The Basics
Homeowners age 62 and up in the state of Colorado may qualify for a reverse mortgage, which is a type of loan that is accessed from the equity in the home. But while most traditional loan arrangements require the borrower to make payments to their lender each month, the roles are “reversed” in that the lender makes payments to the borrower for the term of the arrangement instead. The borrower need not worry about reimbursing the money, the loan is repaid when the home of the borrower is sold or the individual leaves the premises for any reason. No payments are due or expected until that time, however, all standard costs of typical ownership must still be paid out, including property taxes, homeowners insurance, and applicable HOA fees.
Want to learn more? Click here to get free information about a reverse mortgage in Colorado!
The Pros of a Reverse Mortgage in CO
Like any major financial decision, there are valid pros and cons to be weighed before you get into a reverse mortgage. These are some of the reasons you should consider applying for this type of loan.
- It’s a reliable income source that many retired seniors may choose to take on because they can receive their funds in one payment or multiple distributions just like a paycheck.
- You can take this cash from your home without it affecting other sources of income such as Social Security or Medicare payments you might be getting.
- A reverse mortgage may be the smart alternative to downsizing your current living situation. Some seniors even take the money they receive and put it towards the purchase of a new home.
- The money you receive is typically tax-free but your situation may be somewhat different. You might want to speak to a tax professional about this topic before you commit.
- You will never be expected to pay back more than the house is worth. This is due to a “nonrecourse” paragraph in your agreement that states you will not be responsible for reimbursements exceeding the current value of the home at the time the loan is expected to be paid off and the home sold.
The Cons of a Reverse Mortgage for Colorado Seniors
Here are some of the downsides to getting into a reverse mortgage:
- The house is no longer yours nor can you hand it down to any heirs unless you repay the loan in full. Without reimbursements, the home becomes the property of someone else and your children or other relatives will have no claim to the house.
- Your equity may run out before you pass away. Many seniors select a reverse mortgage because it’s a safety net option for getting access to a significant amount of money while allowing the borrower to stay in their own home for the remainder of their lifetime.
- The majority of reverse mortgages come with adjustable rates, which could have an impact on the cost of the loan over the length of the term.
- If you are not living in the home for any reason whatsoever over the continuous year, you will be considered as having moved out and the loan is then due for reimbursement. So if you or another borrower living in the home experience health issues that would initiate a move to a health facility for an extended period of time or in the event that you pass away, it could cause issues for the surviving borrower. Widows and widowers are exempt from this aspect of the arrangement.
Biggest CO Reverse Mortgage Lenders
All Time
| Lender | Loans | Total Principal Limit |
|---|---|---|
| WELLS FARGO | 4,542 | 963,445,060 |
| AMERICAN ADVISORS GROUP | 4,057 | 1,590,152,387 |
| UNIVERSAL LENDING CORPORATION | 2,792 | 860,153,163 |
| FINANCIAL FREEDOM SENIOR FUNDING CORP | 1,934 | 355,643,247 |
| FAIRWAY INDEPENDENT MORTGAGE CORPORATION | 1,477 | 668,669,404 |
| APPROVAL FIRST HOME LOANS INC. | 1,356 | 507,507,155 |
| WENDOVER FINANCIAL SERVICES CORP | 1,192 | 119,637,250 |
| FINANCE OF AMERICA REVERSE LLC | 1,169 | 436,039,052 |
| CHERRY CREEK MORTGAGE CO INC | 1,038 | 344,186,533 |
| REVERSE MORTGAGE FUNDING LLC | 905 | 438,099,808 |
| ONE REVERSE MORTGAGE LLC | 755 | 226,343,312 |
| ALLIANCE GUARANTY MORTGAGE CORP | 650 | 138,077,465 |
| SILVER LEAF MORTGAGE INC | 643 | 271,812,380 |
| MUTUAL OF OMAHA MORTGAGE INC. | 610 | 321,040,416 |
| MOUNTAIN PACIFIC MORTGAGE CO | 536 | 108,704,039 |
| SYNERGY ONE LENDING INC. | 449 | 170,012,720 |
| AMERICAN LIBERTY MORTGAGE INC | 441 | 185,811,830 |
| MAC5 MORTGAGE INC. | 426 | 169,019,595 |
| PROVIDENT LENDING CORPORATION | 424 | 117,957,309 |
| LIBERTY HOME EQUITY SOLUTIONS INC | 389 | 130,116,150 |
Since 2012
| Lender | Loans | Total Principal Limit |
|---|---|---|
| AMERICAN ADVISORS GROUP | 3,869 | 1,544,171,917 |
| FAIRWAY INDEPENDENT MORTGAGE CORPORATION | 1,401 | 653,861,139 |
| UNIVERSAL LENDING CORPORATION | 1,268 | 498,298,438 |
| APPROVAL FIRST HOME LOANS INC. | 1,236 | 475,427,655 |
| REVERSE MORTGAGE FUNDING LLC | 905 | 438,099,808 |
| FINANCE OF AMERICA REVERSE LLC | 743 | 340,135,213 |
| SILVER LEAF MORTGAGE INC | 643 | 271,812,380 |
| ONE REVERSE MORTGAGE LLC | 636 | 198,975,152 |
| MUTUAL OF OMAHA MORTGAGE INC. | 610 | 321,040,416 |
| CHERRY CREEK MORTGAGE CO INC | 588 | 220,210,769 |
Want to learn more? Click here to get free information about a reverse mortgage!
