Are you a senior in the state of Utah considering a reverse mortgage? If so, we’ve put together this guide covering the Federal Housing Administration’s Home Equity Conversion Mortgage (HECM), which is by far the most popular version of this loan for UT seniors.
Beyond the basics of how it all works, you will find information on:
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An Introduction to Reverse Mortgages in Utah
There are really three financial strategies – meaning how you take the payout or funds – for home owners seeking to utilize a reverse mortgage.
We will examine all three:
- Taking a lump sum
- Opening a line of credit
- Monthly annuity
Each of these options has pros and cons to a home owner’s circumstances and level of personal financial responsibilities.
Taking a Lump Sum
This is probably the most popular of the three. There are a wide variety of reasons that a Utah home owner would want a lump sum. Some of these reasons are much more financially responsible than others.
Using a reverse mortgage to borrow enough equity in a house in a lump sum to pay off an existing mortgage is one of the most frequent uses of a reverse mortgage and is financially responsible approach. It is estimated that half of reverse-mortgage borrowers have used the funds for this purpose. This is a responsible way to take a lump sum payout, and often a necessary one – if you have an existed mortgage, you need to pay it off as part of the terms of obtaining a HECM loan.
According to one study, nearly 40% of seniors have a mortgage. This figure has doubled from 25 years ago. Using a reverse mortgage to eliminate a traditional mortgage turns a monthly budget on its head by freeing the funds of a home owner’s largest monthly expense.
Where taking a lump sum is ill advised is when it’s being used to buy toys. Home owners using their equity to purchase a sports car, new boat or anything that depreciates is simply not being financially responsible. If the home owner can’t afford it, they should not use a reverse mortgage to finance it.
Opening a Line of Credit in UT
Many financial gurus suggest that homeowners establish a line of credit using the HECM regardless of the need. The approach can secure the home owner with a safety net, and it can be utilized in several ways. As the need arises, it can protect a home owner’s savings or even increase their income in retirement.
In many cases, a line of credit it smarter than borrowing a lump sum and keeping it in reserve. Due to the inner-workings of the reverse-mortgage terms, the portion of a line of credit that is not used, grows in equity over the years, giving the homeowner access to more cash.
Monthly Annuity
The final option for a Utah senior considering a HECM loan is to receive a monthly annuity, which is just a fancy way of saying a monthly payout. Here, there are two options – with a tenure annuity, you’ll receive this payment for as long as you remain in the home. With the term annuity, you pick a set period of time to receive payments, at which point they stop.
You can also combine these three options into a plan that makes sense for you. For example, you could set up an annuity and a line of credit together. In fact, this flexibility is one of the best features of the reverse mortgage.
There are many ways to use a reverse mortgage to assist in achieving retirement goals. Knowing your limits and your discipline levels can secure your future.
Ready to learn more? Click here to get free information about a reverse mortgage in Utah!
Largest Utah Reverse Mortgage Lenders
To date, there have been well over 14,000 reverse mortgages originated in the state of Utah. Wells Fargo, a lender that existed the business years ago, is still the largest originator of all time. With that in mind, we’ve broken down the top lenders into two groups, the all time leaders and the leaders since 2012.
