Longbridge Financial, LLC is an organization headquartered in Latest Jersey that gives FHA-insured reverse mortgage products to Americans 62 and older. The corporate also offers jumbo proprietary reverse mortgages for homes which might be valued above the FHA established limit.

Reverse mortgages, or Home Equity Conversion Mortgages (HECM), are loans available to older adults who own their home or have a small remaining mortgage balance. These loans allow homeowners to access their home equity. So long as the borrower stays in the house and meets certain criteria, they will not be obligated to repay the loan. Reverse mortgages change into due when the borrower moves out of the home or dies.

Best reverse mortgage lender for pricing

We chosen Longbridge mainly due to its favorable pricing. In our research, Longbridge consistently offered rates on the lower end of the spectrum. That said, rates fluctuate every day based on market conditions, and we cannot guarantee this may at all times be the case.

Longbridge’s website also offers worthwhile educational materials to assist borrowers and their families make informed decisions about this financial product.

Longbridge reverse mortgages pros and cons

Pros explained

Favorable pricing

Longbridge offers among the lowest rates amongst all of the reverse mortgage providers we reviewed. Unlike regular forward mortgages, with a reverse mortgage, you don’t must pay the interest until the loan matures. Subsequently, a lower rate of interest means a reduced amount that you just, your spouse, a co-borrower or your estate might want to repay when the loan becomes due.

Rates of interest also figure into how much you’ll be able to borrow in the primary place, along together with your age and residential value. The lower the speed, the more you might be eligible for. This is essential to take into accout as different lenders feature different rates.

Moreover, Longbridge doesn’t charge a monthly loan servicing fee like many other reverse mortgage providers. The corporate also has a $500 discount on closing costs for lively duty military servicemembers and veterans.

Informative website with educational resources

Reverse mortgages generally is a complex subject to grasp. While they will be a superb financial tool in some situations, they will not be for everybody. Longbridge offers comprehensive, plainspoken and user-friendly educational materials on its website, covering all facets of the reverse mortgage process. Moreover, they supply a free information kit you’ll be able to request.

A number of the topics addressed are what’s a reverse mortgage, reverse mortgages vs. other home equity products, what you need to use a reverse mortgage for, and a piece addressing concerns of adult children and members of the family of the potential borrower.

Stays your servicer after closing

It’s common for mortgage lenders to sell servicing rights to other lenders. This transfer will be confusing to customers in the event that they have already change into accustomed to coping with the unique company and its way of doing things. While you get a reverse mortgage with Longbridge, you’ll proceed to do business with the corporate for the lifetime of the loan.

Jumbo loans available at age 55

Jumbo reverse mortgages are designed for higher-value properties. As of this writing, the usual reverse mortgage program allows borrowing against properties as much as $1,089,300. In contrast, jumbo reverse mortgages extend this limit to $4,000,000.

Moreover, while traditional reverse mortgages are only available to individuals aged 62 and older, Longbridge’s jumbo loans have a lower age limit of 55.

Cons explained

No branch offices

Longbridge Financial is headquartered in Latest Jersey and operates without physical branches. This may very well be a dealbreaker for many who want face-to-face interaction before making a significant financial decision. Nevertheless, this may not be an issue in case you are comfortable communicating over the phone or online.

55+ loans will not be available in every state

Longbridge jumbo loans are restricted to individuals aged 55 and older, but eligibility varies by state. Unfortunately, the corporate doesn’t provide an inventory of ineligible states. You could contact Longbridge on to see if the jumbo loan product is on the market in your state.

Longbridge reverse mortgage offerings

HECM reverse mortgage

The house equity conversion mortgage (HECM) is the usual reverse mortgage product insured by the Federal Housing Administration. Longbridge offers fixed and variable rate options. The way you receive your funds can rely on the choice you select. It’s also essential to keep in mind that if there remains to be a balance on the present mortgage, the HECM funds must first go to paying that off.

Fixed-rate reverse mortgage

Fixed-rate reverse mortgages provide the peace of mind of at all times knowing what you owe. Nevertheless, they arrive with limitations. Fixed-rate reverse mortgages are somewhat inflexible as they’ll only be disbursed as a one-time lump sum payment of as much as 60% of the house’s appraised value.

This generally is a useful option for many who are in need of a big infusion of money for a selected purpose. When you are on the lookout for more varied disbursement options, the variable rate option could be more suitable.

Variable rate reverse mortgage

Though variable rate reverse mortgages run the danger of your interest rising over the course of the loan, they do include significant advantages in the way in which of disbursement options and interest charges.

With the variable option, you’ll be able to select a lump sum, monthly or term payment, a line of credit, or a mix of any of those. This flexibility is right for ongoing home improvements. You possibly can take an initial lump sum payment for immediate needs and keep the remaining as a line of credit for future projects.

Unlike a house equity line of credit (HELOC), you’re charged interest only on the quantity you withdraw, and there aren’t any obligatory payments. Moreover, the worth of lines of credit can grow over time as interest is applied to the principal.

HECM for purchase

A HECM for purchase involves taking out a reverse mortgage on a FHA-approved home or condo to assist purchase it. This feature is right for older adults seeking to downsize or secure a house more according to their current needs, while also cutting costs. Since the reverse mortgage is used to pay for the house, relatively than buying the house first after which getting a reverse mortgage, borrowers incur just one set of closing costs.

The down payment required for an HECM for purchase is sizable — typically 60%-65% of the brand new home’s cost. This amount can come from the sale of the present home or money available. The reverse mortgage covers the remaining cost, and any additional funds will be used at your discretion.

