Longbridge Financial, LLC is a corporation headquartered in Latest Jersey that offers FHA-insured reverse mortgage products to Americans 62 and older. The company also offers jumbo proprietary reverse mortgages for homes which could 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. As long as the borrower stays in the home and meets certain criteria, they may not be obligated to repay the loan. Reverse mortgages change into due when the borrower moves out of the house or dies.

Best reverse mortgage lender for pricing

We chosen Longbridge mainly because of its favorable pricing. In our research, Longbridge consistently offered rates on the lower end of the spectrum. That said, rates fluctuate on daily basis based on market conditions, and we cannot guarantee this may occasionally in any respect times be the case.

Longbridge’s website also offers worthwhile educational materials to help 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 many lowest rates amongst all 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 just, your spouse, a co-borrower or your estate might need to repay when the loan becomes due.

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

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

Informative website with educational resources

Reverse mortgages generally is a fancy subject to understand. While they can be an outstanding financial tool in some situations, they may not be for everyone. Longbridge offers comprehensive, plainspoken and user-friendly educational materials on its website, covering all facets of the reverse mortgage process. Furthermore, they provide a free information kit you’ll have the option to request.

Quite a lot of the topics addressed are what’s a reverse mortgage, reverse mortgages vs. other home equity products, what you’ll want to use a reverse mortgage for, and a chunk addressing concerns of adult children and family members of the potential borrower.

Stays your servicer after closing

It’s common for mortgage lenders to sell servicing rights to other lenders. This transfer can be confusing to customers within the event that they’ve already change into accustomed to coping with the unique company and its way of doing things. When you get a reverse mortgage with Longbridge, you’ll proceed to do business with the company 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 standard 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.

Furthermore, 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 increasingly thoroughly be a dealbreaker for a lot of who want face-to-face interaction before making a big financial decision. Nevertheless, this may occasionally not be a problem in case you’re comfortable communicating over the phone or online.

55+ loans won’t be available in every state

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

Longbridge reverse mortgage offerings

HECM reverse mortgage

The home equity conversion mortgage (HECM) is the standard reverse mortgage product insured by the Federal Housing Administration. Longbridge offers fixed and variable rate options. The way in which you receive your funds can depend on the alternative you choose. It’s also essential to have in mind that if there stays to be a balance on the current 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 in any respect 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 home’s appraised value.

This generally is a useful option for a lot of who’re in need of an enormous infusion of cash for a specific purpose. If you find yourself looking out for more varied disbursement options, the variable rate option may very well 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 benefits in the best way by which of disbursement options and interest charges.

With the variable option, you’ll have the option to pick out a lump sum, monthly or term payment, a line of credit, or a combination of any of those. This flexibility is correct for ongoing home improvements. You most likely 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 amount you withdraw, and there aren’t any obligatory payments. Furthermore, the price 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 help purchase it. This feature is correct for older adults looking for to downsize or secure a house more in line with their current needs, while also cutting costs. Because the reverse mortgage is used to pay for the home, relatively than buying the home first after which getting a reverse mortgage, borrowers incur only one set of closing costs.

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

After this initial payment, the setup is akin to a traditional HECM for purchase. You won’t must make monthly payments as long as you stay current on property taxes, maintenance and insurance. The reverse mortgage balance is due when the last surviving homeowner leaves the home 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 usual HECM reverse mortgage. It could be disbursed as a lump sum or line of credit.

Jumbo reverse mortgages won’t be backed by the FHA, because of this fact the danger is incurred by Longbridge. Nevertheless, these mortgages provide the similar protections as traditional ones. As long as you maintain the property and pay taxes and insurance, you won’t must make monthly payments on your home. Moreover, your heirs won’t be chargeable for the balance, even when the loan amount exceeds the home value.

Longbridge reverse mortgage pricing

Reverse mortgage fees will differ based on the lender you associate 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 search out out your home’s market value, which in turn will dictate your reverse mortgage amount. The appraiser will even check if your home meets the minimum HUD property standards. If not, repairs may very well be needed, leading to 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, much like 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 first $200,000 and as much as 1% of the home’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 could also be additional closing costs, so it’s vital to confirm the fees with Longbridge The company 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 moving into with a reverse mortgage. The session typically costs $125, even though it could sometimes be waived based on the person’s financial situation.

Rates of interest

Rates of interest on reverse mortgages change on daily basis. To seek out out the speed you would possibly expect, seek the recommendation of your lender. Keep in mind that the fixed rate of interest option on a reverse mortgage only allows for a lump sum of 60% of the home’s value. The adjustable rate, though variable, offers more disbursement options and charges interest only on the amount 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 means Longbridge is a dependable selection since 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 standard criteria. Firstly, applicants needs to be 62 or older. They should either own their homes outright or possess significant equity in them, with the property serving as their primary residence. Moreover, the home needs to 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 company also offers a free information kit you would request. To get it it would be best 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. Furthermore, all complaints filed with the BBB have been addressed and resolved by the company.

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

Longbridge may also be a member of the National Reverse Mortgage Lenders Association (NRMLA), an organization 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 advantages for homeowners.

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

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

Summary of Money’s Longbridge reverse mortgage review

Longbridge stands out amongst the various best reverse mortgage providers for its competitive pricing, offering low rates and no monthly service fee. The company continues to operate your loan servicer after closing, which can make things considerably easier for older adults.

Furthermore, 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 won’t be available in every state.