1. In 2012, a number of people felt a big burden taken out of their shoulders, states liberty
reverse mortgage. Many people lived in the same home for 20 years; however, they
found them struggling to pay the bills because of their existing mortgage payment.
Therefore, they did some studies and opted for an Oklahoma reverse mortgage and
learned how reverse mortgage works.
Many people wish to know the secret of how reverse mortgage works to remove
financial burden on them since years ago. Liberty reverse mortgage states, “A big load
has been lifted off the shoulders. Especially for the retiree who had to work to make
ends meet because they had a house payment. Now, not having a house payment is a
huge relief for them.”
Based on liberty reverse mortgage, reverse home mortgages are a good way for seniors
to acquire extra cash out of the equity in their houses.
A reverse mortgage lets homeowners 62 years and older and convert part of the equity
in their homes into tax-free cash without having to sell the home, give up title, or take
on a new monthly mortgage payment. Rather than making monthly payments to a
lender as with a regular mortgage, a lender makes payments to the homeowner, either
monthly or as a lump sum.

2. A reverse mortgage loan could be a fantastic option for seniors who are on fixed
incomes and stressed for money, who have surprising expenses, or who simply want to
take pleasure in retiring with a little additional spending cash.
“Also, a good use is the purchase of long-term care insurance or to pay for in-home
care,” says loans and mortgage experts. “Also, if the house is in need of some repairs to
last to the end of their life or they have some high-cost debt that needs paid off.”
So how does it work?
A reverse mortgage is like a regular mortgage in that a lender gives you money.
However, it has based on several qualities, including your age, how much equity you
have in your house and the appraised value of your home.
Those who got a reverse mortgage reveal their experiences. They said, "They got it
since it eliminated their monthly mortgage payment that was a great benefit for them
because now they are able to meet all their expenses. They were on fixed income, and
so, to have that mortgage off is something else.
One of the biggest advantages to a reverse mortgage is that, unlike a home equity loan,
you do not need to meet an income or credit qualification a bonus for seniors who are
not working.

3. How to qualify?
To qualify for a reverse mortgage, you must be at least 62 years old. If there are two
people in a house, the youngest must be at least 62. You also must own and reside in
the home, and take part in consumer education from a HUD-approved counselor.
It is a simple process, in that once you receive an appraisal and get an inspection; you
go through the underwriting process like a standard mortgage. There are many forms
to sign, but that is about the most work you have to do.
How much will I get?
The amount of money you will receive depends on several factors. The older you are,
the more money you will get. The interest rate plays a factor, as does the appraised
value of your home.
The reverse mortgage first goes toward paying off any remaining balance on your
traditional mortgage, so the more equity you have, the more money you will get in
your pocket.
Experts recommend the option only for homeowners who have at least 50 percent
equity in their home. Once you pay off your remaining mortgage, you can receive the
money in regular monthly payments, as a line of credit or in a lump sum.

4. People take the lump sum because it was a good advantage because they could
pay off many outstanding bills. They said they took the lump sum as well, and put
it in a money market account, in case down the road they have emergencies.
There is mortgage insurance required on the reverse mortgage that covers the
lender if the loan is not repaid. A homeowner with a reverse mortgage must
ensure that taxes and insurance are kept current at all times. If either taxes or
insurance lapse, it could result in a default on the reverse mortgage.
The end of the loan
If you want to sell your home that has a reverse mortgage, your first duty is to the
lender.
“The loan would have to be paid off prior to the closing,” said experts. “The lender
has a lien on the property, and the seller needs to understand the payoff at that
time, prior to selling.” Therefore, if you decide to sell your home, you first pay off
the reverse mortgage amount. If there are proceeds remaining, you get to keep
those.
If you pass away, and the home is left to heirs, they can either refinance the house
with a traditional mortgage, or sell the house to pay the reverse mortgage. In both
cases, if the value of the house has dropped below the reverse mortgage amount,
the bank absorbs the costs.

5. The loan is non-recourse, meaning if you cannot pay it back in the end, there is no
recourse to you or your family to pay it back if you have met the terms of the loan.
One critique for Oklahoma reverse mortgage and how does it works is the situation
for heirs.
The biggest negative that most people consider is that they might not have any
estate to leave to their children, said experts from liberty reverse mortgage.
However, if they are pursuing a reverse mortgage anyway for necessities, that
should be the furthest thing from their mind.
To understand more information on reverse mortgage pros and cons check out -
www.liberty-reversemortgage.com
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mortgage-secrets-revealed-liberty-reversemortgage-com