Many clients who are retired—or close to it—want to stay invested and have the available cash to live the lifestyle they desire. Many of these clients will choose a HELOC to get the cash they need—and although a HELOC can be a good financial option for some, it wasn’t designed with seniors in mind. Longbridge Platinum was.
More cash than a HECM.
More flexibility than a HELOC.
A Longbridge Platinum proprietary reverse mortgage can help your older adult clients with higher home values unlock more of their home equity than a traditional Home Equity Conversion Mortgage (HECM).
That means more opportunities for you—giving you a competitive edge you can use to better serve senior clients. Platinum features:
- Loan amounts up to $4 million3
- Wide range of eligible home values
- Attractive low-rate options
- Borrower never owes more than the home is worth when it’s sold and the loan is repaid
- Expanded eligibility for condos
- Lower minimum borrower age requirement than a HECM: 55 years2
Compared to a HELOC, a Platinum LOC1 features greater flexibility and fewer restrictions for clients:
- A reusable line of credit1
- No mortgage insurance premiums (MIP), which may mean lower upfront costs
- Comparable rate
- Monthly mortgage payments optional (keeping current with property taxes, insurance, and maintenance required)
Age Qualifications Expanded
Now open to more clients: age 55+2
Free Online Calculator Tools
Our easy-to-use calculators require no registration or personal information.
|PLATINUM LINE OF CREDIT1 VS. STANDARD HELOC: A CLOSER
|Both types of loans allow your clients to own and keep the title of their homes4
|No monthly mortgage payments required4
|Requires monthly mortgage payments
|Clients can deduct the interest, if optional payments are made
|Clients can deduct the interest5
|Payoff and redraw
|Clients can access up to 75%6 of the Principal Limit during the first 10 years—with the ability to redraw repaid principal amounts
|Clients can pay off and redraw during the first 10 years, but there may be a penalty
|None, as long as clients meet the terms of the loan and remain in
|Typically comes due after 10 years
|No penalty for early repayment
|Prepayment penalties can be charged in some cases—ask the lender
|Non-recourse loan protection
Clients and their heirs can never owe the lender more than the home is worth at the time of its sale.
|No such protection
|Independent, Platinum-approved counseling helps clients fully understand their options
|No independent counseling provided
|Clients must be homeowners age 55+2 and use the home as their primary residence
|Clients must qualify based on credit score and income
Put the power of Platinum to work for your clients now—and keep their investments working longer.
By incorporating a retirement strategy specifically for clients with higher-value homes, you can help them unlock their home equity and extend the life of their retirement assets.
Clients can reap all the benefits of a reverse mortgage, and leave higher-performing investments to grow over time—while using the proceeds to:
- Eliminate monthly mortgage payments4
- Generate a lump sum that’s tax-free7 to use for home renovations or repairs, medical expenses, and more
- Use the line of credit option to set up a financial “safety net” for the future
- Refinance an existing reverse mortgage to get more available cash
- Buy a house or condo that’s a better fit for their retirement needs
Platinum delivers a long list of borrower benefits:
- More available cash as compared to a traditional HECM
- Fixed-Rate Program for clients looking for a full-draw loan at a low, fixed rate
- NEW Line of Credit Program for clients who want some upfront cash now—and a reusable line of credit for the future
- Attractive low-rate options
- No mortgage insurance premium = lower upfront costs
- Non-recourse protection = no personal liability
- Greater flexibility and fewer restrictions
- Expanded eligibility for condos
- Streamlined approval process
Answers to common questions clients ask about Longbridge Platinum.
Yes. They retain the same ownership and title that they have today, as long as they keep current with property taxes, homeowners insurance, and home maintenance. Just like a traditional “forward” mortgage, the lender simply puts a lien on the property—which is paid off when the clients sell their home, or when the last borrower no longer lives in it. Heirs can inherit the house, just as they would with any other mortgage, and can decide how to repay the loan.
They can use it in any way they wish. It’s non-taxable and typically does not affect Social Security payments. We always recommend that clients talk to their advisors to determine the effect on any other benefits they may be receiving, especially when receiving a large lump sum from a reverse mortgage at closing. Having excess funds in their account could impact eligibility for certain government benefit programs.
The loan comes due when the borrower 1) sells the property; 2) no longer lives in the home as their primary residence; or 3) if they fail to meet one of the requirements of the loan—such as paying property taxes, homeowners insurance, and home maintenance.
Since they retain the title to their home, they also retain their obligations as a homeowner—such as paying property taxes and insurance, and any other assessments that may be applied to their property (e.g., homeowners association fees).
Yes—after the balance of their Longbridge Platinum reverse mortgage is paid off, any remaining equity goes to their heirs. That amount will depend on a number of variables, such as loan balance, how long they stay in their home, how much the home appreciates in value, and other factors.
- Line of credit option is not available in some states. Please ask your loan originator if your state is eligible and for more details.
- Available to borrowers as young as 55 in select states only. Higher minimum age requirements may apply.
- The state of MA has a maximum loan amount/lending limit of $2,000,000.
- Keeping current with real estate taxes, homeowners insurance, and property maintenance required.
- Depending on the use of the proceeds.
- Except for the first 25% taken at closing.
- Clients should consult a financial advisor and appropriate government agencies for any effect on taxes or government benefits.
- Loan amount is determined by property value, borrower’s age, and interest rate.