for today’s seniors.

12. No matter what your approach, our extensive mortgage portfolio can help you. Harness the Power of Your Mortgage Traditional mortgage products — including fixed-rate loans (15-, 20-, 30- & 40-year terms), ARM loans (3-, 5- & 7-year terms), balloon loans, second mortgages and home equity loans. Interest-Only loans — products that allow you to pay just the interest each month, maximizing your tax benefits and freeing up more money to save or spend. Reverse mortgage programs to help seniors manage home equity and have financial dignity in retirement. Our cutting-edge mortgage analysis and application process makes finding the right product for you simple, quick and easy.

13. If you are like most people, you’re ready to take the next step. You need to get started today: Get Started Now • Get with your FLG representative to complete your free electronic mortgage Loan Quote. 2. Review the results, and take advantage of the mortgage product that best fits your needs. It’s time for you to harness the power of your mortgage and start winning the money game.