janjordan, Author at Colorado Reverse Mortgage Specialist

Author: janjordan

What Happens to the Home After a Reverse Mortgage Borrower Passes Away?

Posted on November 10, 2025November 13, 2025 by janjordan

One of the most common concerns about reverse mortgages is what happens to the home after the last borrower passes away. Will the bank take it? Can the family keep it? The good news is the home stays in the family’s control.

Here’s what happens:

When the borrower dies, the home becomes part of the estate and is passed on according to the will or living trust. The heirs then have three options:

Pay off the loan
Heirs can choose to pay off the reverse mortgage—either with cash, life insurance, or other assets—and keep the home. Thanks to FHA insurance, they’ll never owe more than 95% of the home’s appraised value, even if the housing market has declined.
Refinance with a new loan
If heirs want to keep the home but don’t have the cash to pay off the loan outright, they can work with a mortgage broker to take out a conventional loan in their own name.
Sell the home
If keeping the home isn’t the goal, the heirs can simply sell it. The reverse mortgage will be paid off from the proceeds, and any remaining equity goes to the family.

If there are no heirs—or if the heirs don’t want the property—no one is personally responsible for the loan. The lender will sell the home, and again, thanks to FHA insurance, there is no debt passed on to the family.

One final note: lenders typically allow up to 12 months to settle the loan after the borrower’s passing, usually granted in three-month extensions, as long as the family stays in communication.

Jan Jordan and Kelsey Jorck are Reverse Mortgage Specialists serving Fort Collins, Loveland, Greeley, Longmont, Dacono, Erie, Boulder, and surrounding areas across Colorado’s Front Range. Click here to contact them and learn if reverse mortgage is right for you.

More Income, Less Stress: Combining Reverse Mortgages and Social Security Wisely

Posted on November 3, 2025November 13, 2025 by janjordan

Social Security is seeing important updates in 2025, and for many Colorado seniors, these changes come at a time when financial flexibility matters more than ever.

This year, recipients are getting a 2.5% cost-of-living adjustment (COLA) to help keep up with inflation. The full retirement age for those born in 1960 or later is now officially 67, though you can still claim benefits at 62—with reduced monthly payments. If you delay until 70, your benefits could increase by up to 8% per year.

More retirees will also see part of their Social Security taxed, since income thresholds haven’t been adjusted, but incomes have risen. At the same time, the maximum benefit for high earners at full retirement age has increased, and the taxable wage base is now $176,100.

So how can seniors stretch their benefits even further? One option is a reverse mortgage.

If you own your home and are at least 62, a reverse mortgage can help you access home equity without monthly mortgage payments. This allows you to delay claiming Social Security, maximizing your lifetime benefits, while using reverse mortgage funds to cover expenses in the meantime. You can receive funds as a lump sum, monthly income, or a line of credit that grows over time.

Reverse mortgages are FHA-insured, available to married couples, and you always retain title to your home.

In short: with 2025’s modest Social Security increase and rising costs, a reverse mortgage can be a smart way to boost your income, delay benefits, and stay financially secure.

Jan Jordan and Kelsey Jorck are Reverse Mortgage Specialists serving Fort Collins, Loveland, Greeley, Longmont, Dacono, Erie, Boulder, and surrounding areas across Colorado’s Front Range. Click here to contact them and learn if reverse mortgage is right for you.

A Guide to To Finding a Reputable Reverse Mortgage Lender

Posted on October 27, 2025November 13, 2025 by janjordan

Reverse Mortgages: How to Qualify, What to Expect, and How to Find the Right Lender

For many older homeowners, a reverse mortgage offers a way to stay financially comfortable during retirement, without the stress of monthly loan payments. Whether you’re facing rising living expenses, health costs, or simply want to free up cash, a reverse mortgage can provide flexible access to home equity.

To qualify, you must be at least 62 years old, own your home (or have significant equity), and live in it as your primary residence. Married couples can both be on the loan, as long as both meet the age requirement. Once qualified, borrowers can choose how they receive the funds—through a lump sum, monthly installments, a line of credit, or even to help purchase a new home.

Loan amounts vary depending on the age of the youngest borrower, the home’s value, current interest rates, and the available equity. Generally, the older you are and the more equity you have, the more money you’ll qualify to receive.

