Three different ways for a Utah homeowner to tap equity. Each is right for a different situation.
Watch: Reverse Mortgage vs HELOC
Reverse Mortgage vs HELOC
How a reverse mortgage compares to a HELOC for retirees.
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.
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Reverse Mortgage vs HELOC
How a reverse mortgage compares to a HELOC for retirees.
A concise entry-level overview for Utah homeowners 62+ beginning their research: what a HECM is, who may qualify, how proceeds can be taken, the obligations that continue, and where to go next.
Educational only. Not legal, tax, or financial advice.
Related Resources
Reverse Mortgage Explained
Tres Miller walks through how a reverse mortgage works for Utah homeowners 62+.
Reverse Mortgage Myths
The most common reverse mortgage myths — and the truth behind each one.
Is a Reverse Mortgage a Bad Idea?
When a reverse mortgage is the wrong tool — and when it's the right one.
A broad home-equity strategy resource for Utah homeowners 62+ — comparing staying put, HELOCs, refinancing, downsizing, selling, and a reverse mortgage as part of a complete retirement plan.
Educational only. Not legal, tax, or financial advice.
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