856-797-3434
NEWMARK REVERSE MORTGAGE DIVISION
Providing Reverse Mortgage Products
in New Jersey, Pennsylvania, Delaware, & Florida
We have extensive Reverse Mortgage resources right here on our website. Follow the links below to learn more
or call us directly at 856-797-3434 for a FREE reverse mortgage consultation.
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WHAT CLIENTS ASK THE MOST
WHAT IS A REVERSE MORTGAGE?
Reverse Mortgage Basics
Reverse mortgages are often used to convert a part of the equity in your home into tax-exempt income (check with your tax advisor), without the need to sell your home, give up the title, or switch to another monthly mortgage payment plan. If you are age 62 or older you can apply for a reverse mortgage.
Through this mortgage program the lender pays you a lump sum amount. Makes fixed periodic (monthly) payments to you the homeowner, provides access to a line of credit, or even a combination of all three. You can use the money received to supplement your retirement income, pay for healthcare, or even go on a vacation!
Here’s how reverse mortgages work:
Reverse Mortgage Qualifications
Reverse mortgages do require a credit check, income requirements, and an overall financial assessment, however, it is a completely different qualification than a regular, “forward” mortgage and is more lenient. Even if you still owe money on a first or second mortgage, you can still apply for this program with the possibility of it working for you. Today’s reverse mortgage would pay off all existing liens and takes primary lien position against your property. Please keep in mind that this program is only for your primary residence consisting of the following property types:
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One to Four-unit home
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Qualified townhouse
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Qualified Condominium
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Manufactured homes; only if they were constructed after June 1976 and are permanently fixed on to the ground- of which you are the owner
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Value of the Reverse Mortgage
The amount of money available through a reverse mortgage depends directly on the age of the youngest borrower and is linked to the appraised value of your home. As a rule, the older you get, the more valuable your home becomes, the less money you owe on it and the more money you can access by virtue of reverse mortgages.
Implications of the Mortgage
The best feature of reverse mortgage funds is that they are tax-free (check with your tax advisor) and have no impact on your regular Social Security and Medicare Benefits. However, be careful of the mode of payment you choose. If you opt for a lump sum payment, it can affect the amount you receive later.
Any amount that you retain in each month after receiving the lump sum reverse mortgage payment counts as a resource. This resource can affect your Medicaid eligibility. It is best to consult reverse mortgage experts and your own Medicaid experts for all your reverse mortgages payment modes. You don’t want to jeopardize any current benefits that you receive.
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When to Repay the Loan?
The loan, relating to reverse mortgages, shall be repaid at any time when you stop using your house as a principal residence. This happens when you sell the home, move out permanently or when you or your last remaining spouse passes away. Bear in mind that the amount you owe will never be greater than the value of your home. If it sells for less than the amount due, the FHA MIP insurance covers the difference. In the event the sales proceeds are greater than the amount owed in respect of reverse mortgages, the excess goes to you or your estate.
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Consult with the Best!
Whenever you think about reverse mortgages, it is best to talk to a certified reverse mortgage professional or a counselor before making the final decision. At NewMark Home Mortgage, our licensed and experienced Certified Reverse Mortgage Professionals (C.R.M.P) offer the best advice – with respect to all your mortgage-related matters.
You can borrow with Confidence as NRMLA’s Certified Reverse Mortgage Professionals must adhere to the Code Of Ethics & Professional Responsibility which is a Pledge to Americas Seniors promising to serve them with integrity and transparency. As of September 2018, there are currently only 155 CRMP’s across the country.
WHY SHOULD I CHOOSE THE NEWMARK REVERSE MORTGAGE TEAM?
NewMark Home Mortgage realizes how important the process of taking out a reverse mortgage is to you. With so many individuals out there claiming to be mortgage specialists, it is more important than ever to make sure that you are in the hands of a trusted professional who is looking out for your best interests!
NewMark Home Mortgage is proud to boast that we have Certified Reverse Mortgage Professionals on staff.
Both Michael Markoff and Greg Newman earned the C.R.M.P. designation and have been specializing in reverse mortgages since 2007. The certification is issued and governed by the National Reverse Mortgage Lenders Association (NRMLA) out of Washington, D.C.
What this designation represents and ensures is that you will be working with an accredited professional who has been successfully practicing in the reverse arena for several years. CRMP’s are bound by the highest ethical standards and distinguishes them as the most knowledgeable, competent, and professional in the industry. As of September 2018, there are only 155 certified reverse mortgage professionals across the United States and only five with offices in the Tri-State area of NJ, PA, and DE (Michael & Greg represent two of these five). They have also successfully assisted and guided dozens of seniors from afar with reverse mortgages in the state of Florida. Distance is not a deterrent when it comes to their hands-on approach.
