Utah Reverse Mortgage

The Utah reverse mortgage loan is one of just a handful of loans available in the nation that allow homeowners to tap into their home equity and generate income.  Very few financial instruments allow this, at least not in an effective and secure way.  If you own a home with equity and you’re over the age of 62 in Utah, you likely qualify for this mortgage.

Reverse Mortgage Utah Information

It’s not hard to get one of these loans.  Reverse mortgages in Utah are offered as a unique, beneficial service to seniors and retirees who need or want to establish a steady stream of retirement income while remaining financially independent.  With this loan, your lender takes over ownership of your home equity and pays you for it in spendable cash.  You don’t have to worry about losing your home or paying the loan back.  The money is your money.

As a result, you can spend the money on anything you want.  Though the goal of a reverse mortgage is to help you obtain the money you need to live comfortably and healthily, you can put the funds toward a nice vacation, a down payment on a new home, gifts for grandkids, medical costs, other debt, or anything else.  For more reverse mortgage information and to find out how you can qualify for this loan type, read some of the other articles on this site or get in touch with one of our lenders.

You can elect to receive your money in one of several possible ways.

• In monthly installments.
• As a lump sum.
• Through a credit line.
• Any combination of the above options.

Your lender owns your home equity in a reverse mortgage but not the home itself.  This should come as a relief to many homeowners who are accustomed to fearing that their home will be repossessed.  In traditional mortgages, your loan is secured by your home and can be taken over by your lender.  This is not the case with reverse mortgages.  You can continue living in your home as long as you please without paying anything back to your lender.

The loan amount becomes due for repayment only when one of two situations arises.  The loan must be paid back when you move into a new home and sell your old one, or it must be paid back by your heirs when you pass away.

This last sentence may catch you off guard, but don’t worry.  Your heirs won’t have to come up with any money to repay your loan.  The heir that takes on ownership of your home will be required to pay back the debt owed, and this can easily be done simply by selling the home.  The lender cannot collect more money than what the home sells for. This is a federal mandate.  Your heirs won’t be affected in any way by your reverse mortgage debt.

Some of this can seem confusing at first glance, though.  If you want more information about this, read through the HUD’s Frequently Asked Questions page.

Utah Reverse Mortgage Lenders

Reverse mortgages are readily available from multiple lenders in Utah, but you need to find the best one before you agree to take out a loan.  Each lender you contact will quote you a different mortgage rate and will want to charge you different fees.  Evaluate all your options before making a decision.

If you want to learn more about the steps involved in applying for a reverse mortgage, check out our reverse mortgage checklist or simply start contacting lenders in your area.

About Utah

Utah, the 11th largest state in the nation, offers its citizens the free "Utah Cares" program, which allows seniors to find information on both state and local communities for retirement living and other benefits.  Salt Lake City, Provo, West Valley City, West Jordan, Sandy, Orem, and Ogden are all major cities within the state and home to many seniors.

Most of the Utah's population lives in Salt Lake City, the capital of the state.  In comparison, much of the rest of the state is uninhabited.  Still, the state is a center of transportation, information technology, research, government services, and mining.  It is also a major tourist destination for outdoor recreation, which makes it a lively place for retirees.  If you need a reverse mortgage to secure your retirement income in this state, contact one of our lenders to get started.

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