720-541-5545 - Colorado
928-277-4476 - Arizona


Why do reverse mortgages have a bad reputation and has it changed?

Reverse mortgages have had a bad reputation because they were initially marketed to seniors as an easy way to access their home equity without having to make monthly mortgage payments. However, some lenders failed to disclose the potential risks associated with these loans, such as high fees and interest rates, which could eat away at the equity in the home over time. Additionally, some borrowers were not able to keep up with property tax and insurance payments, which could result in foreclosure.

Over time, regulations have been put in place to better protect borrowers, and the reputation of reverse mortgages has improved. For example, borrowers are now required to undergo counseling before taking out a reverse mortgage to ensure they understand the risks and benefits. Lenders are also subject to stricter guidelines, ensuring that loans are only made to borrowers who can afford to keep up with property taxes, insurance, and other associated costs. As a result, reverse mortgages have become a more reputable option for seniors looking to access their home equity.


720-541-5545 - Colorado

928-277-4476 - Arizona


Company NMLS ID: 2268418
Mortgage Loan Originator NMLS ID: 2216012

Equal Housing Opportunity

If you qualify and your loan is approved, a HECM loan must pay off your existing mortgage(s). With a HECM, no monthly mortgage payment is required. Borrowers are responsible for paying property taxes and homeowner’s insurance (which may be substantial). We do not establish an escrow account for disbursements of these payments. Borrowers must also occupy home as primary residence and pay for ongoing maintenance; otherwise the loan becomes due and payable. The loan must be paid off when the last borrower, or eligible nonborrowing surviving spouse, dies, sells the home, permanently moves out, or does not comply with the loan terms. A HECM increases the principal mortgage loan amount and decreases home equity (it is a negative amortization loan). These materials are not from HUD or FHA and were not approved by HUD or a government agency.