When it comes to reverse mortgages, Michael and Greg strongly believe that education is the key to a successful result. Their pledge is to complete this education process in its entirely allowing you to make a well-informed decision. They also encourage prospective clients to invite family members and other advisors to be a part of this exciting decision-making process.
To begin the education process or for some more information on reverse mortgages, please click on the additional links or call 856-797-3434 to personally speak to Michael Markoff or Greg Newman.
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We are Certified Reverse Mortgage Professionals
In every industry, there are individuals who strive to excel. They often do so by earning a credential that distinguishes them as being among the most knowledgeable, the most competent and the most ethical and professional.
They make a considerable investment in both time and personal income because they believe in themselves, they believe in the customers they serve, and they believe in the service or product they offer.
At NewMark, we are mindful that the soundness, usefulness, prosperity and future of our industry depends upon our honor and integrity, and on the manner in which we interact with each other and with the seniors whose interests we serve
COMMON REVERSE MORTGAGE QUESTIONS
HOW DOES THE REVERSE MORTGAGE PROCESS WORK?
Education
Do your research. Read up on the process as much as you can. When selecting a loan officer, you should consider working with a professional who has earned the Certified Reverse Mortgage Professional (CRMP) designation, the highest designation in the industry, from the National Reverse Mortgage Lenders Association (NRMLA). A CRMP is a mortgage professional who has made a long-term commitment to use his or her experience and knowledge to serve older homeowners. Equipped with up-to-date education and a high level of connectivity with other top reverse industry professionals, a CRMP is ready to provide you with quality information and options that are appropriate for your goals and your current situation.
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NRMLA commits to the highest ethical standards and the placement of the client’s need above any personal gain, recognition or achievement. You can expect the following form a CRMP:
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Experience
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Commitment to ongoing education
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Integrity
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Ethics
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Quality
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Customer Service
HECM Counseling
Federal regulation and state law often request that reverse mortgage borrowers receive state-certified housing counseling. And while this counseling is mandatory for HECM and Home Keeper reverse mortgage borrowers, the service had available free grants if you qualify. Counseling appointments typically take about an hour and may be handled in-person or over the telephone.
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Loan Application
Your lending agent will require you to complete a loan application and determine how to receive payment and give you options of different products to choose from. The options range from fixed, 1-month Arm, 1-Year Arm, monthly income for fixed term or tenure, line of credit, lump sum, or any combination.
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Processing
Your lending agent will order credit report, title report, appraisal, lien payoffs and correspond with the underwriters to get any additional information to process the file.
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Underwriting
Once your lender has received and completed the required documentation, your loan package will be submitted to underwriting department to confirm the loan, for final approval.
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Closing
After your reverse mortgage loan had been approved and signed, the loan’s initial interest rate will be determined. Closing costs are typically financed by the loan and a time is set for the final documents to be signed.
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Disbursement
Once you have officially closed on the loan and signed all the documents, you have 3 business days to change your mind and cancel the loan. After the 3-day period, the funds are disbursed, including any amount that will be applied to a previous lien on the property. Then you will begin receiving payments according to the payment option you selected.
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Repayment
You will not be required to make monthly payments during the term of your loan. The reverse mortgage becomes due and payable in full once 1) the home is no longer being used as a primary residence, 2) It is sold, or 3) the borrower and any spouse passes away. Upon the death of borrower(s), the loan may be repaid from the sale of the home or by refinancing the existing reverse mortgage. All remaining equity belongs to the heirs/estate.
*This material is not from HUD or FHA and has not been approved by HUD or a government agency.
WHAT CAN I EXPECT TO LEARN FROM MY HOUSING COUNSELING APPOINTMENT?
Accredited housing counselors work with seniors to help them evaluate the viability of a reverse mortgage loan by looking at the borrowers:
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Current budget
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Monthly income
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Loan risks
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Loan benefits
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Interest rates
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Associated fees
HUD -approved HECM housing counselors are required to use loan comparison and analysis software that meets the requirement established by the AARP. Certified counselors must also adhere to the AARP Foundation Reverse Mortgage Education Project counseling policies and procedures. Because it is their job to help insure that you are making a responsible financial decision, they may also review financial options with you.
The AARP Foundation Reverse Mortgage Education Project regulates a nation network of HUD-approved HECM housing counseling agencies by administering the exam that certifies counselors for HUD-approved HECM housing counseling agencies. HUD’s National HECM Counseling Network consists of the exam’s highest scoring counselors. That means that you can be sure that they are charged with looking out for your best interest.
