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CNBC
20-05-2025
- Business
- CNBC
Longbridge Financial reverse mortgage review 2025
Founded in 2012, online lender Longbridge Financial is the third-largest provider of reverse mortgages in the U.S. As of February 2025, it's approved more than $94 million in loans. Longbridge stands out for its lower rates and robust digital presence, which includes a reverse mortgage calculator and an easy-to-use servicing portal. Longbridge is a particularly good option for high-value homes: The Longbridge Platinum offering a line of credit of up to $4 million. Apply for personalized rates HECM reverse, HECM for purchase, Platinum Mortgage (proprietary loan with larger limits and a low age requirement of over 55) No specific minimum equity listed, but generally 50% Offers in this section are from affiliate partners and selected based on a combination of engagement, product relevance, compensation, and consistent online for personalized ratesHECM, HomeSafe Standard jumbo, HomeSafe Second second lien, EquityAvail Terms applyApply for personalized ratesHECM reverse, HECM for purchase, Platinum Mortgage (proprietary loan with larger limits and a low age requirement of over 55) Terms apply A reverse mortgage allows older homeowners to access cash by tapping into their home equity. Typically, the loan and any interest are not due until you move out of the house, stop using it as your primary residence or pass away. If you fail to keep up property taxes, homeowners insurance or household maintenance, however, the loan could come due early. Longbridge offers Home Equity Conversion Mortgages (HECMs) in all 50 states. Longbridge Platinum, a proprietary jumbo reverse mortgage, is available in about half the U.S. A HECM is the most common type of reverse mortgage, insured by the Federal Housing Administration and available to homeowners 62 or older. Borrowers must pay a mortgage insurance premium of 0.50% of the outstanding loan balance annually. Longbridge offers two types of HECM in all 50 states and Washington, D.C.: HECM Reverse Mortgage for homeowners who currently own their home and HECM for Purchase, for those buying a new home. Longbridge Platinum is a proprietary loan available in Alabama, Arizona, California, Colorado, Connecticut, Florida, Georgia, Idaho, Illinois, Louisiana, New Mexico, Michigan, Missouri, Nevada, New Jersey, Ohio, Oklahoma, Oregon, Pennsylvania, South Carolina, Texas, Utah, Virginia and Washington state. Because they're not insured by the FHA, Longbridge Platinum loans are available to homeowners as young as 55 without the need for mortgage insurance premiums. In addition, the high loan limit makes it an option for homeowners with high-value homes or condos, who are usually ineligible for HECMs. These are the typical borrower requirements for Longbridge's reverse mortgages: Unlike most lenders, Longbridge only offers reverse mortgages — so its team is particularly knowledgeable on this product. Its website is full of useful information and has an easy-to-use customer portal and application process. Borrowers can call customer service weekdays to speak to a representative in English or Spanish, but Longbridge doesn't have weekend hours. Global credit rating agency DRBS Morningstar gave Longbridge an MOR RVO2, its second-highest rating for reverse mortgages, citing its experienced management team and underwriting staff, comprehensive approval and monitoring practices and "continued investments in technology to enhance efficiencies across the platform," among other factors. In addition, the Better Business Bureau awarded it an A+, its highest grade, based on transparency, truthful advertising, and its response to consumer complaints. Here's how Longbridge compares to two major players in the market. Both Longbridge and Finance of America focus exclusively focus on reverse mortgages and offer comparable products. But while Longbridge lends in every state, Finance of America doesn't offer its services in Alaska, Arizona, Delaware, Iowa, Illinois, Minnesota, Montana, North Dakota, New Jersey, Rhode Island or South Dakota. Apply online for personalized rates HECM, HomeSafe Standard jumbo, HomeSafe Second second lien, EquityAvail 50% Finance of America is the more prolific lender, however, responsible for 22% of reverse mortgage originations in 2024. Landing at No. 3, Longbridge accounted for 12.3% of the market. Mutual of Omaha and Longbridge both have excellent customer service ratings and a solid selection of reverse mortgage options. While reverse mortgages are only a small portion of Mutual of Omaha's overall business, it has a much larger footprint: The biggest reverse mortgage lender in the U.S., it approved 6,149 loans in 2024, accounting for nearly 23% of the market. And Mutual of Omaha offers existing customers up to $1,000 off closing costs. Apply for personalized rates HECM, HECM for purchase Jumbo, HomeSafe, reverse mortgage refinancing, 50% But while Longbridge has a robust online presence, Mutual of Omaha borrowers must work with a loan officer. Longbridge also offers a $500 closing cost discount for military members. A fully digital lender, Longbridge doesn't have any physical locations but you can apply online or over the phone at 855-523-4326. You'll need a photo ID, your Social Security number, the deed to your house, home loan statements, proof of your property tax and homeowners