Video · Home equity · Utah
“They take your house.” Do they really?
I sat down with reverse mortgage professional Matt Harrison to separate the myths from the mechanics—without trying to talk anyone into one.
10 min read UtahBy Dana Hoyt · October 2, 2026
Watch the full interview, then use this guide to keep the family conversation going.
The short answer
A reverse mortgage is still a mortgage.
A reverse mortgage is a loan secured by a home. The homeowner keeps title. With the most common kind—an FHA-insured Home Equity Conversion Mortgage, or HECM—an eligible older homeowner can borrow against part of the home's equity without a required monthly principal-and-interest payment while the loan remains in good standing.
That last phrase matters. No monthly principal-and-interest payment does not mean no responsibilities and it does not mean free money. Interest and applicable charges are added to the balance, so the amount owed generally grows. The borrower must keep the home as a principal residence, pay property taxes and homeowners insurance, and maintain the property.
You still own the home. You are also still responsible for it.
Meet the expert
Matt Harrison works in the part of lending most families misunderstand.
Matt Harrison is a Retirement Mortgage Professional with Movement Mortgage. He has worked in real estate and lending for years, and his focus in our conversation is not a sales pitch. It is helping homeowners and their adult children understand what the loan does, what it does not do, and which questions deserve a real answer.
For loan-specific questions, contact Matt directly:
Matt Harrison · NMLS #1425580. Movement Mortgage, LLC · NMLS #39179. Program availability and borrower eligibility vary.
Myth versus reality
The four claims I wanted Matt to answer plainly.
“The lender takes your house.”
Reality: The borrower keeps title to the home. The home is collateral for a loan, just as it is with a traditional mortgage. The difference is that required monthly principal-and-interest payments are generally not made while the loan remains in good standing, so the balance usually grows instead of shrinking.
“Your kids lose the inheritance.”
Reality: Heirs do not automatically lose the home. When the loan becomes due, they can usually sell the property and keep any equity left after the loan is repaid, or keep the home by satisfying the debt. A growing balance can reduce the equity they inherit, which is why the family should understand the plan before closing.
“It is only for people who are out of money.”
Reality: Some homeowners use home equity because they need cash flow. Others consider it as one piece of retirement planning, to replace an existing payment, establish a line of credit, or purchase a different principal residence. Whether that strategy is wise depends on the household, the costs, and the alternatives.
“Every reverse mortgage is a scam.”
Reality: A legitimate FHA-insured Home Equity Conversion Mortgage is a regulated loan, not a transfer of ownership. That does not make every sales pitch trustworthy or every loan suitable. Independent counseling and careful comparison still matter.
What happens to the equity?
Equity is not erased—but it is being used.
Think of equity as the home's value minus the debt secured by it. If the home appreciates faster than the loan balance grows, equity may remain or even increase. If the balance grows faster than the value, the owner's remaining equity shrinks. Nobody can promise which path a particular home will take.
The HECM is generally non-recourse. When it comes due, neither the borrower nor the estate is expected to repay more than the home's value under the program's rules. But “non-recourse” does not mean the debt disappears while the family keeps the property free and clear. The loan still has to be resolved.
That is why I would never describe a reverse mortgage as either “spending the kids' inheritance” or “protecting the kids' inheritance” without seeing the complete plan. It converts part of the home's equity into money or purchasing power during the homeowner's life. That can help the homeowner, and it can leave less home equity later. Both statements can be true.
For the children and heirs
Your children can still inherit the house. They also inherit a decision.
When the last borrower dies—or another event makes the loan due—the estate and heirs need to act. If they want to keep the home, they generally need to satisfy the reverse mortgage, often with cash or new financing. If they sell, the loan is paid from the proceeds and they keep the remaining equity.
If the HECM balance is greater than the home's value, federal rules provide options tied to the appraised value and mortgage insurance. The timing and paperwork matter, so heirs should contact the loan servicer promptly rather than waiting for a deadline to pass.
A spouse who is not a borrower deserves special attention before closing. Some eligible non-borrowing spouses may receive protections, but those protections have requirements and do not necessarily include continued access to loan proceeds. Other people living in the home—adult children, partners, caregivers—do not automatically gain the right to stay.
The real risks
The danger is not a lender secretly stealing the deed. It is misunderstanding the contract.
The balance grows because interest, mortgage-insurance costs, and other financed charges can accumulate. That can make the loan expensive if the homeowner moves or sells after only a short time. It can also leave less flexibility if the owner later needs the equity for care, another move, or family goals.
The borrower can face foreclosure for failing to pay property taxes, homeowners insurance, applicable association charges, or for not maintaining the home. The loan may also become due when the property is no longer the principal residence. A long move into a hospital, rehabilitation center, nursing home, or assisted-living setting can therefore change the picture.
And there is ordinary sales risk: pressure, urgency, promises that sound too clean, or someone steering the proceeds into another product. HUD-approved counseling is required for a HECM, but I would still compare options and involve the people who understand your retirement, taxes, estate plan, and family.
The honest no
Who should not get a reverse mortgage?
It may be a poor fit if you expect to move soon, if the upfront and ongoing costs outweigh the benefit, or if keeping the home's equity as intact as possible is one of your highest priorities. It also deserves a hard stop if taxes, insurance, maintenance, or association costs are already unaffordable and there is no sustainable plan for them.
