Our NEW Platinum Line of Credit Program offers clients with higher home values more cash than a HECM and more flexibility than a HELOC—giving you more opportunities. It’s the competitive edge you need to better serve more clients. Check out our case study library to learn more about the many ways clients can benefit from Platinum.
As compared to a HELOC, a Platinum Line of Credit features:
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PLATINUM LINE OF CREDIT VS. STANDARD HELOC: A CLOSER COMPARISON.
|Platinum LOC||Standard HELOC|
|Own and keep title of the home?||Yes||Yes|
|Must pay taxes and insurance?||Yes||Yes|
|Can deduct interest?||Yes, if optional payments are made||Yes|
|Can pay off and re-draw?||Yes, up to 75%3||Yes, but there may be a penalty|
|Ten-year draw period?||Yes||Yes|
|Credit line can be cut off by lender?||Only under specific circumstances||Yes, at any time|
|Rate adjusts regularly?||Every 3 months||Every month|
AND HERE’S WHERE PLATINUM GIVES CLIENTS THE GOLD:
|Platinum LOC||Standard HELOC|
|Credit line grows over time?||Yes5||No|
|Penalty for early payoff?||No penalty||Yes, depending on the program|
|Monthly mortgage payments required?||No monthly mortgage payments required4||Yes|
|Non-recourse loan protection?||Yes||No|
Offer clients more options:
- Longbridge Platinum: our non-Federal Housing Administration (FHA) reverse mortgage program for borrowers with high-value homes or condominiums that may not qualify for a HECM
- Fixed-Rate Program: for clients looking for a full-draw loan at a low, fixed rate
- NEW Line of Credit Program: for clients who want some upfront cash now—and a reusable, growing line of credit for the future
While you enjoy exclusive Platinum advantages:
- Servicing website for all loans, to give clients exceptional service even after closing
- Improved compensation
- The PAA Advantage: flexible pricing and the ability to set your own origination fee6 to maximize your success
- Open-ended Line of Credit, offering more pricing options for Brokers than closed-end products, including the ability to charge origination fees
- Simple structure and streamlined approval process
- More flexibility and options to help you serve more clients
Platinum delivers a long list of borrower benefits:
- More available cash as compared to a traditional HECM
- Loan amounts up to $4 million
- Widest range of eligible home values
- Attractive low-rate options
- No mortgage insurance premium = lower upfront costs
- Non-recourse protection
- Greater flexibility and fewer restrictions
- Less stringent eligibility requirements for condos
1 2016 Survey of Consumer Finances, The Urban Institute, November 2017.
2 State exclusions apply.
3 Clients can access up to 75% of the Principal Limit during the first 10 years—with the ability to redraw repaid principal amounts — except for the first 25% taken at closing.
4 Real estate taxes, homeowners insurance, and property maintenance required.
5 If part of your clients’ loan is held in a line of credit, they can draw from it for a period of 10 years—the unused portion will grow each month for 7 years, at an annual rate of 1.5% compounded monthly.
6 Applies to lenders only.