Colorado Average HECM Interest Rates
Current Rates
| Date | Fixed Rate | Adjustable Rate |
|---|---|---|
| 2019-01-01 | 4.88% | 4.88% |
| 2019-02-01 | 4.90% | 4.96% |
| 2019-03-01 | 4.80% | 4.81% |
| 2019-04-01 | 4.85% | 4.75% |
| 2019-05-01 | 4.62% | 4.54% |
| 2019-06-01 | 4.57% | 4.52% |
| 2019-07-01 | 4.49% | 4.36% |
| 2019-08-01 | 4.53% | 4.11% |
| 2019-09-01 | 4.68% | 3.98% |
| 2019-10-01 | 4.45% | 3.98% |
| 2019-11-01 | 4.29% | 3.95% |
| 2019-12-01 | NA | 3.93% |
| 2020-01-01 | 4.43% | 3.83% |
| 2020-02-01 | 4.40% | 3.86% |
| 2020-03-01 | 4.59% | 3.81% |
| 2020-04-01 | 4.87% | 3.44% |
| 2020-05-01 | 3.50% | 3.22% |
| 2020-06-01 | 3.56% | 3.05% |
| 2020-07-01 | 3.45% | 3.02% |
| 2020-08-01 | 3.65% | 2.91% |
| 2020-09-01 | 3.38% | 2.92% |
| 2020-10-01 | 3.51% | 2.86% |
| 2020-11-01 | 3.29% | 2.81% |
| 2020-12-01 | 3.33% | 2.73% |
| 2021-01-01 | 3.00% | 2.67% |
| 2021-02-01 | 3.28% | 2.60% |
| 2021-03-01 | 3.24% | 2.50% |
| 2021-04-01 | 3.23% | 2.39% |
| 2021-05-01 | 3.31% | 2.29% |
| 2021-06-01 | 3.42% | 2.15% |
| 2021-07-01 | 3.30% | 2.12% |
| 2021-08-01 | 3.36% | 2.10% |
| 2021-09-01 | 3.28% | 2.14% |
| 2021-10-01 | 3.38% | 2.07% |
| 2021-11-01 | 3.37% | 2.13% |
| 2021-12-01 | 3.43% | 2.21% |
| 2022-01-01 | 3.41% | 2.23% |
| 2022-02-01 | 3.51% | 2.39% |
| 2022-03-01 | 3.39% | 2.70% |
| 2022-05-01 | 3.42% | 3.67% |
| 2022-04-01 | 3.51% | 3.07% |
| 2022-06-01 | 4.43% | 3.98% |
| 2022-07-01 | 4.85% | 4.40% |
| 2022-08-01 | 5.93% | 5.06% |
| 2022-09-01 | 5.70% | 5.47% |
| 2022-10-01 | 5.63% | 5.87% |
| 2022-11-01 | 5.68% | 6.38% |
| 2022-12-01 | 6.30% | 6.84% |
| 2023-01-01 | 5.99% | 6.99% |
| 2023-02-01 | NA | 7.01% |
| 2023-03-01 | NA | 7.22% |
| 2023-04-01 | NA | 6.94% |
| 2023-05-01 | NA | 6.92% |
| 2023-06-01 | 6.93% | 7.15% |
| 2023-07-01 | NA | 7.44% |
| 2023-08-01 | NA | 7.55% |
| 2023-09-01 | NA | 7.67% |
| 2023-10-01 | NA | 7.71% |
| 2023-11-01 | NA | 7.74% |
| 2023-12-01 | NA | 7.67% |
| 2024-01-01 | NA | 7.44% |
| 2024-02-01 | NA | 7.19% |
Historic Rates
| Date | Fixed Rate | Adjustable Rate |
|---|---|---|
| 2016-01-01 | 4.98% | 3.60% |
| 2016-02-01 | 4.83% | 3.74% |
| 2016-03-01 | 4.87% | 3.78% |
| 2016-04-01 | 4.99% | 3.92% |
| 2016-05-01 | 4.99% | 4.05% |
| 2016-06-01 | 4.92% | 4.06% |
| 2016-07-01 | 4.87% | 4.11% |
| 2016-08-01 | 4.78% | 4.20% |
| 2016-09-01 | 4.88% | 4.44% |
| 2016-10-01 | 4.91% | 4.53% |
| 2016-11-01 | 4.85% | 4.60% |
| 2016-12-01 | 4.86% | 4.62% |
| 2017-01-01 | 4.87% | 4.66% |
| 2017-02-01 | 4.97% | 4.72% |
| 2017-03-01 | 4.96% | 4.59% |
| 2017-04-01 | 4.98% | 4.50% |
| 2017-05-01 | 4.96% | 4.46% |
| 2017-06-01 | 5.01% | 4.43% |
| 2017-07-01 | 5.02% | 4.42% |
| 2017-08-01 | 4.97% | 4.49% |
| 2017-09-01 | 5.05% | 4.47% |
| 2017-10-01 | 4.99% | 4.49% |
