Longbridge’s new reverse mortgage is intended to maintain the equity for heirs
“This new function is intended to help senior homeowners to tap their own capacity now, while reserving a part for future needs and offering a balanced approach for immediate and long -term financial planning,” the company said on Tuesday when announcing the product.
Longbridge CEO Chris Mayer discussed part of the dynamics that led to the development of the product. This includes the restraint of older homeowners that often made to expression to use the pension when pension pension for fear that it limits the assets they can leave their heirs.
“Older homeowners have built up almost $ 14 trillion in equity, but many hesitate to use it because they want to use part of that wealth for their families or future health care needs,” said Mayer.
“A 2024 Freddie Mac Research showed that 75% of Baby Boomer’s homeowners are planning to leave their homes or its value to their children or heirs. Other homeowners may want to retain part of their equity to reduce, pay for future needs in health care or to give money to a charity that is important to them. “
To this end, the new reverse mortgage product Longbridge will enable the senior cohort to offer an option to tap part of the equity in their homes, while “still retains a meaningful part for the future,” said Mayer.
“Whether they want to pay to pay an existing mortgage, to supplement pension income, to help pay for rising insurance premiums or just create a breathing space, borrowers can do with confidence that they do not give up what is the most important,” he said.
Platinum Preserve is a reverse mortgage with a fixed interest rate that gives borrowers the option to choose the amount of the proceeds from the loan to which they have access, in contrast to the full amount of the proceeds. The loan also does not hold the mortgage insurance premium, which according to Longbridge can lower the costs.
“Putting 10% to 40% of the equity of a borrower can help to offer peace of mind, allowing homeowners to maintain financial control and plan with confidence for future financial needs,” said the company of the new product.
This flexibility can make some financial planning possible by using a reverse mortgage “without endangering financial goals in the long term.”
Platinum Preserve was launched on Tuesday with availability in 21 states: Alabama, Arizona, California, Colorado, Connecticut, Florida, Georgia, Hawaii, Idaho, Missouri, Montana, Nevada, New Hampshire, New Jersey, Oklahoma, Pennahoma, Pennahoma, Pennsylvania Virginia.
The company said that rollouts in extra states are planned for the future.