Once you’ve learned the basics, the next step is finding a lender you can trust.

Finding a Reverse Mortgage Lender

Reverse mortgage lenders are everywhere, on TV, in your mailbox, online, and on the radio. But not all sources are created equal. While some are reputable, others can be misleading or, in rare cases, outright scams.

Start by asking around. Your bank, financial planner, or retirement advisor may have trusted recommendations. You can also speak with friends or neighbors who’ve used a reverse mortgage themselves. Community resources like your local Chamber of Commerce or the Better Business Bureau (BBB) can also help point you in the right direction.

What to Look for in a Lender

A trustworthy reverse mortgage lender will take time to explain your options clearly and patiently. Be cautious of anyone who seems rushed, evasive, or too focused on selling. A reputable lender will have ties to your community and work with a network of professionals, including HUD-approved counselors and financial advisors.

Look for lenders who are members of the National Reverse Mortgage Lenders Association (NRMLA). NRMLA members must follow a strict code of ethics and maintain high industry standards. It’s also wise to choose a lender that’s in good standing with the Better Business Bureau—you can even check for past complaints.

Trust Your Instincts

Credentials are important, but so is your comfort level. Even if a lender checks all the boxes on paper, they may not be the right fit for you. If your questions aren’t being fully answered, or something doesn’t feel right, it’s perfectly okay to walk away and find someone else.

Choosing a reverse mortgage is a big decision. Take your time, ask the right questions, and make sure you’re working with someone who puts your best interests first.

How to Use Home Equity in Retirement: Reverse Mortgage, HELOC, or Downsizing?

Posted on October 20, 2025October 22, 2025 by janjordan

For many retirees, home equity makes up a significant portion of their overall wealth, often accounting for 70% or more of their assets, not including Social Security or pensions. When a health crisis or financial pressure arises, tapping into that equity can become necessary. But the key is to do it strategically.

There are a few main ways to access home equity in retirement, each with its own pros and cons.

Reverse Mortgage

A reverse mortgage is a well-regulated loan product designed for homeowners aged 62 and older. It allows borrowers to convert a portion of their home equity into tax-free funds, without taking on a monthly mortgage payment. Instead, the loan is repaid only when the last borrower moves out permanently or passes away.

The amount of money available through a reverse mortgage depends on the age of the borrower(s) and the amount of equity in the home. The older the borrower, the more they may qualify to receive. Funds can be accessed in a lump sum, as monthly installments, or through a growing line of credit. There’s even a reverse mortgage for purchase option for those looking to buy a new home and eliminate monthly payments altogether.

Reverse mortgages are a great option for those with limited retirement income who want to age in place, as well as those who want to create a buffer to protect investment accounts from market volatility.

Home Equity Loan (HELOC)

Another option is a traditional home equity loan or line of credit (HELOC). These loans also allow homeowners to borrow against their home equity, but unlike a reverse mortgage, they come with monthly payments. That can be a serious concern for retirees living on fixed incomes.

Before choosing this route, it’s important to consider your long-term financial stability. If your health changes or your income dips unexpectedly, a HELOC could become a burden—and in the worst case, failure to make the required payments could result in foreclosure.

Downsizing

Selling the home and downsizing is another common strategy. If the homeowner has substantial equity, the proceeds from the sale can be used to rent or buy a more affordable home. For some, this route can provide a simpler lifestyle and potentially free up cash for other needs.

However, downsizing isn’t always the best option—especially for retirees with health concerns or those strongly rooted in their current community. The cost of moving, plus the emotional toll of leaving a long-time home, can outweigh the financial benefits. For homeowners who want to downsize without giving up financial flexibility, the reverse mortgage for purchase option may offer a strong alternative—allowing them to buy a new home and avoid future mortgage payments.

Final Thoughts

Tapping into your home equity should be part of a broader retirement strategy—not a last-minute decision made under stress. Whether you’re considering a reverse mortgage, a home equity loan, or selling and downsizing, it’s wise to talk with both a financial advisor and a reputable reverse mortgage specialist. Together, they can help you decide which option fits your goals, lifestyle, and long-term financial health.