*This material is not from HUD or FHA and has not been approved by HUD or a government agency.
WHAT CAN I EXPECT TO BE INCLUDED IN CLOSING COSTS?
Most of the standard closing costs associated with your Reverse Mortgage can be included in the financing so you do not have to pay them out of pocket. These costs include:
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Mortgage Insurance Premiums: This is the insurance that the FHA uses to make the payment guarantees and non-recourse aspects of your reverse mortgage loan. The premium of the HECM is based on if there are any mandatory obligations against the home and of what percent of the benefit. The Insurance fee is currently 2% of the appraised value of your home (not to exceed $726,525) and is paid directly to the FHA insurance fund. These fees are built into the numbers as part of your reverse mortgage loan.
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Third Party Charges: You will have very similar costs to that of a normal conventional refinance including appraisal, title search and title insurance, recording fees, mortgage taxes, credit check and other fees. The majority of these can be paid from the loan proceeds and built into the numbers as part of the reverse mortgage loan.
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Origination Fee: Based on the FHA & HUD guidelines. This fee is capped at a minimum of $2,500 up to $125,000 value, or 2% of the first $200,000, and 1% of the amount over $200,000. However, if certain criteria is met, we are sometimes able to be more flexible and reduce and discount the origination fee.
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Servicing Fee: This fee is for the maintenance of your account: account statement disbursing loan proceeds and customer service and is typically $30/month. Currently some products come with no servicing fees. This is not a fee that you must pay out of pocket. A reserve is set aside at closing for payment of this fee. Any unused portion is reimbursed to the reverse mortgage borrower when the loan is paid in full. At the current time, the products that we offer do not come with any monthly service fees or need to set up any form of additional set aside.
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Rates: Rates vary between products and programs that can be chosen. When we prepare proposals, we will show a variety of different products with a selection of rates to choose from.
*This material is not from HUD or FHA and has not been approved by HUD or a government agency.
FINALLY, IF YOU ARE ON THE FENCE – CONSIDER THIS. IF THERE WERE A BANK WHERE THE FOLLOWING WAS TRUE, WOULD YOU INVEST?
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You could invest and make subsequent withdrawals, but the account would still appreciate based on the original investment.
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Withdrawals are free from any penalties.
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Withdrawals are not subject to taxes in any way.
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The account is insured to not only guarantee all payments but also protect you and your heirs from any future liability resulting from withdrawing more than your balance.
Payment Plans Available on a Reverse Mortgage
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Tenure – equal monthly payments for as long as at least one borrower is living in the home as their primary residence. You can learn how much you can get in a free consultation with one of our reverse mortgage specialists.
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Term – Equal monthly payment for a specified period.
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Line of Credit – An available amount that can be drawn upon until the maximum amount had been reached. Any unused credit line will increase every year giving the borrower more available credit as there is a growth rate attached to the line.
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Modified Tenure – A combination of line of credit and scheduled monthly payments for as long as you live in the home.
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Modified Term – A combination of line of credit and fixed monthly payments for a scheduled period.
** The Payment Plan can be modified even after the loan is closed for a nominal fee. The amount you can receive either in a lump sum, line of credit or monthly payment is based upon the age of the youngest borrower, the current interest rate, and the appraised value of your home (not to exceed $679,650)
For more answers to common questions, please call one of our Certified Reverse Mortgage Professionals,
Greg Newman and Michael Markoff at 856-797-3434.
*This material is not from HUD or FHA and has not been approved by HUD or a government agency.
REVERSE MORTGAGE SENIOR SAFEGUARDS
YOU CAN BORROW WITH CONFIDENCE KNOWING THAT OUR CERTIFIED REVERSE MORTGAGE PROFESSIONALS ARE RECOGNIZED BY THE NATIONAL REVERSE MORTGAGE LENDERS ASSOCIATION AS HOLDING THE HIGHEST DESIGNATION ONE CAN EARN IN THE INDUSTRY.
They abide by the Code of Ethics & Professional Responsibility, which is a pledge to Americas Seniors, promising to serve them with integrity and transparency.
Our customary methods in terms of consumer safeguards for senior citizens include:
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A personal, one-on-on consultation with an expert Reverse Mortgage Counselor who will analyze the needs of the senior candidate to ensure that one of our many reverse mortgage options is a practical solution. We then share with them a detailed cost analysis and comparison breakdown.
