1. 1 Copyright 2005-2006 CMG Financial Services, Inc. All rights reserved. Revocable license for use is granted to Certified, approved CMG Mortgage Inc broker partners with applicable state licenses in good standing, and does not convey any rights or title to elements contained herein. No changes without copyright holder’s express written permission. Program terms subject to change without notice; Adjustable rate line of credit; interest savings and payoff timing will be affected by payments, draws, and interest rate environment, and loan balance may increase if withdrawals exceed deposits. “Home Ownership Accelerator” and the yellow flying house logo are trademarks of CMG Financial Services Inc.

2. 2 Today’s mortgages: see a trend? 1980’s: –ARM’s, neg-am ARM’s 1990’s: –Hybrids (3/1, 5/1, 7/1) 2000’s: –Interest-only loans –40-year mortgage All about the PAYMENT Not about the PAYOFF

3. 3 More people can make the payment. So prices go up. TREND: Home prices vs. Income

4. 4 But so does debt. Mortgage debt has nearly doubled since 2000.

5. 5 How do you plan to build wealth? Can no longer count on appreciation. Average consumer is worried about retirement. Retiring with large debt is not desirable. –Downsize? –Move out of state? –Use up retirement savings?

6. 6 How do you pay off sooner without more income? Make the money you already have work harder!

7. 7 The key: Checking account “bucket” Money always in there Long-term money Monthly needs Daily needs

8. 8 How it looks: piles and holes Bank account: 1% Home loan: 6% Paychecks Expenses Prepaying isn’t attractive Might need that money Can’t get it back

9. 9 What if we could change this? Bank account: 1% Home loan: 6% Paychecks Expenses

10. 10 Just move the arrows here… Bank account: 1% Home loan: 6% Paychecks Expenses

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12. 12 Primary product benefits Saves thousands in interest Pay off in about half the time No change to spending habits

13. 13 What others are saying…. “…designed to help borrowers accelerate their principal payments as painlessly as possible.” -- 5/26/05 “…could revolutionize the way Americans pay for their homes…” -- 6/10/05

14. 14 How does it work? Home Ownership Accelerator ---- The MOVIE!!!

15. 15 It’s different than a mortgage. Line of credit: first lien position –$100,000 to $2.5 million –Up to 90% loan-to-value Variable rate –1 mo. LIBOR index + margin –Life cap is 5% over start rate

16. 16 Line of credit -- structure Key terms: Line amount / Loan amount Initial credit line (10 years) Credit line (final 20 years) Principal balance (sample) Available credit $500K LINE $400K LOAN 102030

17. 17 The loan for all seasons Investment / Return Paydown / Payoff Retirement Funds

18. 18 What affects daily balance? Money In (reduces) –Direct Deposit Equals payment PLUS a whole lot extra! –Bonuses, dividends –Rental property income –Small business income Money Out (increases) –Interest Computed on daily balance Added to principal at end of month –Access to money (equity) ATM (8 free/mo, STAR, CIRRUS) Visa P.O.S. card Unlimited checks Bill-pay (free) Powered by $11B bank partner

19. 19 Will it work for me? Calculator on www.cmghome.comwww.cmghome.com –Interest costs –Payoff timing

20. 20 Bottom line: Let your money work for YOU, not the bank Whose money is it, after all?

21. 21 10 COMMON QUESTIONS

22. 22 #1: It’s new. Is it for real? Developed by CMG Financial Services –$5B in fundings annually Transactions powered by GMAC Bank Nearly 4 years in development Popular in Australia, Great Britain since early 90’s –$100B per year in Australia

23. 23 #2: What about rising interest rates? It’s not about the rate anymore! It’s about HOW MUCH INTEREST you pay on a LOWER PRINCIPAL balance Parking outside funds against mortgage can completely offset the impact of rising interest rates I paid 6% APR and $400,000 in interest I paid 8% APR and $250,000 in interest

24. 24 #3: If I pay off early, I’ll lose my interest tax deduction! Good news…you WILL! Interest is not in your best interest! –Pay $3 in interest to get a $1 deduction? –Want larger tax deductions? Get a higher rate! Interest is still deductible while you have the loan

25. 25 #4: I could just prepay my current mortgage. Requires huge discipline Can’t get it back The balance of your money sits in the bank

26. 26 #5: Where’s my money ---really? Is it FDIC insured? Your wealth is converted to home equity –Saves interest –Higher effective yield on your money Not a bank account (FDIC) –30-year agreement –24/7 access to your money

27. 27 #6: Isn’t access to all that equity dangerous? Loan requires discipline Reality: you get other offers of credit Security blanket vs. unexpected need

28. 28 #7: How do you really know my loan will pay off in “x” years? Payoff timing and interest costs driven by –Income –Spending habits –Loan Amount –Interest rate environment Calculator is conservative Importance is comparison vs alternatives!

29. 29 #8: What if my home loses value? No different than any other mortgage. –You owe a set amount If you pay off faster, you’re less likely to be underwater.

30. 30 #9: What’s the payment? No set payment, like with a traditional loan We’ve ‘decoupled’ principal and interest Principal: any deposit you make Interest: based on daily balance

31. 31 #10: Won’t you close the line if I pay off early? No -- Can draw up to the credit line for 30 years You can keep depositing after payoff –Can open “linked” money market account

32. 32 Thank you!