The three tools, in one paragraph each
Reverse mortgage (HECM) — for Utah homeowners 62+. Converts equity to cash, line of credit, or monthly payments. No required monthly mortgage payment. Higher upfront cost. Federal non-recourse protection.
HELOC — revolving second-position credit line for any Utah homeowner with equity and qualifying income. Low upfront cost. Requires monthly payments on the drawn balance. Can be frozen or reduced by the lender.
Cash-out refinance — replaces your existing mortgage with a larger one and gives you the difference in cash. New rate, new term, new monthly payment.
Side-by-side comparison
| Feature | Reverse Mortgage | HELOC | Cash-Out Refi |
|---|---|---|---|
| Age requirement | 62+ | Any | Any |
| Required monthly payment | No | Yes | Yes |
| Upfront cost | Higher (FHA MIP) | Low | Moderate |
| Income/DTI test | Lighter financial assessment | Full DTI | Full DTI |
| Lender can freeze access | No (HECM LOC) | Yes | N/A (closed-end) |
| Non-recourse | Yes | No | No |
| Best time horizon | Long-term | Short-to-medium | Medium-to-long |
How to choose
If you are under 62, the HECM is not available — the choice is between HELOC and cash-out refinance, usually decided by current rate vs. existing rate and time horizon. If you are 62+, the decision turns on monthly cash-flow needs, time horizon, and whether you value protected liquidity. Tres runs all three side-by-side using your actual numbers.