Serving New Jersey & New York
Reverse Mortgage Specialists
Serving New Jersey & New York
Reverse Mortgage Specialists
Real Estate Mortgage Network, Inc.
1- 800-386-3791, Ext 3527, or 201-738-3879 WWW.REMN.COM
Seniors across the nation are turning to a new source for cash income: Their home. From helping to pay their property taxes or for paying for long-term healthcare or for funding home repairs, now more than ever Reverse Mortgages are providing the financial means for seniors to maintain or in many cases improve the quality of their lives.
Retirement can present special challenges, and we look to help older Americans live in their homes more comfortably and securely by converting the equity in their home into extra cash or monthly income.
In many cases, a reverse mortgage can be financial tool that can truly improve the quality of life for many senior homeowners. We realize that that each individuals needs are different. And because of this, we offer a selection of different reverse mortgage products.
Real Estate Mortgage Network,
Inc. currently offers a full range
of HECM products. We offer the Standard HECM program for both the Fixed rate and
Libor Arm. Also offered is the HECM
Saver product for both Fixed rate and Libor Arm and the HECM for Purchase
program too. The maximum HUD loan limit for high cost areas is currently at $
625,500.00
HECM Saver Fixed and Variable
Rate Options
A lower cost option than the HECM
Standard programs. In late October 2010, the Federal Housing Administration
(FHA) began offering this new version of the HECM program, which will reduce the
fees for many reverse mortgage borrowers. The tradeoff of course being that will
the lower closing costs HUD is also reducing the funds available to the
borrower.
The HECM saver significantly
reduces the upfront mortgage premium (MIP) paid to HUD from 2 percent down to
.01 percent. The ongoing annual MIP, is the same for both the Standard HECM and
the HECM Saver programs equal to 1.25% of the outstanding loan
balance.
Please contact the lender for
more program details.
HECM for
Purchase
This program allows seniors age
62 or older to purchase a new principal using the proceeds from the reverse
mortgage. This program will enable seniors to relocate to other geographical
areas in order to be closer to family members and/or downsize to homes that more
closely match their physical needs. Examples: One level ranch type homes with
fewer step,m ramps and wider entrances.
Program
criterion
·
The
purchased home must be occupied within 60 days of closing
·
The
reverse mortgage can be the only loan on the property
·
The
difference between the purchase price of the home and the reverse mortgage
proceeds will be paid in cash from the sale of existing home or other liquid
assets
Please contact the lender for
more program specifics regarding eligible type properties and acceptable sources
of funds/liquid assets.
Some Common Uses of a Reverse Mortgage
q Provide additional monthly income
q Provide funds for home repair and maintenance
q Pay off existing debt ? no more monthly payments
q Retire an existing mortgage
q Fund long term care insurance
q Cash reserve for emergencies
q Pay off credit card debt
q Funds to help grandchildren or loved ones
q Additional cash for investments
If you are at least sixty-two years of age (your spouse too) and have equity in your home, a reverse mortgage can turn that equity into cash, a line of credit, monthly income or any combination of the three. The program rewards age; the older you are the greater the available amount of funds will be. Contrary to conventional mortgages, there are no monthly payments on a reverse mortgage and the proceeds are tax-free. There are no credit or income requirements to qualify for a reverse mortgage. You continue to retain ownership of the property and stay there for as long as you please. In many cases, seniors may be "home rich and cash poor" the reverse mortgage program enables seniors to access the financial potential contained in their homes, and allow them to utilize it as they desire.
The borrower must occupy the property as his or her primary residence, and HUD / FHA will require that all applicants for the program secure counseling about the reverse mortgage via an independent HUD-approved counseling office.
Reverse Mortgage borrowers can choose from several payment plan options:
Tenure: Borrower receives a monthly check for as long as they live in the home;
Line of Credit: Borrower can draw up to a maximum amount at the times and in the amounts of the borrower?s choosing;
Lump Sum Cash Advance: A lump sum of cash distributed to borrower at closing;
Modified Tenure: Any combination of the above options.
Note: The fixed rate product has limited payment plans and requires a full lump sum advance at closing.
Funds from a reverse mortgage
are considered to be a loan proceeds, not income. Therefore, the funds received
are not subject to income tax and do not affect Social Security benefits.
Borrowers receiving SSI or Medicaid may not be affected if the funds from
the reverse mortgage are spent in the month they are received.
We recommend you consult your tax advisor for further details.
The reverse mortgage becomes due and payable when the borrower permanently leaves the home- whether they move, sell or pass away. Reverse mortgages are typically repaid from the proceeds of the sale of the home, with any remaining equity staying with the homeowner or their heirs. However, if the heirs wish to keep the home they may do so by refinancing the property with a conventional mortgage. If the spouse passes away, the surviving spouse continues to receive the full benefits of the reverse mortgage, with no repayment until they decide to permanently leave the home.
q Retain ownership of property;
q Live in home as long as you please;
q
Funds available for whatever purpose you desire;
q
Provides easy access to your equity built up in your home;
q
Provides increased tax-free monthly income
q
HECM program is HUD insured;
q
HECM for Home Purchase;
q
HECM on Co-op coming soon.
Variable interest rate
tied to LIBOR adjusted monthly
Fixed rate product..
Costs vary based on
program selected. The selection of
programs can satisfy a variety of needs. The
closing costs on reverse mortgages are similar to that of conventional
mortgages. Customary charges
include interest charges, closing costs, origination fees, inspections and
insurance. We will be happy to
provide you with a good faith estimate of the costs involved.
Reverse Mortgages are allowing seniors the opportunity to make their home, that they have taken care of, for so many years, take care of them in return.
Real Estate Mortgage Network Inc. (REMN), founded in 1987, is one of the oldest Licensed Mortgage Bankers in the State of New Jersey. Real Estate Mortgages are our only business. REMN is also licensed to do Reverse Mortgage business in New York.
We consider our customers "clients for life" and do everything possible to maintain that relationship.
Len Ricci is the Reverse Mortgage Manager. Len has been working with senior citizens for the past 20 years. His first job out of college was with the Social Security Administration as a Claims Representative. Later, he began his banking and lending career and was one of the original pilot lenders for the Reverse Mortgage Program in New Jersey in 1990. He has worked with hundreds of reverse mortgage applicants through the years.
Len has a Bachelors Degree in Management from Montclair State University, Montclair, NJ and Masters Degree in Business Administration from Fairleigh Dickinson University, Teaneck, NJ. You may contact Len directly at 1-800-386-3791 Ext 3527 or at 201-738-3879 for all reverse mortgage inquiries, or email him at Lricci@REMN.com.
Harriet is a graduate of Gibbs College as well as being a business
major at Montclair State University. She is an active volunteer for
several social service organizations including the American Red Cross. Harriet
welcomes your call at 973-699-6336, or direct 201-708-1739 or e-mail
hmccormack@remn.com for all
reverse mortgage loan inquiries.
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