Learn all your Home Equity Options
Presented by Chad G. Peck, Principal Lending ManagerRecorded at our West Jordan office
Seven parts, in the order I'd walk you through them in the room. Pick any line to jump straight there.
Nothing is sold in this presentation. If you want numbers for your own home afterward, that's a separate conversation and you get to decide whether to have it.
Chad G. Peck, Principal Lending Manager, NMLS #310031
I've spent my career on one product for one kind of client: Utah homeowners deciding what role the house should play in the rest of their retirement. Last year that added up to more FHA-insured reverse mortgages than any other originator in the state.
I put this recording together because the seminar room only holds so many people, and because a lot of the folks who need this information would rather watch it at their own kitchen table, twice, with their son or daughter sitting next to them.
These get asked at every seminar, usually before the salad arrives.
No. You stay on title as the owner, the same as with any other mortgage. The lender holds a lien, not the deed. You can sell whenever you like, and any equity left over after the loan is repaid is yours or your heirs'.
It goes to your heirs, along with the loan balance. They choose: sell the home and keep whatever equity remains, refinance it into their own loan and keep the house, or hand it back to the lender and walk away owing nothing more. A HECM is non-recourse, so if the balance ends up higher than the home's value, the difference is covered by FHA insurance rather than by your family.
You're expected to keep up the same obligations you have now: property taxes, homeowners insurance, any HOA dues, and basic upkeep, and the home has to remain your primary residence. Fall behind on those and the loan can become due. That's the honest answer, and it's worth planning for rather than glossing over.
Usually not. Depending on the option, you can take a lump sum, monthly payments for as long as you live in the home, a line of credit you leave sitting there until you need it, or a combination. The line of credit is the piece most people haven't heard of, and it's the reason some homeowners set one up years before they intend to use a dollar of it.
That's the most common situation, not a disqualifier. The existing mortgage gets paid off out of the proceeds first, which is what eliminates the monthly payment. Whatever is left over is available to you.
Possibly. Two of the four options covered in the presentation start at 55, and one has no age requirement at all. That section starts at 11:05 if you'd like to go straight to it.
Bring the house, your age, and roughly what you still owe. Twenty minutes on the phone is usually enough to tell you whether this is worth pursuing.
Prefer to poke at the numbers yourself first? Try the calculator at HECMReverse.com.