Education-first guidance on reverse mortgages and the Equity Select program for Colorado homeowners. Reverse mortgages begin at age 62 — but Equity Select has no age requirement. No pressure. No jargon. Just the full picture — the benefits, the trade-offs, and the costs — from someone whose job is to look out for you.
Let's start with the elephant in the room
For years, a handful of aggressive lenders treated reverse mortgages as a product to sell, not a tool to fit. High-pressure sales, confusing terms, and a few well-publicized cases where surviving spouses lost their homes created a stigma that still scares people away from a program that can genuinely help. We think you deserve the truth about both the abuse and the reforms.
Our role is to be the opposite of the predatory salesperson: explain the obligations plainly, tell you when a reverse mortgage is not the right move, and never benefit from steering you into anything.
Plain English
A reverse mortgage lets homeowners 62+ turn part of the equity they've already built into usable funds — as a line of credit, monthly payments, a lump sum, or a combination. Instead of you paying the lender each month, the balance grows over time and is repaid when you sell, move out, or pass away. You keep the title and ownership the entire time.
You're 62+, the home is your primary residence, and you have meaningful equity.
Line of credit, monthly income, a lump sum, or a mix — built around your actual goals.
No required monthly mortgage payment. You keep paying taxes, insurance, and upkeep.
Usually from the sale of the home. Any remaining equity goes to you or your heirs.
*A required monthly mortgage payment is eliminated. Ongoing property charges remain your responsibility, and not meeting them can lead to default.
The full picture
A good consultant gives you both columns. Here's where a reverse mortgage helps — and where it doesn't.
*Reverse mortgage proceeds are generally not treated as taxable income, but this is not tax advice. Please consult your tax professional.
The difference that protects your family's inheritance
A traditional FHA-insured reverse mortgage (a HECM) charges two layers of government mortgage insurance: a 2% upfront premium on your home's appraised value, plus an annual premium of 0.5% per year charged on your growing loan balance. That ongoing 0.5% compounds year after year and can quietly cost tens of thousands of dollars over the life of the loan. The Equity Select program is a proprietary product that charges no FHA mortgage insurance at all — neither the 2% upfront nor the 0.5% annual. That keeps your costs lower today and leaves more equity for you and your heirs.
| Feature | Traditional FHA Reverse (HECM) | Equity Select |
|---|---|---|
| Minimum age to qualify | 62+ required | No age requirement |
| Upfront FHA mortgage insurance — 2% of home value | Required | None |
| Annual FHA mortgage insurance — 0.5% per year of loan balance | Charged every year | None |
| Equity preserved for heirs over time | Reduced by both premiums | Significantly more preserved |
| Keep title & ownership of your home | Yes | Yes |
| No required monthly mortgage payment | Yes | Yes |
| Independent counseling | Required | Recommended / available |
| FHA government insurance backing | Yes | No (proprietary) |
| Best suited for | Lower home values; those who value FHA backing | Higher-value homes; cost-conscious; preserving inheritance |
The honest trade-off: Because Equity Select is proprietary, it isn't FHA-insured, and its interest rate and exact terms may differ. The right choice depends on your home's value, your goals, and how long you plan to stay. We'll run both side by side for your specific situation — that comparison is the whole point of a consultation.
See it for yourself
Move the sliders. These are educational estimates that show how the pieces fit — not a quote or an offer.
A HECM charges 2% upfront on the home's value plus 0.5% per year on the loan balance. Equity Select charges neither.
Simplified, conservative estimate. The 0.5% annual premium is charged on a loan balance that grows over time, so real-world totals are typically higher than shown here. Interest, other closing costs, and loan length also affect the outcome. Your actual figures come from a formal loan disclosure.
A reverse mortgage can pay off your existing mortgage, eliminating that required monthly payment.
Illustrative only. You remain responsible for property taxes, homeowners insurance, HOA dues, and upkeep. Eliminating a payment frees cash flow; it does not erase the cost of borrowing, which accrues to the loan balance.
The inheritance picture
This is the comparison families care about most. The shaded band is the extra equity Equity Select can preserve by avoiding both FHA mortgage insurance premiums — money that stays with your heirs instead of going to insurance.
Illustrative model, not a quote. To isolate the effect of FHA mortgage insurance, both loans are shown growing at the same interest rate; the HECM line adds the 2% upfront premium to the starting balance and 0.5% per year to its growth. Actual results depend on your real interest rate, draw schedule, home appreciation, and how long you keep the loan — and a proprietary product's rate may differ from a HECM's. We'll model your specific numbers in a consultation.
Straight talk
A consultant who only ever says "yes" isn't a consultant. Here's how we think about fit.
A stronger retirement, on your terms
For many Colorado retirees, the house is the largest asset they own and the one they think about the least strategically. Used thoughtfully, your equity can steady your monthly budget, create a safety net for the unexpected, and let you stay in your community — while still leaving an inheritance behind.
We explain the program, the obligations, and the alternatives before anyone fills out a single form.
We'll tell you when the answer is no, or when a different option serves you better. That's the point.
We welcome your adult children and advisors. Good decisions are made in the open, together.
No cost. No obligation. No pressure.
Tell us a little about your situation and we'll prepare a clear, side-by-side look at your options — including a real Equity Select vs. HECM comparison for your home. If a reverse mortgage isn't right for you, we'll say so.
Prefer to reach out now? Call or text Steve Romero at (970) 324-6142
or email steve.romero@myidealmtg.com
A licensed specialist will reach out within one business day to schedule your no-obligation consultation. No pressure, ever.
