Platinum Preserve: Help Clients Access Equity Now – And Preserve Some for the Future
Platinum Preserve (available on Platinum Max products) is an innovative feature that allows clients to set aside 10-40% of their home equity for future needs, like estate planning or a potential move. It's the perfect solution for those seeking flexibility and security – and a valuable way for your business to stand out.
Platinum Line of Credit:2 Your go-to HELOC substitute for seniors.
Did you know that for every senior who chooses a reverse mortgage, nearly 11 seniors choose a HELOC as a financing alternative?3
Our Platinum Line of Credit Program2 offers clients with higher home values more cash than a HECM and more flexibility than a HELOC—giving you more opportunities. It’s the competitive edge you need to better serve more clients.
As compared to a HELOC, a Platinum Line of Credit2 features:
- A reusable line of credit, up to 75%4
- Low upfront costs
- Comparable rate
- Easier income qualification
- No monthly mortgage payments required—clients must keep current with property taxes, homeowners insurance and home maintenance
- Similar borrower benefits and safeguards to a standard reverse mortgage program
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PLATINUM LINE OF CREDIT2 VS. STANDARD HELOC: A CLOSER COMPARISON.
| Similarities | ||
|---|---|---|
| Platinum LOC | Standard HELOC | |
| Own and keep title of the home? | Yes5 | Yes |
| Must pay taxes and insurance? | Yes | Yes |
| Can deduct interest? | Yes, if optional payments are made | Yes |
| Can pay off and re-draw? | Yes, up to 75%4 | Yes, but there may be a penalty |
| Ten-year draw period? | Yes6 | Yes |
| Credit line can be cut off by lender? | Only under specific circumstances | Yes, at any time |
| Rate adjusts regularly? | Every month | Every month |
AND HERE’S WHERE PLATINUM GIVES CLIENTS THE GOLD:
| Differences | ||
|---|---|---|
| Platinum LOC | Standard HELOC | |
| Penalty for early payoff? | No penalty | Yes, depending on the program |
| Monthly mortgage payments required? | No monthly mortgage payments required5 | Yes |
| Non-recourse loan protection? | Yes | No |
Offer clients more options:
- Longbridge Platinum: our non-Federal Housing Administration (FHA) reverse mortgage program for borrowers aged 55 and older1 with high-value homes or condominiums that may not qualify for a HECM
- Fixed-Rate Program: for clients looking for a full-draw loan at a low, fixed rate—available for home values starting at $450,000
- Line of Credit Program:2 for clients who want some upfront cash now—and a reusable line of credit for the future
While you enjoy exclusive Platinum advantages:
- Servicing website for all loans, to give clients exceptional service even after closing
- Improved compensation
- The PAA Advantage: flexible pricing and the ability to set your own origination fee7 to maximize your success
- Open-ended Line of Credit, offering more pricing options for Brokers than closed-end products, including the ability to charge origination fees
- Simple structure and streamlined approval process
- More flexibility and options to help you serve more clients
Platinum delivers a long list of borrower benefits:
- More available cash as compared to a traditional HECM:
- Loan amounts up to $4 million8
- Widest range of eligible home values
- Attractive low-rate options.
- No mortgage insurance premium = lower upfront costs.
- Non-recourse protection.
- Greater flexibility and fewer restrictions.
- Less stringent eligibility requirements for condos.
- Platinum Peak: Maximize home equity with access to great PLFs and proceeds.
- Platinum Preserve: Ability to secure 10-40% of home equity for future needs (available for Platinum Max products).
- Platinum Promise: Protects the borrower’s Principal Limit Factor (PLF) for 30 days from the application date. If market changes reduce the PLF and the borrower chooses not to proceed, Longbridge will reimburse their third-party fees—plus $150.9
Contact An Account Executive today.
- Available to borrowers as young as 55 in select states only. Higher minimum age requirements may apply.
- Borrowers who elect a fixed rate loan will receive a single disbursement lump sum payment. Other payment options are available only for adjustable rate mortgages.
- 2016 Survey of Consumer Finances, The Urban Institute, November 2017.
- Clients can access up to 75% of the Principal Limit during the first 10 years—with the ability to redraw repaid principal amounts — except for the first 25% taken at closing.
- Keeping current with property taxes, homeowners’ insurance, and home maintenance required.
- If part of your clients’ loan is held in a line of credit, they can draw from it for a period of 10 years.
- Applies to lenders only. Restrictions apply.
- The state of MA has a maximum loan amount/lending limit of $2,000,000.
- This is not an interest rate lock. Platinum interest rates float until closing. Longbridge, in its sole discretion, may change the PLF tables used for the loan at any time. If your client closes within 30 days from the date of application, we will strive to use the original PLF table set on the date of application. If Longbridge revises the PLF table within the 30-day period due to unforeseen market conditions, we will notify you and your client. The Platinum Promise means that should your client decide not to move forward, Longbridge will offer a refund of your client’s out-of-pocket third-party fees (appraisal fee(s)) plus $150.00. To qualify for reimbursement, the loan must be approved, and all underwriting criteria, obligations, and conditions of the loan must be met. While in most circumstances we will be able to give the client time to close the loan under the original PLF table, this may not always be feasible due to factors such as adverse changes in market conditions. Additional terms and conditions may apply. Longbridge Platinum is not available in all states.
Longbridge Platinum Reverse Mortgage (“Platinum”) is Longbridge Financial, LLC’s proprietary loan program and is not affiliated with the Home Equity Conversion Mortgage (HECM) loan program, which is insured by FHA. Platinum is available to qualified borrowers who also may be eligible for FHA’s HECM program or are seeking loan proceeds that are higher than FHA’s HECM program limit. Platinum currently is available only for eligible properties in select states. Please contact your loan originator to see if it is currently available in your state.
