Longbridge’s new reverse mortgage aims to preserve home equity for heirs

“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,” the company said Tuesday when announcing the product.

Chris Mayer

Longbridge CEO Chris Mayer discussed some of the dynamics that led to the product’s development, including the often-expressed reluctance of older homeowners to tap into home equity in retirement out of fear that it will limit the assets they can leave their heirs.

The new reverse mortgage product will allow Longbridge to offer the senior cohort an option to tap some of the equity in their homes while “still preserving a meaningful portion for the future.”

Platinum Preserve is a fixed-rate reverse mortgage that gives borrowers the option to choose the amount of loan proceeds they can access, as opposed to accessing the full amount of proceeds. The loan also does not maintain an upfront mortgage insurance premium, which can bring the costs down, according to Longbridge.

Platinum Preserve launched Tuesday with availability in 21 states: 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.