Your Home Equity, On-Demand: The Power of a Reverse Mortgage Line of Credit

Posted on October 6, 2025October 22, 2025 by janjordan

The Reverse Mortgage Line of Credit, technically known as a HECM Line of Credit, is still unfamiliar territory for many in the financial and retirement planning space. But that’s changing, and for good reason. Retirees are starting to take notice, and if you’re not already paying attention, it might be time to start.

So what exactly is a reverse mortgage line of credit? At its core, it’s a way for homeowners 62 and older to unlock their home equity and turn it into an on-demand pool of funds, with no required monthly mortgage payments. But what makes the line of credit option unique is how flexible and powerful it really is.

Let’s start with the basics: a line of credit provides access to money that you can draw from when needed—or leave untouched if you don’t. You only accrue interest on the amount you actually use. This alone makes it an excellent safety net for retirement. Whether it’s for emergencies, unexpected expenses, or just a little fun, travel, grandkids, new hobbies, it’s money available when you need it, without the obligation of immediate repayment.

But here’s where it gets even better: when you choose the line of credit option with a reverse mortgage, your available credit actually grows over time, even if you don’t use it. That’s right. The unused portion of your line of credit increases at the same rate as your loan’s interest rate, plus an additional 1.25%. So if your interest rate is 2.5%, your line of credit grows at 3.75% annually. That growth is guaranteed.

This is something no traditional Home Equity Line of Credit (HELOC) can offer. With a HELOC, your available credit doesn’t grow, and in some cases, it can even be frozen or reduced by the lender. With a reverse mortgage line of credit, the growth is locked in, regardless of what the housing market does.

That makes it not just a safety net, but a strategic financial planning tool. You’re essentially locking in today’s home value and giving yourself a growing reserve of funds to use in the future. Even if home prices decline, your line of credit keeps growing, providing a hedge against volatility.

Of course, all the usual reverse mortgage qualifications apply. You need to be 62 or older, live in your primary residence, and have sufficient equity in the home. You also need to be able to cover basic expenses like property taxes, homeowners insurance, and maintenance. But once you qualify, the line of credit is one of several disbursement options—and one that offers serious long-term benefits.

In short: the reverse mortgage line of credit is a powerful tool that too many people are overlooking. Whether you want a financial backup plan, a source of flexible retirement income, or just the comfort of knowing it’s there, this option deserves a serious look.

Why Financial Planners Are Taking a New Look at Reverse Mortgages

Posted on September 29, 2025October 22, 2025 by janjordan

For years, reverse mortgages were left out of most retirement planning conversations. Many financial advisors either didn’t understand the product, or carried outdated beliefs about how it worked and who it was for.

That’s starting to change.

As myths are dispelled and the program continues to evolve, more planners are recognizing the value a reverse mortgage can bring—especially for retirees on a fixed income or those seeking to make the most of their golden years. For some, it can mean the difference between simply getting by and truly living well.

When structured strategically, a reverse mortgage can support other retirement assets by reducing portfolio withdrawals, delaying Social Security, or creating a reliable buffer for unexpected expenses. And because the loan doesn’t require monthly repayment, it offers something many seniors value deeply: flexibility and peace of mind.

If you’re a financial planner looking to explore this option for your clients, here are a few tips to consider:

1. Work with a reputable reverse mortgage specialist. Look for someone with strong local roots, who represents a lender affiliated with the National Reverse Mortgage Lenders Association (NRMLA) and the Better Business Bureau. Having a trusted partner can make a big difference in navigating the process smoothly and ethically.

2. Make sure you have accurate, up-to-date information. There’s still a lot of misinformation circulating about reverse mortgages. If you’re unsure about any detail – loan terms, eligibility, inheritance rules – don’t guess. Reach out to a qualified reverse mortgage expert who can walk through the specifics with you, and help you feel confident in what you’re presenting to clients.

3. Involve adult children when appropriate. Families often have concerns rooted in old perceptions. Helping adult children understand how the loan works—what it does and doesn’t do—can go a long way in building trust and transparency. Many reverse mortgage professionals offer consultations that include family members, which can help everyone get on the same page.

4. Remember: it’s not one-size-fits-all. Reverse mortgages are incredibly flexible and can be tailored to fit different financial situations and goals. Whether a client is looking to age in place, buy a new home with no monthly mortgage payments, or simply create a long-term financial cushion, reverse mortgages can be an effective part of a broader strategy.