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We provide each candidate with a printed version of the Reverse Mortgage Comparison Breakdown. We review the breakdown with each senior candidate to ensure that the senior clearly understands the options and benefits of different Reverse Mortgage scenarios.
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We strongly encourage all senior candidates to reach out and seek advice from loved ones: family and friends, as well as financial and/or legal advisors regarding their decision to move forward with a Reverse Mortgage.
Before the Reverse Mortgage application is written, we will provide you with the name of a professionally trained HUD approved counselor and arrange for them to furnish you with an expert objective overview and discuss with you all the Reverse Mortgage options.
Upon your acceptance and approval, we will submit the Reverse Mortgage application to our processing team, who once again reviews the selected program to further ensure a proper and educated decision has been made.
The processing team then submits the application to our underwriting department. Underwriting will perform a secondary review of the program and product choice.
Our goal is to help our senior clients find the perfect solutions for their needs. To do so we firmly believe in educating our clients as much as possible and allow them access to straightforward, objective information and answers.
*This material is not from HUD or FHA and has not been approved by HUD or a government agency.
REVERSE MORTGAGE PURCHASE PROGRAM HECM FOR PURCHASE
WHAT IS THE HECM FOR PURCHASE MORTGAGE PROGRAM?
The Reverse Mortgage Purchase Program or HECM for Purchase Mortgage is a great retirement planning tool that allows seniors, over age 62, to purchase a new primary residence using proceeds from a reverse mortgage, thereby reducing the funds needed to close and avoiding a monthly payment.
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Typically, the HECM purchase mortgage will allow a senior to obtain a home with anywhere from 35% to 50% of total purchase price based on borrowers’ age, allowing them to keep more of their retirement assets liquid for other purposes or to get more house for the same investment. Interest rates on a reverse mortgage are quite good, and the home appreciates based on the purchase price.
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For example, a 62-year-old borrower wants to purchase a $250,000 home in New Jersey. Using the HECM for Purchase, the borrower needs to provide $152,750 of his or her own funds for the down payment. The HECM for Purchase reverse mortgage will finance the rest of the proceeds toward the purchase price.
Reverse Mortgage Purchase Program Requirements & Stipulations
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The Reverse Mortgage Purchase Program works the same as a regular reverse mortgage after closing but has a few stipulations on the purchase.
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The home must be purchased as a primary residence and the new owner (the HECM purchase mortgage borrower) must take possession and occupy the property within 60 days of the closing date. For the new home to be considered a primary residence, the buyer must live in the home 6 months and 1 day a year. In addition, the Reverse Mortgage Purchase Program can be used on a new construction property.
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The funds used for closing will be verified and must be from an acceptable source. Cash on hand will be verified with a verification of deposit using two months of bank statements covering the last three months
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Unacceptable funding sources include:
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Sweat Equity
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Trade Equity
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Rent Credit
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Cash or Credit received from any party involved in the transaction except customary based on state law.
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Cash received from any 3rd party or entity that is reimbursed by any party involved in the transaction
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Credit card advance
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Loan taken against another home, car or other asset
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Cash kept in a home safe
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Seller 2nd mortgage
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Seller concessions
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Acceptable funding sources would include:
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Sale of another home
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Sale of boat, car or other personal property
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Liquidation of retirement assets
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Withdrawal from savings or checking account
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Liquidation of stock holdings
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If your proceeds will come from a sale of another home which will close prior to your purchase, you will need a copy of the purchase agreement, a copy of the settlement statement, and a copy of the check given to you at closing. All these acceptable sources will need to be documented, and there may be others not listed here. Get with one of our Certified reverse mortgage professionals (CRMP) for the items that will be needed to document your funds for closing. Additionally, no seller concessions are allowed on the Reverse Mortgage Purchase Program. In addition, the seller is not allowed to carry a mortgage for any portion of the down payment to be paid after closing.
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Advantages of the Reverse Mortgage Purchase Program
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The Reverse Mortgage Purchase Program is a great way to leverage your liquid assets in retirement without increasing your monthly expense. With the Reverse Mortgage Purchase Programs, we have helped seniors:
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Buy a new home before their current home is sold
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Afford a home in Florida and keep the one back home
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Buy the type of home they really want in retirement without compromising their financial security
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Keep more assets liquid and in investment accounts
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Keep their assets available for emergencies and rainy days
Since HECM for Purchase is a relatively new product, we suggest that you call and schedule an appointment to talk with one of our Certified Reverse Mortgage Professionals… Greg Newman and Michael Markoff can be reached at 856-797-3434.
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*This material is not from HUD or FHA and has not been approved by HUD or a government agency.