insurance payments and documents related to the home's maintenance. You'll also have to schedule a session with a HUD-approved housing counselor, who will walk you through the reverse mortgage process and help you see if it is the right decision for you. If you continue, you'll need a home appraisal before Longbridge starts the underwriting process, which can take a month or longer to complete before funds are approved. With the convenience of an online lender combined with low rates, great customer service and nationwide availability, Longbridge would be a great fit. If you want to work with your lender in person, however, you should look at other options. In addition, the proprietary Longbridge Platinum mortgage is only available in 24 states, Longbridge is highly rated by both the Better Business Bureau and by DBRS Morningstar. It's the third-largest reverse mortgage lender in the country. There are several risks involved in a reverse mortgage, including the fact that your loan can come due in full if you fail to pay homeowners insurance or property taxes or keep up with home maintenance. In addition, you could end up leaving your heirs with a complex financial situation to unravel. Yes, if you fail to pay homeowners insurance, property taxes or upkeep your home your reverse mortgage and all interest will come due. If you don't pay, you could face foreclosure. At CNBC Select, our mission is to provide our readers with high-quality service journalism and comprehensive consumer advice so they can make informed decisions with their money. Every mortgage review is based on rigorous reporting by our team of expert writers and editors with extensive knowledge of financial products. While CNBC Select earns a commission from affiliate partners on many offers and links, we create all our content without input from our commercial team or any outside third parties, and we pride ourselves on our journalistic standards and Select reviews mortgage products using a variety of criteria, including the types of loans offered, average rates, terms, fees, down payment options, availability, online experience and customer satisfaction. In addition, we incorporate findings from independent sources, including lender scores from the J.D. Power U.S. Mortgage Origination Satisfaction Study and ratings from the Better Business Bureau and DBRS Morningstar.
Yahoo
18-03-2025
- Business
- Yahoo
Best reverse mortgage companies of March 2025
A reverse mortgage can be an appealing option for senior homeowners looking to boost their income. Today, reverse mortgages have shed their shady reputations from years ago and are government-backed loans well worth considering. However, with potentially high fees and stout interest charges, shopping for the best reverse mortgage company is more important than ever. Yahoo Finance has researched the best in the business and has narrowed the field enough so that you can pick two or three finalists and make a well-informed decision. In this article: Best overall Best for online resources Best for jumbo reverse mortgages Best for fast closings Best for repayment flexibility Best for customer satisfaction More about reverse mortgages Lenders that did not make our list FAQs Mutual of Omaha consistently ranks among the top-volume reverse mortgage lenders in the nation and offers an extensive selection of reverse mortgage solutions. Key benefits Mutual of Omaha was the highest-volume reverse mortgage provider in 2024. Mutual of Omaha earns strong financial health grades from the nation's leading credit rating companies. Need to know Getting information from the website is challenging. Clicking on 'Reverse Mortgage' on the 'Products' menu takes you only to a page with a contact form that must be completed to receive a reverse mortgage guide. A link from the Mutual of Omaha site to a reverse mortgage lender review site called Review Counsel shows Mutual of Omaha as a number one Featured Lender with a five-star rating. The site is owned and operated by Mutual of Omaha. Not licensed to serve in New York. Finance of America has deep educational resources to guide potential clients through the reverse mortgage process. Key benefits A reverse mortgage calculator supplies an estimate of the proceeds you might be eligible for in four easy steps. The Education Center defines reverse mortgages, explains how they work, and answers common questions. Offers reverse mortgage solutions for four scenarios: eliminating a mortgage, addressing expenses, funding home improvements, and maintaining or upgrading lifestyle. Need to know Finance of America acquired American Advisors Group (AAG), another reverse mortgage provider, in 2023 and finally combined the brands in the third quarter of 2024. Another leading reverse mortgage lender, Longbridge Financial, caters to homeowners with high-value homes. Key benefits A proprietary (non-HECM) reverse mortgage program called Longbridge Platinum offers a line of credit of up to $4 million to homeowners age 55 and older. Offers a $500 discount on closing costs to active military members and veterans. Need to know The Home Equity Conversion Mortgage (HECM) program requires reverse mortgage counseling before submitting an application. A mobile app provides access to online account information and statements. Read our full Fairway Independent Mortgage review. Fairway Independent Mortgage offers reverse mortgages and has a reputation for