Longbridge Financial Review

Most Transparent Loan Process

Longbridge Financial is a full-service loan company that specializes in reverse mortgages. A reverse mortgage allows seniors to gain access to the cash value of their home to spend during their retirement. One of the most important things to remember about a reverse mortgage is that seniors can continue to live in their homes until they choose to move. These mortgage products require no monthly repayment and let seniors cash out their equity to meet their current financial needs. Longbridge Financial offers lots of information about reverse mortgages and guidance about which loan type might be best based on an individual’s personal financial situation. 

The company’s transparent marketing and clear information about these loans make it one of the best reverse mortgage companies available. 

Overview of Longbridge Financial

Longbridge Financial is a lending company focused on customer satisfaction and providing reverse mortgages to seniors after retirement. Longbridge Financial was founded by an Ivy League professor and a highly experienced financial team with the goal of extending transparency and peace of mind to seniors. 

What Fees Does Longbridge Financial Charge?

With Longbridge Financials’ reverse mortgage, some of the most common costs include a loan origination fee — which can’t exceed $6,000 for home equity conversion mortgage loans — closing costs and mortgage insurance premiums. There may also be a nominal fee for required mortgage counseling. It’s impossible to determine the exact amount you might owe for a reverse mortgage loan without access to your personal information, but all these fees may be taken out of the reverse mortgage loan. 

A reverse mortgage loan accrues interest over the life of the loan, so the loan balance grows over time. These costs are usually paid when the home is sold as part of an estate or the owners move into a nursing home or other long-term care community. 

Full Review of Longbridge Financial’s Features

As a full-service lending company, Longbridge Financial streamlines the process of obtaining funds via home equity. Loan professionals help you determine what type of loan is a good fit for your financial situation and how to handle the process. Longbridge Financial has several types of reverse mortgages, including the Platinum Private Reverse Mortgage, Adjustable Rate Home Equity Conversion Mortgages and Fixed Rate HECMs. 

Longbridge Platinum Private Reverse Mortgage

If you own a single-family home or condo that has a value in excess of $970,800, and you want a loan amount higher than that amount, the Longbridge Platinum Private Reverse Mortgage might be what you need. Government-regulated reverse mortgages cap the loan amount at $970,800, which may be only a fraction of what a high-value home is worth. Additionally, with a Platinum Private loan, you can get the entire loan value in a lump sum in the first year. With traditional HECM, you’re limited to approximately 60% of the full loan amount in the first year.

Private Mortgage Insurance

With HECMs, you’re required to carry mortgage insurance on the loan and pay applicable fees and premiums. With a private mortgage, insurance is optional and available from the company of your choice. 

No HUD Counseling Required

HUD counseling is a fee-for-service option that is required for traditional HECM loans. With a private loan, you still get counseling provided by Longbridge and will be advised to seek independent counseling, but you get to make the final decision. 

High Maximum Loan Amounts

While a traditional HECM caps at under $1 million, with a private platinum loan, you can get up to $4 million. 

No Origination Fees

Origination fees for a traditional HECM are $6,000 or less, but with this loan from Longbridge, there are no origination fees and no monthly service fees. 

Quick and Streamlined Approvals

The Longbridge Financial process allows you to close on a loan within 45 days provided there are no issues with the title to your home. 

Transparent Qualification Requirements

To qualify for a platinum private loan, you must: 

• Be at least 62 years old
• Own a high-value property with all or most of the mortgage already paid
• Meet with a licensed counselor
• Pass a financial assessment and credit check
• Live in the property for which you want a reverse mortgage

Adjustable-Rate HECM

Longbridge Financial is FHA-licensed to offer traditional HECM reverse mortgages. Its adjustable-rate options help you take advantage of historically low interest rates, keeping the total cost of your loan as low as possible. 

More Flexible Financing

With an adjustable-rate HECM, you have more options when it comes to cashing out your equity. You can take a lump sum payout that’s equal to about 60% of what your home is worth up to a maximum loan amount of $726,525. Another option is to take some of the money in a lump sum and open a line of credit to handle other expenses as they crop up. You can also choose to receive your loan in monthly installments for extra income or any combination of these cash-out options that makes sense for you. 

Non-Recourse Loans

All HECM loans are non-recourse loans, which means that you and your heirs never owe more than the value of your home. Even if the total loan principal does creep past the assessed value, your heirs can’t be billed for the difference since the loan is FHA-insured. 

Fixed-Rate HECM

A fixed-rate HECM has all the same regulations as an adjustable-rate loan, but you’ll typically get a lower interest rate for the life of the loan. While you do have to take all the money in one lump sum, you don’t have to max out your home value to take out a fixed-rate HECM. You control how much of a loan you take when you apply for a reverse mortgage. 

Who Should Consider Longbridge Financial’s Reverse Mortgages?

Seniors Struggling with a Mortgage

If you have an existing mortgage on your home that’s almost paid off, a reverse mortgage might be a great way to improve your cash flow. A mortgage that was affordable while you were working might be more difficult to afford after retirement. With a reverse mortgage, you can pay off your loan and avoid making new mortgage payments since none are required with a reverse mortgage. 

Seniors Opting for Early Retirement

If you retire a little early and need some extra funds to help tide you over until you’re eligible for full Social Security benefits, a reverse mortgage can be a great option. Reverse mortgages are available for seniors aged 62 and older, making it possible for you to use your home equity to bridge the gap between 62 and your official retirement date. 

What Are People Saying About Longbridge Financial?

Longbridge Financial has an excellent reputation in an industry that often gets negative press. Its customer service and transparency are what customers appreciate, time and again. Lenders regularly praise the Longbridge team for its attention to detail, availability and patience. While some borrowers noted that the process took longer than was ideal, many others mentioned that closing the deal was finished in a matter of weeks, not months. 

Professional, experienced staff members, clear communications, frequent updates and exceptional customer service are all part of the reason that Longbridge Financial maintains a 4.8-star rating on Google Reviews and an A+ with the BBB.

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