All Time
| Lender | Loans | Total Principal Limit |
|---|---|---|
| WELLS FARGO | 1,926 | 382,175,860 |
| CHERRY CREEK MORTGAGE CO INC | 1,510 | 535,378,773 |
| AMERICAN ADVISORS GROUP | 1,397 | 531,358,310 |
| AMERICA FIRST FEDERAL CREDIT UNION | 1,107 | 281,490,321 |
| REVERSE FREEDOM LLC | 986 | 485,962,367 |
| MOUNTAIN AMERICA CREDIT UNION | 872 | 217,143,908 |
| HERITAGE HOME LOANS LLC | 822 | 378,705,209 |
| CHERRY CREEK MORTGAGE LLC | 695 | 373,537,697 |
| ZIONS FIRST NATIONAL BANK | 679 | 105,266,590 |
| FSI MORTGAGE LLC | 672 | 141,365,136 |
| AIM MORTGAGE INC | 583 | 57,188,171 |
| FINANCE OF AMERICA REVERSE LLC | 546 | 211,249,800 |
| SECURITYNATIONAL MORTGAGE COMPANY | 519 | 165,676,851 |
| FINANCIAL FREEDOM SENIOR FUNDING CORP | 420 | 76,946,705 |
| ACADEMY MORTGAGE CORPORATION | 382 | 157,081,821 |
| VERITAS FUNDING LLC | 363 | 136,482,121 |
| FAIRWAY INDEPENDENT MORTGAGE CORPORATION | 349 | 158,097,342 |
| ACCESS MORTGAGE LLC | 336 | 63,550,554 |
| REPUBLIC MORTGAGE HOME LOANS LLC | 331 | 83,230,781 |
| ONE REVERSE MORTGAGE LLC | 291 | 77,804,775 |
Since 2012:
| Lender | Loans | Total Principal Limit |
|---|---|---|
| AMERICAN ADVISORS GROUP | 1,382 | 527,985,310 |
| CHERRY CREEK MORTGAGE CO INC | 1,221 | 444,282,814 |
| REVERSE FREEDOM LLC | 986 | 485,962,367 |
| HERITAGE HOME LOANS LLC | 822 | 378,705,209 |
| CHERRY CREEK MORTGAGE LLC | 695 | 373,537,697 |
| AMERICA FIRST FEDERAL CREDIT UNION | 509 | 159,068,579 |
| VERITAS FUNDING LLC | 362 | 136,307,121 |
| FINANCE OF AMERICA REVERSE LLC | 362 | 165,220,500 |
| ACADEMY MORTGAGE CORPORATION | 353 | 150,172,661 |
| FAIRWAY INDEPENDENT MORTGAGE CORPORATION | 346 | 157,480,816 |
Want to learn more? Click here to get free information about a reverse mortgage!
Current & Historic Interest Rates
HUD releases data on reverse mortgage originations each month, and one data point is the interest rate on the loan. This is likely the most reliable source on reverse mortgage rates available. Although it’s important to keep in mind that these are just averages and HUD only provides data two months after the fact, this table should give you a good idea of what’s available in the Utah market.
Current Rates
| Date | Fixed Rate | Adjustable Rate |
|---|---|---|
| 2019-01-01 | 4.60% | 4.85% |
| 2019-02-01 | 4.67% | 4.74% |
| 2019-03-01 | 4.71% | 4.64% |
| 2019-04-01 | 4.65% | 4.68% |
| 2019-05-01 | 4.58% | 4.50% |
| 2019-06-01 | 4.44% | 4.44% |
| 2019-07-01 | 4.37% | 4.20% |
| 2019-08-01 | 4.35% | 3.83% |
| 2019-09-01 | 4.34% | 4.00% |
| 2019-10-01 | 4.58% | 3.88% |
| 2019-11-01 | 4.47% | 3.92% |
| 2019-12-01 | 4.30% | 3.74% |
| 2020-01-01 | 4.32% | 3.73% |
| 2020-02-01 | 4.37% | 3.74% |
