Myth 1 — "The bank takes your home."
False. A HECM is a lien against the property, exactly like a forward mortgage. You stay on title and continue to own the home.
Myth 2 — "Heirs get stuck with the debt."
False. HECMs are non-recourse. Heirs can pay off the loan and keep the home, sell and keep remaining equity, or convey the home to the lender. They are never personally liable for more than the home's value.
Myth 3 — "It's a loan of last resort."
False. Independent academic research treats the standby HECM line of credit as a sequence-of-returns risk management tool — useful regardless of whether you "need" the cash.
Myth 4 — "I'll lose my Social Security."
False. Reverse mortgage proceeds are loan funds, not income. They do not affect Social Security retirement benefits or Medicare. Needs-based programs are a different conversation.
Myth 5 — "The fees are outrageous."
Fees are real but federally capped. Upfront MIP, capped origination, and standard third-party closing costs. See the dedicated cost breakdown page for line-item detail.
Myth 6 — "I can't qualify if I still owe money on my home."
False. The existing mortgage is paid off at closing using HECM proceeds. That is a primary reason Utah homeowners apply — to eliminate the existing monthly payment.
Myth 7 — "The bank can change the terms later."
False. HECM terms are set at closing and disclosed in writing. The margin, MIP, and structural terms do not change unilaterally.
Myth 8 — "It's only for poor seniors."
False. Many Utah HECM borrowers have significant assets and use the standby line of credit as part of a sophisticated retirement income plan.
Myth 9 — "There is no counseling — they just sell it to you."
False. Independent HUD-approved counseling is mandatory before application can proceed.
Myth 10 — "Once I take it, I can never get out."
False. You may sell the home and pay off the HECM at any time. You may also refinance into a forward mortgage if it makes sense.