quick closings. Key benefits Already known for speedy closings, Fairway launched a "15-Day Close" program for HECM reverse loans in 2024. Competitors often mention a closing time frame of 30 to 45 days. A strong reverse mortgage resource center includes video testimonials from satisfied clients. Mortgage Builder is a free online tool for borrowers age 62 and older that delivers mortgage options based on your financial goals and situation. Need to know Founded in 1996 as a retail mortgage lender for home buyers, Fairway has also grown to be a top-five reverse mortgage lender by volume. Has branches in all 50 U.S. states. Read our full Guild Mortgage review. The Yahoo view: Guild Mortgage has been a residential lender for 60 years and offers a suite of equity-tapping loan products. Key benefits Guild's Flex Payment reverse mortgage allows you to refinance into a HECM to pay off your original mortgage or to sell your home to make a down payment on another house, then use funds from the HECM to cover the remaining amount. Offers fixed- and adjustable-rate HECMs. Reverse mortgage refinancing is available if better terms become available. Need to know Reverse mortgages aren't available in the state of Massachusetts. Read our full Movement Mortgage review. Movement Mortgage has a complete lineup of reverse mortgage options and outscores its peers in customer satisfaction. Key benefits Movement Mortgage is the highest-rated reverse mortgage lender in J.D. Power's national customer satisfaction survey of mortgage originators. Available in all 50 states. Need to know Doesn't offer an online application. A contact form puts you in touch with a mortgage rep. Commits 10% of its profits to charities in areas it serves. A reverse mortgage allows you to access the value of your home without selling it up front. A lender determines the amount of equity it will give you, minus fees and interest, and distributes that cash to you either as a lump sum, in monthly payments, as a line of credit — or as a combination of the three. You will not make payments on the loan. Interest on the loan increases while the principal is reduced. The portion of the equity paid to you, as well as the amount remaining in the home (and not available to you), is designed to last the lifetime of the youngest borrower or spouse, so that you won't owe more than the value of the home when you move out of the house or die. Dig deeper: What is a reverse mortgage, and how does it work? There are three types of reverse mortgages. The most common is the HECM, but there are two other variations that serve different purposes. Issued by private lenders (such as Longbridge Financial, which is on our best-of list), proprietary reverse mortgages are often designed for homeowners with high-value properties. Proprietary reverse mortgages aren't guaranteed by the government and may have higher expenses and interest rates than a HECM. Provided by nonprofit organizations or government agencies, single-purpose reverse mortgages are primarily issued to low-income households to pay for urgent expenses. A local agency on aging may be able to assist you. The most common reverse mortgage is the Home Equity Conversion Mortgage, or HECM. It is issued by retail mortgage providers and backed by the FHA, which facilitates mortgage insurance and protects lenders from financial losses due to defaults. The loan proceeds can be used for any reason. Learn more: What is a HECM reverse mortgage, and who qualifies? Eligibility for most reverse mortgages requires the borrower to: Be 62 or older with no existing federal debt, such as taxes or student loans. Use the property as a primary residence with a paid-off loan or low mortgage balance. Complete a government-approved reverse mortgage consultation and be approved by a lender. Have the financial ability to maintain the home, taxes, and insurance. Reverse mortgage fees can be paid out of pocket as closing costs — or taken from the loan proceeds, which will reduce the sum you'll have access to. Reverse mortgage fees include: Mortgage insurance premiums. Like all FHA-backed loans, HECMs (the most common type of reverse mortgage) require the payment of an up-front and ongoing mortgage insurance premium. The up-front MIP will equal 2% of the loan proceeds, while the monthly MIP will be 0.5% of the loan balance. Third-party fees. Like regular mortgages, there are charges assessed by outside vendors that perform services such as an appraisal, property survey, inspection, credit check, and title search. You may also pay for title insurance, recording fees, and other closing costs. Lender origination fee. A reverse mortgage lender may charge an origination fee of up to $6,000. It is calculated as 2% of the first $200,000 of the home's appraised value, or $2,500 (whichever is greater), plus 1% of the amount over $200,000. Loan servicing fee. The loan servicer may charge a monthly fee of no more than $30 (if the rate is fixed or adjusts annually) to $35 (if the rate adjusts monthly). The fees listed above are for HECM reverse mortgages. Single-purpose and proprietary reverse mortgages fees will vary. Read more: How recording fees work and how much they cost Being able to remain in your house while accessing some of the home equity Receiving a lump sum of cash or stream of income No monthly payments Funds received are tax-free and shouldn't impact retirement benefits Reverse mortgages are usually