| 2020-03-01 | NA | 3.68% |
| 2020-04-01 | 3.92% | 3.40% |
| 2020-05-01 | 4.56% | 3.05% |
| 2020-06-01 | 3.98% | 2.98% |
| 2020-07-01 | 3.43% | 2.93% |
| 2020-08-01 | 3.48% | 2.87% |
| 2020-09-01 | 3.48% | 2.79% |
| 2020-10-01 | 3.37% | 2.80% |
| 2020-11-01 | 3.42% | 2.75% |
| 2020-12-01 | 3.41% | 2.68% |
| 2021-01-01 | 3.20% | 2.63% |
| 2021-02-01 | 3.31% | 2.54% |
| 2021-03-01 | 3.24% | 2.43% |
| 2021-04-01 | 3.50% | 2.33% |
| 2021-05-01 | 3.37% | 2.28% |
| 2021-06-01 | 3.31% | 2.18% |
| 2021-07-01 | 3.28% | 2.15% |
| 2021-08-01 | 3.38% | 2.08% |
| 2021-09-01 | 3.31% | 2.10% |
| 2021-10-01 | 3.36% | 2.05% |
| 2021-11-01 | 3.42% | 2.07% |
| 2021-12-01 | 3.43% | 2.17% |
| 2022-01-01 | 3.32% | 2.28% |
| 2022-02-01 | 3.47% | 2.42% |
| 2022-03-01 | 3.49% | 2.73% |
| 2022-05-01 | 3.98% | 3.61% |
| 2022-04-01 | 3.50% | 3.08% |
| 2022-06-01 | 4.20% | 3.96% |
| 2022-07-01 | 5.13% | 4.28% |
| 2022-08-01 | 5.82% | 4.89% |
| 2022-09-01 | 5.71% | 5.25% |
| 2022-10-01 | 5.70% | 5.76% |
| 2022-11-01 | 5.39% | 6.30% |
| 2022-12-01 | 6.48% | 6.84% |
| 2023-01-01 | 6.90% | 6.84% |
| 2023-02-01 | NA | 6.96% |
| 2023-03-01 | NA | 7.16% |
| 2023-04-01 | 6.56% | 6.89% |
| 2023-05-01 | NA | 6.82% |
| 2023-06-01 | NA | 7.01% |
| 2023-07-01 | NA | 7.34% |
| 2023-08-01 | NA | 7.44% |
| 2023-09-01 | NA | 7.55% |
| 2023-10-01 | NA | 7.60% |
| 2023-11-01 | 7.56% | 7.60% |
| 2023-12-01 | NA | 7.48% |
| 2024-01-01 | NA | 7.31% |
| 2024-02-01 | NA | 7.06% |
Historic Rates
| Date | Fixed Rate | Adjustable Rate |
|---|---|---|
| 2014-01-01 | 4.96% | 2.43% |
| 2014-02-01 | 5.01% | 2.37% |
| 2014-03-01 | 4.98% | 2.39% |
| 2014-04-01 | 5.00% | 2.44% |
| 2014-05-01 | 4.93% | 2.43% |
| 2014-06-01 | 4.99% | 2.44% |
| 2014-07-01 | 4.98% | 2.50% |
| 2014-08-01 | 4.97% | 2.53% |
| 2014-09-01 | 4.90% | 2.61% |
| 2014-10-01 | 4.95% | 2.66% |
| 2014-11-01 | 4.97% | 2.64% |
| 2014-12-01 | 4.92% | 2.75% |
| 2015-01-01 | 4.84% | 2.72% |
| 2015-02-01 | 4.88% | 2.76% |
| 2015-03-01 | 4.95% | 2.86% |
| 2015-04-01 | 4.82% | 2.97% |
| 2015-05-01 | 4.84% | 3.12% |
| 2015-06-01 | 4.91% | 3.10% |
| 2015-07-01 | 4.85% | 3.09% |
| 2015-08-01 | 4.91% | 3.13% |
| 2015-09-01 | 4.95% | 3.13% |
| 2015-10-01 | 4.90% | 3.14% |
| 2015-11-01 | 4.86% | 3.24% |
| 2015-12-01 | 4.87% | 3.40% |
| 2016-01-01 | 4.80% | 3.41% |
| 2016-02-01 | 4.89% | 3.53% |
| 2016-03-01 | 4.87% | 3.62% |
| 2016-04-01 | 4.85% | 3.76% |
| 2016-05-01 | 4.92% | 3.97% |
| 2016-06-01 | 4.89% | 4.05% |
| 2016-07-01 | 4.86% | 3.94% |
| 2016-08-01 | 4.85% | 4.11% |
| 2016-09-01 | 4.85% | 4.44% |
| 2016-10-01 | 4.81% | 4.31% |
| 2016-11-01 | 4.80% | 4.51% |
| 2016-12-01 | 4.89% | 4.42% |
| 2017-01-01 | 4.91% | 4.46% |
