Reverse mortgages are becoming a more common conversation among senior homeowners across Albuquerque, Rio Rancho, and the surrounding New Mexico communities. Still, many people hesitate because of outdated information and lingering myths.

According to Ben Lucero of Indigo Mortgage, most of those concerns are based on how reverse mortgages worked years ago — not how they work today.

“A lot of New Mexico seniors are surprised when they learn how different reverse mortgages are now,” Ben says. “What people remember from 20 or 30 years ago simply isn’t the reality anymore.”

At Indigo Mortgage, Ben works directly with homeowners throughout Albuquerque, Rio Rancho, Santa Fe, and Sandoval County, helping them understand whether a reverse mortgage fits their long-term goals.

Why Reverse Mortgages Developed a Bad Reputation

“When reverse mortgages first came out, there weren’t many rules in place,” Ben explains. “It was like the Wild West.”

In those early years:

• Lenders weren’t closely regulated
• Fees could be extremely high
• Interest rates weren’t well controlled
• Seniors often didn’t receive clear explanations

“That caused real damage, especially for retirees living on fixed incomes,” Ben says. “Unfortunately, that reputation stuck — even though the industry has completely changed.”

How Reverse Mortgages Are Protected Today

One of the biggest changes, according to Ben, is federal oversight.

“Today’s reverse mortgages are regulated under the FHA,” Ben says. “That alone changed everything.”

Modern reverse mortgages — officially called Home Equity Conversion Mortgages (HECMs) — must meet strict federal guidelines, including:

• FHA caps on fees and interest rates
• Mandatory third-party counseling
• Clear consumer protections for seniors
• Safeguards for heirs

“These protections exist to make sure seniors in Albuquerque and throughout New Mexico aren’t being taken advantage of,” Ben explains.

How Reverse Mortgages Work for New Mexico Homeowners

A reverse mortgage allows homeowners 62 years or older to access a portion of their home’s equity while continuing to live in the home.

“With a reverse mortgage, you’re using equity you’ve already earned,” Ben says. “You still own your home.”

Depending on the situation, funds can be received as:

• Monthly income
• A lump sum
• A line of credit
• Or a combination

This can be especially helpful for New Mexico retirees who:

• Want to eliminate an existing mortgage payment
• Need supplemental income during retirement
• Plan to age in place

“Many homeowners in Albuquerque and Rio Rancho have built significant equity over the years,” Ben says. “A reverse mortgage can help put that equity to work.”

When a Reverse Mortgage Makes Sense — and When It Doesn’t

Ben is clear that reverse mortgages are not a one-size-fits-all solution.

“They work best in the right circumstances,” Ben says. “And they shouldn’t be forced.”

Reverse mortgages may make sense if:

• You plan to stay in your home long-term
• Your home is your primary residence
• You want to improve cash flow without selling

They may not be ideal if:

• You plan to move within a few years
• Preserving full equity for heirs is the top priority
• Other financing options are more cost-effective

“That’s why having a real conversation matters,” Ben adds.

Why Local Experience Matters in New Mexico

Ben strongly recommends working with a local New Mexico lender, not an out-of-state call center.

“Reverse mortgages are complicated,” he says. “You want someone you can meet face to face.”

At Indigo Mortgage, Ben works directly with homeowners across:

• Albuquerque
• Rio Rancho
• Santa Fe
• Bernalillo
• Los Lunas
• And surrounding communities

“We understand New Mexico property values, taxes, and local retirement concerns,” Ben says. “That local knowledge makes a big difference.”

Indigo Mortgage’s Approach to Reverse Mortgages

Indigo Mortgage focuses on education first.

“Our job isn’t to push a loan,” Ben says. “It’s to explain the options clearly so people can make the right decision for their family.”

Clients appreciate:

• Honest, no-pressure consultations
• Clear explanations
• Local, long-term support
• Experience with New Mexico housing markets

“We want seniors to feel confident, not confused,” Ben adds.

Talk to Ben Lucero at Indigo Mortgage

If you’re a senior homeowner in Albuquerque or anywhere in New Mexico and have questions about reverse mortgages, Ben encourages reaching out.

“Even if you’re just exploring your options, we’re happy to talk,” Ben says.

Contact Indigo Mortgage to schedule a consultation with Ben Lucero and learn whether a reverse mortgage makes sense for your retirement goals here in New Mexico.