Remove the required monthly payment
A reverse mortgage converts an existing mortgage into a payment-optional loan. You still owe property taxes, insurance and upkeep, but the monthly principal-and-interest obligation goes away.
Reverse lending
Reverse mortgages, explained without the sales pitch
This is the part of the business Chariot Financial specializes in. It suits some households very well and others not at all — and we will tell you which one you are.
What it can do
Build a standby line of credit
The unused portion of a HECM line of credit grows over time. Set up early and left alone, it becomes a financial safety net that doesn't depend on selling investments in a bad market.
Fixed and adjustable structures
A fixed-rate draw takes the proceeds in one lump. An adjustable structure allows a line of credit, monthly tenure payments, or a combination. The right choice depends on whether you need money now or optionality later.
FHA and proprietary programs
The FHA-insured HECM covers most situations. Proprietary reverse programs extend to higher-value homes above FHA limits and, in some cases, to younger borrowers.
The four questions everyone asks
Colorado reverse mortgage calculator
Every variable is yours to set — age, home value, payoff, index and margin, FHA lending limit, fees, mortgage insurance, set-asides, and Colorado taxes and insurance. Nothing leaves your browser.
72
10 years
Estimated line of credit
$139,250
Expected rate 6.000% · principal limit factor 43.5%
- Maximum claim amount
- $650,000
- Gross principal limit
- $282,750
- Upfront mortgage insurance
- $13,000
- Total upfront costs
- $23,500
- Existing mortgage paid off
- $120,000
- Remaining equity today
- $530,000
Left untouched, the line of credit grows to about $266,272 in 10 years at the current compounding rate.
You still owe taxes, insurance and upkeep — about $458/mo on these figures.
Illustrative estimate only, not a loan offer. Actual HECM principal limit factors are set by HUD and depend on the published expected rate at closing, program type, and a financial assessment. HUD counselling is required.
Bring your family to the conversation
Reverse mortgage decisions work best when adult children are in the room. We're happy to walk everyone through it together.