| 2017-02-01 | 4.90% | 4.30% |
| 2017-03-01 | 5.00% | 4.44% |
| 2017-04-01 | 4.98% | 4.36% |
| 2017-05-01 | 4.96% | 4.33% |
| 2017-06-01 | 4.98% | 4.33% |
| 2017-07-01 | 4.84% | 4.35% |
| 2017-08-01 | 4.92% | 4.42% |
| 2017-09-01 | 4.91% | 4.42% |
| 2017-10-01 | 5.00% | 4.38% |
| 2017-11-01 | 4.97% | 4.53% |
| 2017-12-01 | 4.92% | 4.57% |
| 2018-01-01 | 4.80% | 4.53% |
| 2018-02-01 | 4.67% | 4.48% |
| 2018-03-01 | 4.48% | 4.40% |
| 2018-04-01 | 4.66% | 4.63% |
| 2018-05-01 | 4.42% | 4.71% |
| 2018-06-01 | 4.42% | 4.47% |
| 2018-07-01 | 4.58% | 4.67% |
| 2018-08-01 | 4.43% | 4.54% |
| 2018-09-01 | 4.37% | 4.59% |
| 2018-10-01 | 4.45% | 4.66% |
| 2018-11-01 | 4.53% | 4.69% |
| 2018-12-01 | 4.46% | 4.79% |
Top Cities in Utah by Total HECM Loans Originated
| Rank | City | Zip | Total |
|---|---|---|---|
| 1 | SAINT GEORGE | 84790 | 1,243 |
| 2 | ST GEORGE | 84790 | 1,116 |
| 3 | WASHINGTON | 84780 | 701 |
| 4 | SAINT GEORGE | 84770 | 668 |
| 5 | BOUNTIFUL | 84010 | 496 |
| 6 | HURRICANE | 84737 | 495 |
| 7 | WEST VALLEY CITY | 84120 | 412 |
| 8 | ST GEORGE | 84770 | 390 |
| 9 | SOUTH JORDAN | 84095 | 390 |
| 10 | SALT LAKE CITY | 84121 | 380 |
| 11 | SALT LAKE CITY | 84106 | 372 |
| 12 | SANDY | 84094 | 340 |
| 13 | WEST JORDAN | 84088 | 334 |
| 14 | LEHI | 84043 | 326 |
| 15 | SANDY | 84070 | 320 |
| 16 | SALT LAKE CITY | 84109 | 312 |
| 17 | OGDEN | 84404 | 312 |
| 18 | SANDY | 84092 | 300 |
| 19 | RIVERTON | 84065 | 295 |
| 20 | MIDVALE | 84047 | 294 |
| 21 | LAYTON | 84041 | 292 |
| 22 | MURRAY | 84107 | 290 |
| 23 | WEST JORDAN | 84084 | 286 |
| 24 | SANDY | 84093 | 282 |
| 25 | IVINS | 84738 | 278 |
| 26 | ROY | 84067 | 270 |
| 27 | SALT LAKE CITY | 84118 | 265 |
| 28 | MAGNA | 84044 | 254 |
| 29 | AMERICAN FORK | 84003 | 241 |
| 30 | WEST VALLEY CITY | 84119 | 239 |
Department of Housing and Urban Development Offices
Salt Lake City Field Office
Department of Housing and Urban Development
125 South State Street
Suite 3001
Salt Lake City, Utah 84138
Phone: (801) 524-6070
Email: Customer Service
Fax: (801) 524-3439
TTY: (800) 877-8339 or dial 7-1-1 (Not available in all areas.)
Jurisdiction: State of Utah
Kelly Jorgensen, Field Office Director
Office Hours: Monday through Friday, 8:00 a.m. to 4:30 p.m.
Housing Counselors
UTAH STATE UNIVERSITY – FAMILY LIFE CENTER – HFC
493 N 700 E
Logan, Utah 84321-4231
Phone: 435-797-5426
E-mail: [email protected]
Website: www.usu.edu/fchd/community/housing/index.cfm
AAA FAIR CREDIT FOUNDATION
230 W 200 S Ste 3104
Salt Lake City, Utah 84101-3428
Phone: 801-483-0999
Fax: 801-364-8885
E-mail: [email protected]
Website: www.faircredit.org
Want to learn more? Click here to get free information about a reverse mortgage!