As financial planning continues to adapt to the realities of longer retirements and rising living costs, reverse mortgages are no longer a last resort—they’re a tool worth having in your toolbox.

Is Aging in Place Right for You? Here’s How to Know

Posted on September 29, 2025October 22, 2025 by janjordan

Retirement looks a lot different than it did just a few decades ago. There was a time when growing older meant moving in with your adult children or settling into a senior home. Then came the era of retiring to sunny destinations with golf courses and palm trees. But today, a growing number of retirees are choosing something much simpler: staying put.

According to AARP, roughly 90% of Americans over age 65 say they want to age in place. And 82% say they’d prefer to receive care at home if medical needs arise. That’s a big shift—and it’s changing how many people are planning their retirement.

So how do you know if aging in place is the right choice for you? Here are a few key signs.

First, you’ve built a strong network where you are. Staying connected is essential to a happy retirement. If you have friends nearby, family close enough to visit often, and a community you enjoy, that’s a major reason to stay. In fact, studies show that having a solid social circle—whether through work, volunteering, church, or hobbies—can improve your physical and emotional well-being during retirement. Moving away from children, grandchildren, or even great-grandchildren can be incredibly difficult, and for many, not worth the trade-off.

Second, you’ve already established trusted service providers. That could mean your primary care physician, a specialist familiar with your medical history, your dentist, or even your mechanic and hairstylist. When you’ve built these relationships over time, it can be hard to start over somewhere new—especially if you’re managing health conditions or relying on regular care.

And third, maybe selling your home just doesn’t feel right. Even with Colorado’s strong housing market, there are personal and emotional reasons many people don’t want to part with their home. Maybe it’s been in the family for generations, or it’s been customized to fit your needs. Or maybe selling just sounds stressful.

The good news is: you don’t have to move in order to afford retirement. For many homeowners, a reverse mortgage has made aging in place not only possible, but practical. These specialized loans are available to homeowners aged 62 and older, including married couples, and come with built-in protections like required third-party counseling to help borrowers make fully informed decisions.

A reverse mortgage lets you access the equity in your home without taking on a monthly mortgage payment. You stay in your home, keep the title, and use the funds however you choose, whether that’s covering day-to-day expenses, upgrading your home, helping loved ones, or simply breathing easier financially.

And for those looking to relocate, maybe into a more accessible home or a smaller one nearby, there’s also a reverse mortgage for purchase option that allows you to buy your next home and live in it mortgage-free for life.

Whether you’re already retired or planning for it soon, aging in place is more possible than ever—and with tools like reverse mortgages, it may be easier than you think.

Today’s Reverse Mortgage Isn’t What It Used to Be

Posted on September 15, 2025October 22, 2025 by janjordan

The reverse mortgage of today is not your mother’s reverse mortgage. What was once a misunderstood and often stigmatized financial tool has evolved into a powerful retirement strategy, one that’s now helping seniors from all walks of life create stability, supplement income, and fill gaps in their long-term financial plans.

In fact, more financial advisors and retirement planners are beginning to view reverse mortgages not as a last resort, but as a proactive part of a well-rounded retirement portfolio. Rather than waiting until savings are depleted, many retirees are now incorporating a reverse mortgage early in retirement to help preserve assets and extend the life of their investments.

Through the strategic use of a federally insured reverse mortgage, eligible homeowners can tap into their home equity without taking on a monthly mortgage payment. That’s means qualified Colorado homeowners can access a flexible line of credit or receive steady cash flow for life, while continuing to live in their home and maintain full ownership. All that’s required is keeping up with property taxes, homeowners insurance, and basic upkeep like HOA dues and utilities.

Funds can be used however the borrower chooses: to cover everyday expenses, make home improvements or accessibility upgrades, pay for healthcare needs, help a family member, or simply enjoy life with a little more freedom.

Reverse mortgages are available to homeowners aged 62 and older, including married couples. The program has built-in protections, such as required third-party counseling, to ensure borrowers fully understand the terms before moving forward. And for those looking to buy a new home in retirement, the reverse mortgage for purchase option allows qualified buyers to finance their next primary residence—without ever having to make a mortgage payment.