| 2017-11-01 | 5.00% | 4.57% |
| 2017-12-01 | 4.90% | 4.60% |
| 2018-01-01 | 4.92% | 4.63% |
| 2018-02-01 | 4.85% | 4.66% |
| 2018-03-01 | 4.66% | 4.60% |
| 2018-04-01 | 4.89% | 4.73% |
| 2018-05-01 | 4.66% | 4.69% |
| 2018-06-01 | 4.76% | 4.77% |
| 2018-07-01 | 4.66% | 4.72% |
| 2018-08-01 | 4.61% | 4.76% |
| 2018-09-01 | 4.67% | 4.74% |
| 2018-10-01 | 4.57% | 4.73% |
| 2018-11-01 | 4.68% | 4.79% |
| 2018-12-01 | 4.59% | 4.89% |
Top Cities in Colorado by Total HECM Loans Originated
| Rank | City | Zip | Total |
|---|---|---|---|
| 1 | DENVER | 80219 | 703 |
| 2 | AURORA | 80014 | 696 |
| 3 | DENVER | 80207 | 649 |
| 4 | ARVADA | 80004 | 568 |
| 5 | ARVADA | 80003 | 561 |
| 6 | LOVELAND | 80538 | 545 |
| 7 | GREELEY | 80634 | 541 |
| 8 | DENVER | 80221 | 523 |
| 9 | LITTLETON | 80123 | 510 |
| 10 | LONGMONT | 80501 | 493 |
| 11 | LOVELAND | 80537 | 485 |
| 12 | LAKEWOOD | 80226 | 477 |
| 13 | DENVER | 80205 | 476 |
| 14 | LITTLETON | 80127 | 452 |
| 15 | AURORA | 80013 | 449 |
| 16 | BROOMFIELD | 80020 | 424 |
| 17 | DENVER | 80211 | 420 |
| 18 | WHEAT RIDGE | 80033 | 409 |
| 19 | LITTLETON | 80128 | 406 |
| 20 | DENVER | 80210 | 390 |
| 21 | LITTLETON | 80120 | 385 |
| 22 | GOLDEN | 80401 | 385 |
| 23 | WESTMINSTER | 80031 | 380 |
| 24 | CENTENNIAL | 80122 | 372 |
| 25 | AURORA | 80012 | 370 |
| 26 | COMMERCE CITY | 80022 | 367 |
| 27 | ENGLEWOOD | 80110 | 364 |
| 28 | GRAND JUNCTION | 81504 | 363 |
| 29 | MONTROSE | 81401 | 351 |
| 30 | PARKER | 80134 | 350 |
Housing Counselors in CO
BOULDER COUNTY HOUSING AUTHORITY
PO BOX 471, BOULDER CO 80306-0471
(720) 564-2279
http://www.bouldercountyhc.org
BROTHERS REDEVELOPMENT, INC.
2250 EATON ST, EDGEWATER CO 80214-1276
(303) 202-6340
CITY OF AURORA COMMUNITY DEVELOPMENT DIVISION
9898 E COLFAX AVE, AURORA CO 80010-5012
(303) 739-7914
http://auroragov.org
COLORADO HOUSING AND FINANCE AUTHORITY
1981 BLAKE ST., DENVER CO 80202-1229
(303) 297-7428
DOUGLAS COUNTY HOUSING PARTNERSHIP
9350 HERITAGE HILLS CIRCLE, LONE TREE CO 80124-5518
(303) 784-7857
www.douglascountyhousingpartnership.org
GRAND JUNCTION HOUSING AUTHORITY
8 FORESIGHT CIR, GRAND JUNCTION CO 81505-1014
(970) 208-9525
http://www.gjha.org/
GREENPATH FINANCIAL WELLNESS
424 PINE ST SUITE 202, FORT COLLINS CO 80524-2421
(888) 860-4167
http://www.greenpath.com
HOUSING SOLUTIONS FOR THE SOUTHWEST
295 GIRARD ST, DURANGO CO 81303-6828
(970) 259-1086
www.swhousingsolutions.com
NEIGHBOR TO NEIGHBOR
1550 BLUE SPRUCE DR, FORT COLLINS CO 80524-2015
(970) 488-2364
http://www.n2n.org
NORTHEAST DENVER HOUSING CENTER
1735 GAYLORD ST, DENVER CO 80206-1208
(303) 377-3334 ext 229
www.nedenverhousing.org
Want to learn more? Click here to get free information about a reverse mortgage!