If a spouse or another person expects to remain in the home but is not protected under the loan, do not move forward until everyone understands what happens after the borrower dies or leaves. And if a less expensive solution—selling and downsizing, a traditional home-equity product, family support, or a different retirement-income plan—does the job with fewer tradeoffs, compare that first.
A loan can be legitimate and still be wrong for your family.
The other side of the ledger
There are real benefits here too—financial and tax ones.
I do not want this article to read like a warning label only. Used carefully, a reverse mortgage can solve a real problem. Eliminating a required monthly mortgage payment can free up cash flow on a fixed retirement income. A HECM line of credit can sit as a backup reserve you only draw when you need it. And for some homeowners, it is the tool that lets them stay in the home they love instead of selling it to fund retirement.
The tax side is often the part people know least about. Because the money you receive is loan proceeds rather than income, HECM draws generally are not counted as taxable income the way a withdrawal from a retirement account can be. That is one reason some retirees use the line of credit strategically instead of selling investments in a down year. But "generally not taxable" is not the same as "no tax questions"—how you take the money, and whether you receive needs-tested benefits such as Medicaid, can change the answer for your specific household.
That is exactly why the right team matters. Before you decide anything, sit down with a reverse mortgage expert like Matt and with your CPA. Matt can explain what the loan does and what it costs. Your CPA can tell you what it does to your tax return and your benefits picture. Those are two different conversations, and you want both of them before you sign.
One professional explains the loan. Another explains what it does to your taxes. You need both.
A different way to move
Yes, a reverse mortgage can help buy the next home.
A HECM for Purchase allows an eligible buyer age 62 or older to combine HECM proceeds with their own cash to buy a new principal residence. There is no required monthly principal-and-interest payment while the loan remains in good standing, but the buyer still needs meaningful cash for the difference between the purchase price and the loan proceeds, plus applicable closing costs.
That can matter to someone who wants a one-level home, less maintenance, a different community, or closer proximity to family without putting every available dollar into the purchase. The home and buyer must qualify, and the same taxes, insurance, maintenance, and occupancy obligations continue.
This is where Matt handles the loan questions and I handle the real-estate questions. Before listing the current home or writing an offer, we can put the sale proceeds, purchase choices, timing, and financing into one coordinated plan.
Before anyone signs
Put the whole family around the same table.
1. What problem are we solving? Name the goal: cash flow, eliminating an existing payment, home improvements, care, a line of credit, or buying the next home.
2. What happens if the homeowner moves sooner than planned? Compare the payoff and likely remaining equity after the loan's costs.
3. Who lives in the home and who is on the loan? Ask specifically about a spouse, partner, adult child, or caregiver who expects to stay.
4. Can the homeowner reliably pay the property charges? Include taxes, insurance, maintenance, association dues, and any flood insurance.
5. What do the heirs expect? Decide whether they would sell, refinance to keep the home, or prefer a different plan now.
6. What are the alternatives? Review downsizing, selling, traditional financing, home-equity products, and retirement resources with the appropriate professionals.
7. Has everyone heard the same explanation? Use the required independent housing counseling, then bring unresolved legal, tax, and estate questions to qualified advisers.
Ask the interview
Still wondering something? Ask.
This answers questions from my conversation with Matt Harrison — ask about anything we covered and it'll point you to the right part of what was said.
Ask about this conversation
Answers come from the interview with Matt Harrison — powered by Lovable AI.
Answers are generated from the interview and are general information, not advice for your specific situation. Nothing you ask is saved.
The next conversation
Understand the loan. Then decide whether it belongs in the plan.
The goal of this interview is not to convince you to get a reverse mortgage. It is to make the words less frightening and the questions more useful. If you want to understand the loan itself, call Matt. If you want to understand what your home may sell for, what you could buy next, or how a move would work, start that conversation with me.
Source and scope: This educational overview follows Dana's interview with Matt Harrison and current consumer guidance from the U.S. Department of Housing and Urban Development and the Consumer Financial Protection Bureau. It focuses primarily on FHA-insured HECMs; proprietary products may work differently. Program rules, eligibility, costs, and protections can change. Confirm current terms with a qualified lender and HUD-approved counselor. This is not financial, tax, estate-planning, or legal advice.
Share this post
Keep reading
More practical guidance for Utah homeowners
Resources
The Goat Heads of Real Estate
Tiny. Annoying. And somehow they always find you. From pre-approval paperwork to the 27-page inspection report, here are the 10 little thorns of buying and selling a home in Utah — and how to avoid stepping on them.
Read
Resources
When Is the Best Time to Buy or Sell a Home If You're in Debt?
Thinking about buying or selling a home while in debt? Here's when it may make sense, when it may be better to wait, and how to make the decision from your real numbers — not the calendar.
Read
Resources
Utah Water Rights Explained — Deeded Rights, Water Shares, Wells, and What Actually Transfers With the Land
In Utah, water is public property — what you own is the right to divert and beneficially use it. A plain-English guide to deeded rights, appurtenant rights, water shares, culinary and secondary water, wells, and irrigation rights, with real examples for Juab and Utah County.
Read