If you’re exploring ways to stretch your retirement savings and create a more secure future, a reverse mortgage might be worth a closer look.

How to Use a Reverse Mortgage to Buy a New Construction Home

Posted on September 8, 2025September 10, 2025 by janjordan

If you’re 62 or older and planning to build or buy a newly constructed home, you may be surprised to learn that you can use a reverse mortgage to finance that purchase. It’s called a Reverse Mortgage for Purchase or a HECM for Purchase (Home Equity Conversion Mortgage for Purchase), and it offers a unique opportunity to buy your next home—custom or otherwise—without the burden of monthly mortgage payments.

Buying a New Build with a Reverse Mortgage

A reverse mortgage for purchase lets qualified buyers put down a one-time investment (similar to a large down payment), and use the reverse mortgage to finance the rest. The homeowner moves in once the property is complete and lives mortgage payment–free for as long as they remain in the home.

Unlike traditional financing, repayment isn’t due until the last borrower moves out permanently or passes away. The homeowner always retains the title, just like with any other home purchase.

This type of reverse mortgage can be used for:

A custom-built home on your own lot
A newly constructed home in a retirement community
A new home in a subdivision or development
Townhomes or FHA-approved condos, including brand-new units

What to Know About the Process

You can begin the reverse mortgage application process before construction is completed—as long as you’re working with an experienced lender familiar with reverse mortgage loans. While the loan won’t close until the home has received a Certificate of Occupancy from local authorities, starting the paperwork early can help streamline your timeline and lock in your plans.

Once construction is complete and the home is deemed move-in ready, the reverse mortgage can be finalized. You’ll bring your “required investment” to the closing table. After closing, there are no monthly mortgage payments required. You’ll just need to continue covering property taxes, homeowners insurance, utilities, HOA fees (if applicable), and routine maintenance.

Why This Option is a Fit for Retirees

Many older adults are choosing to build homes that fit their long-term needs—single-level layouts, wider hallways, minimal stairs, and energy-efficient features. A reverse mortgage for purchase makes that dream possible without draining retirement savings or relying on traditional financing.

It also supports aging in place by giving seniors the flexibility to move into a home designed for comfort and accessibility while preserving cash flow. This is especially helpful in places like Northern Colorado, where housing demand and construction of retirement-oriented communities continue to grow.

What Happens to the Home After a Reverse Mortgage Borrower Passes Away?

Posted on August 25, 2025September 10, 2025 by janjordan

One of the most common questions people have about reverse mortgages is what happens to the home after the last borrower passes away. Will the bank take it? Can the home be passed down to family? Are heirs responsible for the loan? These are valid concerns—and thankfully, the answers are clearer than many realize.

When a homeowner with a reverse mortgage passes away, the property doesn’t automatically go to the bank. Just like any other asset, the home becomes part of the estate and will be handled according to the instructions in the will or trust. From there, the heirs typically have three options.

The first is to pay off the loan. This is often done with life insurance proceeds, retirement savings, or by pooling family resources. One of the most important protections built into reverse mortgages is that they’re federally insured through the FHA. That means even if the loan balance ends up being more than the home is worth—say during a downturn in the housing market—heirs will never owe more than 95% of the home’s current appraised value. The difference is covered by the FHA insurance.

Another option is for the heirs to take out a traditional mortgage to buy the home. This route is often used when family members want to keep the house but don’t have the cash on hand to pay off the reverse mortgage balance. Most mortgage brokers familiar with reverse mortgages can help heirs navigate this process.

The third option is to sell the home. In this case, the reverse mortgage is paid off using the proceeds from the sale, and any remaining equity goes to the heirs. If the home has appreciated in value, the family may still significantly benefit financially from the sale, even after repaying the loan.

And what if no one wants the house, or there are no heirs? In that case, the home is simply sold, and no one is personally responsible for the loan. Again, thanks to FHA insurance, there’s no debt passed on.

Lenders typically offer up to a year to sort everything out, giving families time to grieve and make decisions. That one-year period is generally broken into three-month extensions, as long as communication stays open with the loan servicer.

With the right planning, families have control over what happens next—and protections are in place to make sure no one is left with unexpected debt. It’s just one more reason reverse mortgages can offer not just flexibility during retirement, but peace of mind for what comes after.