non-recourse loans; if the balance due exceeds the home's value at maturity, the borrowers or their heirs are not held financially accountable Fees and interest can be much higher than other equity-tapping options, such as a home equity line of credit (HELOC). You are accumulating debt and draining equity from your home. You may lose your house to foreclosure if you don't maintain the home and stay current on property taxes and homeowners insurance. The loan will come due if you stop using the house as a primary residence. Will likely reduce inheritance assets for heirs. For homeowners seeking options other than a reverse mortgage, there are debt and non-debt alternatives, including: A home equity loan or line of credit. You will still borrow your equity from a lender, but the interest rates and fees can be dramatically lower. And you'll make a monthly payment. Selling and downsizing. Selling your home and moving to a smaller house may put some equity cash in your pocket and still allow you to live in your own place. Refinancing. A cash-out refinance or traditional refi might be an option if you are willing to take on the debt and monthly payments. Learn more: The best mortgage refinance lenders To know if a reverse mortgage is a good idea for you will take an honest conversation with someone who knows your financial situation. That can be your accountant, a Certified Financial Planner, or a government-approved housing counselor. Since you are required to talk to a housing counselor anyway, they can be a trusted second opinion after you speak to a financial advisor. We considered the following lenders for our reverse mortgages best-of list, but they weren't quite as strong as our top picks. And some don't offer reverse mortgages: American Pacific Mortgage AmeriHome Mortgage AmeriSave Mortgage Bank of America mortgage Better Mortgage BMO mortgage Cardinal Financial mortgage Carrington Mortgage Services Chase mortgage Citibank mortgage Citizens Bank mortgage CMG Financial mortgage CrossCountry Mortgage Embrace Home Loans Fifth Third Bank mortgage Flagstar Bank mortgage Freedom Mortgage Huntington mortgage loanDepot Mr. Cooper mortgage Navy Federal Credit Union mortgage New American Funding mortgage Newrez mortgage PenFed Credit Union mortgage Pennymac PHH Mortgage Planet Home Lending PNC Bank mortgage Prosperity Home Mortgage Rate (Guaranteed Rate) mortgage Regions Bank mortgage Rocket Mortgage SoFi mortgage TD Bank mortgage Third Federal Savings & Loan mortgage Truist Bank mortgage U.S. Bank mortgage USAA mortgage Veterans United Wells Fargo mortgage Zillow Home Loans A reverse mortgage can lock you into a long-term commitment that leaves you little room for future housing options. You may deplete most or all of the value in your home. Then, if you want to move for any reason, you'll have no equity to use to relocate. You will also pay significant fees and interest to access your home's equity compared to other home equity options. You can, but the window is short. Most reverse mortgage agreements can be canceled within three business days (including Saturdays) following closing. This is known as the "right of rescission." That's also why you might not get the cash until three business days have passed after signing the loan. You may be disqualified for a reverse mortgage if you are delinquent on federal debt, such as student loans, unless you are able to pay off the debt with the proceeds of the reverse mortgage. In most cases, you will also not be eligible for a reverse mortgage if you are under the age of 62 or have not met with a government-approved housing counselor. While there is no minimum credit score required to qualify for a reverse mortgage, lenders will review your credit history and financial situation to determine whether you will have the income or assets required to pay homeowners insurance and property taxes while maintaining the home. If the house is not your principal residence, you will not qualify to use it for a reverse mortgage. It also must meet property standards, meaning if major repairs are needed, they must be done prior to getting a reverse mortgage. A home will not qualify if there is a substantial remaining mortgage loan balance. Finally, multifamily residences with more than four units, mobile homes, and co-ops do not qualify. After doing some research on your own and before completing an application for a HECM reverse mortgage, you must talk to a HUD-approved housing counselor. It's required. The counselor may charge a fee — usually around $125 — but you will get beneficial insight into reverse mortgages and alternatives. Use this tool to find a government-approved housing counselor near you, or call 1-800-569-4287. Methodology: Yahoo Finance reviews and scores reverse mortgage companies based on: 1) Available products, 2) Reverse mortgage sales volume, 3) Closing times, 4) Customer satisfaction, and 5) Online resources. Advertisers or sponsorships do not influence ratings. Editorial disclosure for mortgages: The information in this article has not been reviewed or approved by any advertiser. The details on financial products, including interest rates and fees, are accurate as of the publish date. All products or services are presented without warranty. Check the lender's website for the most current information. This site doesn't include all currently available offers. This article was edited by Laura Grace Tarpley.