After this initial payment, the setup is akin to a conventional HECM for purchase. You won’t need to make monthly payments so long as you stay current on property taxes, maintenance and insurance. The reverse mortgage balance is due when the last surviving homeowner leaves the house for 12 months or dies.

Longbridge Platinum

Longbridge Platinum is the name of Longbridge’s proprietary jumbo reverse mortgage loan. Designed for prime value homes and condos, the upper loan limit of this product is $4,000,000, much higher than the standard HECM reverse mortgage. It may possibly be disbursed as a lump sum or line of credit.

Jumbo reverse mortgages will not be backed by the FHA, due to this fact the danger is incurred by Longbridge. Nevertheless, these mortgages provide the identical protections as traditional ones. So long as you maintain the property and pay taxes and insurance, you won’t need to make monthly payments on your house. Furthermore, your heirs will not be chargeable for the balance, even when the loan amount exceeds the house value.

Longbridge reverse mortgage pricing

Reverse mortgage fees will differ based on the lender you go together with, but they typically include origination fees, appraisal fees, and the counseling fee for the session all borrowers must complete beforehand.

Appraisal fee

The appraisal is finished by an independent third-party appraiser to find out your house’s market value, which in turn will dictate your reverse mortgage amount. The appraiser will even check if your house meets the minimum HUD property standards. If not, repairs could be needed, resulting in a second appraisal.

The appraisal fee is roughly $575, and the follow-up appraisal costs around $125.

Origination fee

The origination fee for reverse mortgages, similar to traditional mortgages, covers processing and shutting costs. Because these loans are government backed, the FHA has set specific caps on origination fees. They’re as follows:

• For homes valued at lower than $125,000 or less, the origination fee limit is $2,500.

• For homes value greater than $125,000, the lender can charge as much as 2% on the primary $200,000 and as much as 1% of the house’s value above $200,000, totaling as much as a maximum fee of $6,000.

Closing costs

Closing costs fluctuate based on loan terms, home value and placement. These expenses could include title insurance, state taxes, recording fees and the mortgage insurance premium. There may be additional closing costs, so it is necessary to verify the fees with Longbridge The corporate guarantees transparency and no hidden fees.

Service fee

Longbridge doesn’t charge a monthly servicing fee.

Counseling fee

Reverse mortgage borrowers must complete a counseling session with a HUD-approved counselor. This step ensures customers fully understand their options and what they’re entering into with a reverse mortgage. The session typically costs $125, although it may possibly sometimes be waived based on the person’s financial situation.

Rates of interest

Rates of interest on reverse mortgages change every day. To find out the speed you might expect, seek the advice of your lender. Bear in mind that the fixed rate of interest option on a reverse mortgage only allows for a lump sum of 60% of the house’s value. The adjustable rate, though variable, offers more disbursement options and charges interest only on the quantity borrowed.

Longbridge reverse mortgage financial stability

In June of 2023, DBRS Morningstar confirmed Longbridge Financial, LLC MOR RVO2 rating, categorizing it as “good” and further labeling it as “Stable.” This rating, the agency’s second highest, was granted resulting from Longbridge’s experienced senior staff, profitability, strong loan performance and underwriting team.

In simpler terms, this implies Longbridge is a dependable selection because the servicer of your reverse mortgage, especially in case you go for a line of credit or term disbursement. The rating indicates a high level of trust in Longbridge’s ability to satisfy their financial obligations regarding your loan.

Longbridge reverse mortgage accessibility

Availability

Longbridge’s reverse mortgage eligibility requirements align with the usual criteria. Firstly, applicants should be 62 or older. They need to either own their homes outright or possess significant equity in them, with the property serving as their primary residence. Furthermore, the house should be in good condition and meet the needed property standards.

Prospective borrowers must not have any outstanding federal debts, akin to unpaid taxes or federal student loans. To qualify, applicants must also receive counseling from an agency approved by the U.S. Department of Housing and Urban Development (HUD).

Contact information

Customers can contact Longbridge Financial by phone, email or a web-based form on its website. The corporate also offers a free information kit you could request. To get it you will want to enter your:

• Name
• Address
• Email
• Phone number
• Age
• Estimated house value
• Mortgage balance (if any)

Longbridge’s contact number is 855-LBF-HECM (855-523-4326).

Longbridge reverse mortgage customer satisfaction

Longbridge Financial has been accredited by the BBB since 2013 and maintains an A+ rating. As of October 2023, Longbridge has over 60 reviews, averaging 3.97 out of 5 stars. Moreover, all complaints filed with the BBB have been addressed and resolved by the corporate.

Other than BBB rankings, various online review platforms highlight Longbridge’s commitment to exceptional customer support. Customers often describe their experiences as each skilled and supportive.

Longbridge can also be a member of the National Reverse Mortgage Lenders Association (NRMLA), a company that enforces a strict code of ethics amongst reverse mortgage providers.

How we evaluated Longbridge Financial’s reverse mortgage

In our evaluation of Longbridge Financial, we considered several essential facets, which included:

• Product Offerings: We examined the available reverse mortgage products and their benefits for homeowners.

• Customer Feedback: We checked out the corporate’s customer rankings and variety of complaints..

• Financial strength: We analyzed the corporate’s financial rankings to find out its financial stability.

Summary of Money’s Longbridge reverse mortgage review

Longbridge stands out among the many best reverse mortgage providers for its competitive pricing, offering low rates and no monthly service fee. The corporate continues to function your loan servicer after closing, which may make things considerably easier for older adults.

Moreover, Longbridge provides excellent educational materials on its website, offering comprehensive and user-friendly resources and guiding borrowers through every aspect of the reverse mortgage process.

On the downside, Longbridge doesn’t have physical branches, and their jumbo loan for those 55 and older will not be available in every state.