New product feature helps older homeowners tap home equity while preserving wealth for heirs as 75% of Boomers plan to leave homes to family and hold $14 trillion in equity
Longbridge Financial LLC, a leading national reverse mortgage lender and servicer, announced the launch of Platinum Preserve, a first-of-its-kind feature for the company. The offering is available on its Platinum Max loans, a proprietary, non-Federal Housing Administration reverse mortgage program for homeowners age 55 and older 3. This new feature is designed to help senior homeowners tap into their home equity now while reserving a portion for future needs, offering a balanced approach to immediate and long-term financial planning.
“Older homeowners have built up nearly $14 trillion in home equity 2, yet many are hesitant to tap into it because they want to use some of that wealth for their families or future healthcare needs,” said Chris Mayer, CEO of Longbridge Financial. “A 2024 Freddie Mac survey found that 75% of Baby Boomer homeowners plan to leave their home or its value to their children or heirs 1. Other homeowners may want to preserve some portion of their home equity to downsize, pay for future health care needs, or give money to a charity that is important to them.
“We designed Platinum Preserve with that in mind — to help retirees unlock some of the equity in their home today, while still preserving a meaningful portion for the future. It offers the best of both worlds: more financial freedom now, while leaving a legacy down the road. Whether they’re looking to pay off an existing mortgage, supplement retirement income, help pay for rising insurance premiums, or simply create some breathing room, borrowers can do it with confidence that they’re not giving up what matters most.”
Key Benefits of Platinum Preserve Include:
- Fixed-Rate Reverse Mortgage with Equity Protection
Senior homeowners may have the opportunity to benefit from a more stable, fixed interest rate while maintaining access to a portion of their home equity. This feature is designed to support flexible financial planning by allowing borrowers to access only the funds they choose to use, rather than borrowing the full amount for which they may be eligible, as is often the case with many reverse mortgage products. This may offer a suitable option for individuals seeking financial flexibility and aiming to retain home equity for future needs or potential inheritance. - Cost-Effective Alternative to HECMs, Without Upfront IMIP Costs
Unlike traditional Home Equity Conversion Mortgages (HECMs), this option eliminates the need for upfront Initial Mortgage Insurance Premiums (IMIP), helping to significantly lower the cost of accessing home equity. Borrowers can benefit from a more affordable reverse mortgage solution while still addressing goals such as supplementing retirement income, planning their estate, or funding home modifications. - Protects Equity for Their Estate or for Future Moves or Expenses
This new feature is designed with flexibility in mind, allowing borrowers to reserve a portion of their home’s equity for future life transitions— whether that’s downsizing, relocating, or covering long-term care needs. It also enables thoughtful estate planning, helping to ensure that homeowners can leave a financial legacy while still accessing the support they need today.
Setting aside 10% to 40% of a borrower’s home equity can help provide peace of mind, enabling homeowners to maintain financial control and plan confidently for any future financial needs. Platinum Preserve helps empower individuals to make informed financial decisions without compromising long-term financial goals.
The Platinum suite of reverse mortgage products from Longbridge Financial is designed for homeowners age 55 and older 3 who own a home valued at $450,000 or more. Key benefits include no required monthly mortgage payments, no mortgage insurance premium, and non-recourse protections. Platinum reverse mortgage borrowers must continue to pay property taxes, insurance and maintain the home.
Platinum offers two options to meet a range of financial goals: a single-draw, fixed-rate loan and a reusable line of credit 4. Compared with the FHA-insured Home Equity Conversion Mortgage (HECM), Longbridge Platinum products feature higher available proceeds, a streamlined approval process, more flexible requirements for condominium owners, and the potential for higher loan-to-value ratios for select borrowers.
The newest option, Platinum Preserve, launches today in Alabama, Arizona, California, Colorado, Connecticut, Florida, Georgia, Hawaii, Idaho, Missouri, Montana, Nevada, New Hampshire, New Jersey, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Carolina, Utah and Virginia, with availability in additional states coming soon.
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