Liberty Home Equity Solutions
Liberty Home Equity Solutions, one of the best known reverse mortgage lenders out there, has a very simple motto –
“Securing Financial Independence With Home Equity”. It’s a catchy slogan, and it touches on why many seniors choose a HECM, which is to tap into the home equity that they’ve accumulated over a lifetime of responsible home ownership.
Liberty’s history goes back to its founding in Sacramento, California in 2003. Since then, this lender has undergone two major ownership changes. First, it was purchased by Genworth Financial, an insurance company best known for its long-term care and life policies. Ocwen Financial Corporation, the mortgage servicing giant, purchased Liberty Home Equity in 2013.
Of course, you may also know Liberty from its television commercials starring the actor Robert Wagner. He’s a sentimental favorite of ours, and these ads appear to be working, as the lender often clocks in as one of the top reverse mortgage lenders out there.
What is a Reverse Mortgage
Let’s back up for a second and clarify a bit of terminology. The vast majority of reverse home loans are part of the Home Equity Conversion Mortgage program (often abbreviated HECM), a program insured by the Federal Housing Administration (FHA). You must be 62 or older and have significant equity in your home to qualify.
The amount that you can borrow is largely determined by three factors. Number one is your home’s appraised value. The higher the value, the more you can borrow. Second is your age. According to HECM guidelines, older homeowners are eligible to receive larger amounts. Finally, there’s the interest rate, something that you are likely familiar with from the forward home loan that you once took out. With a reverse mortgage, a higher interest rate does not mean higher monthly payments but instead means that you are eligible to borrow less.
There are costs to a reverse mortgage as well. The largest are origination fees, mortgage insurance premiums, and closing costs. Origination fees are paid to your lender as compensation for originating your loan. It’s regulated by the HECM guidelines and varies based on home value and lender policy. Some lenders do not charge the maximum amount that they are allowed, and we recommend that you seek these lenders out.
More About Liberty
As of this writing, Liberty Home Equity is accredited with the Better Business Bureau of Northeast California and is a member of the National Reverse Mortgage Lenders Association, or NRMLA. Liberty has an A+ rating with the BBB.
A few of the company’s major competitors are One Reverse Mortgage (owned by Quicken Loans), American Advisers Group, and Security One Lending. If you want to contact Liberty Home Equity Solutions, you can find them on the web at http://libertyreversemortgage.com/.