Platinum – A Powerful Financial Tool
A POWERFUL, NEW FINANCIAL TOOL TO HELP YOU ACHIEVE YOUR LONG-TERM GOALS
You worked hard for your home. Now, let your home work hard for you.
If you own a high-value home or condo, Platinum can help you unlock a substantial portion of your home equity with more flexibility, more available cash, and a low, fixed rate. Platinum is a non-FHA (non-government) reverse mortgage program—competitive with many forward mortgages and HELOC programs.
Use the power of Platinum to your advantage.
Pay off an existing mortgage and other debt, and eliminate monthly mortgage payments
Refinance an existing reverse mortgage to get more available cash.
Generate a lump sum of tax-free income* to use any way you wish, such as home improvements or medical expenses.
Buy a house or condo better suited for your retirement needs, such as an active lifestyle community.
• Loan amounts up to $4,000,000
• Low upfront costs with no origination fee options
• No mortgage insurance premiums
• No monthly servicing fee
• No draw limits—unlike a traditional HECM, you can take the full loan proceeds at closing
• Expanded eligibility for condominium communities
• Streamlined approval process
What is Platinum Mortgage?
The Platinum Mortgage is a proprietary reverse mortgage program for homeowners 62 and older. It allows you to borrow against the equity in your home without having to make any monthly mortgage payments.
How does Platinum Mortgage compare to a government-insured Home Equity Conversion Mortgage (HECM)?
The Platinum Mortgage is subject to all the same regulatory requirements as Home Equity Conversion Mortgages. Proprietary reverse mortgages can meet the needs of older homeowners whose properties are ineligible for Federal Housing Administration (FHA) financing—such as units in non-FHA-approved condominiums or some Planned Unit Developments (PUDs)—or if their home values exceed the FHA’s maximum loan limit, which is currently $726,525. Unlike the HECM, Platinum features low upfront costs and no mortgage insurance premiums, which can save you thousands over the life of the loan. Plus, there are no limits on your draw at closing—you can take the full loan proceeds.
How is this program “safe” for senior homeowners?
No matter what happens in the economy, how much money you receive, or how long you live in your home, you will not be required to make a mortgage payment. In addition, no matter what happens to your lender or your home’s value, the Platinum Mortgage is a non-recourse loan. A non-recourse loan is a loan agreement under which the collateral securing a loan is the ultimate source of repayment, and the lender cannot hold the borrower personally liable in the event of a default.
Who owns the home if I take a Platinum Mortgage?
You own the home and retain the same ownership and title that you have today. The lender puts a lien on the property, just as they would with a regular “forward” mortgage, which is paid off when you sell your property, or when the last borrower no longer lives in the home. Your heirs inherit the house, just as they would with any other mortgage, and can decide what to do to repay the loan balance.
What happens if, in the future, the loan exceeds the value of the home?
The Platinum Mortgage is a non-recourse loan, which means that when your home is sold, neither you nor your heirs will be required to repay more than the sale price of the home, no matter how long you live in it.
How does a Platinum Mortgage compare to a conventional mortgage?
In a conventional “forward mortgage,” you make monthly payments to the bank— eventually paying off the mortgage over time. With Platinum, you receive a lump sum of cash at closing, and as long as you live in your home, you never have to make a monthly mortgage payment. However, just like a conventional forward mortgage, homeowners are required to pay property taxes and homeowners insurance and to maintain the home.
What restrictions apply to the cash I receive from a Platinum Mortgage?
It is your money and you can use it the way you want. It’s non-taxable and does not affect Social Security payments. We do recommend that you talk to a competent financial advisor to determine the effect on any other benefits you may be receiving, especially when receiving a large lump sum from the reverse mortgage at closing. Having excess funds in your account could impact eligibility for certain government benefit programs.
When does the Platinum Mortgage need to be paid off?
When you sell the property or no longer occupy your home as your primary residence or fail to meet one of the requirements of the loan.
What are my obligations under a Platinum Mortgage?
With Platinum, you retain title to your home. This means that you also have all your obligations as a homeowner. You are responsible for homeowner taxes and insurances, and any other assessments that may be applied to your property (HOA dues, for example).
Will my heirs still receive an inheritance?
Yes, after the balance of your Platinum Mortgage is paid off, any remaining equity will go to your heirs. The amount of equity that remains will depend on variables, such as how long you stay in your home, home appreciation, and other factors.
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