Guest Post by Kelly Sansom, Utah Mortgage Expert at ClearPath
The Two Phone Calls That Change Everything
Picture this: Two fathers, both 68, both living in homes they’ve spent decades building equity in. Both have children in their 30s and 40s — facing high housing costs, student debt, and limited opportunities to get ahead.
Father #1 gets the call every parent dreams of: “Dad, we got the house! The seller accepted our offer, and thanks to your help with the down payment, we’re finally homeowners.”
Father #2 gets a very different call: “Dad, the landlord raised the rent again. We just can’t save for a down payment, no matter how hard we try. We’re moving the kids to another school — again.”
This is the reality many Utah families face today. One parent becomes part of their child’s breakthrough—the other watches from the sidelines. The difference often comes down to whether families know how to strategically use the equity in their home while they’re still alive — when it matters most.
The Problem with Home Equity: Rich on Paper, Poor in Impact
For many Utah retirees, the family home is their biggest financial asset. A Davis County couple may be sitting on $400,000 of equity in a home now worth $650,000. A Park City retiree may have even more. Yet that equity often sits untapped while their children face financial headwinds.
It might be a 35-year-old trying to save for a down payment in Salt Lake’s competitive housing market, a 40-something still buried in student debt, or an entrepreneurial child who needs capital to seize an opportunity. The old wisdom says, “Don’t touch your equity — save it for emergencies. Leave it to the kids when you’re gone.” But by the time an inheritance arrives, children are often in their 60s themselves. The opportunities to change their trajectory have long passed.
Timing Is Everything in Family Wealth
The right support, at the right stage, can create decades of compounding impact. Helping your child with a down payment at age 30 gives them decades of equity growth. Paying off a student loan in their 20s may allow them to redirect income into investments sooner. Supporting a business launch in their 40s can change the trajectory of an entire family.
In Utah, these stages play out clearly.
In the foundation years between 25 and 35, first-time buyers often need $60,000 or more just to compete. A young couple in Davis County may face years of renting unless family steps in.
During the opportunity years of 35 to 45, capital matters most for business launches, career shifts, and family needs. A $100,000 investment in a business or $25,000 toward education for grandchildren may set up long-term stability.
And in the acceleration years between 45 and 55, college costs often exceed $30,000 annually. Paying off debt or purchasing an investment property in Ogden or West Valley can multiply family wealth.
The inheritance irony is that most children inherit money only in their 60s or 70s — long after those peak opportunity years have passed. By then, the money may do little more than sit in conservative investments rather than fueling life-changing opportunities.
How Reverse Mortgages Work in Utah
That’s where a reverse mortgage can make sense. For homeowners in Utah age 62 and older, a reverse mortgage allows you to convert part of your home equity into usable funds — without giving up ownership of your home and without taking on monthly payments.
Here’s how it works: Any existing loan balance is paid off, eliminating your monthly mortgage payment. You decide how to receive the funds: as a lump sum, a line of credit, or monthly income. The loan balance is repaid only when you sell, move, or pass away. You keep the title; your name stays on the deed, and you remain in control.
For example, a $650,000 Utah home might allow access to $350,000–$390,000 in equity. You could use $80,000 for a down payment to help your child buy a home in Salt Lake County, while keeping the rest in a growing line of credit. If the home appreciates — and Utah homes historically have — your heirs may still inherit significant equity.
Think of it as unlocking a vault in your walls. Your money is already there. A reverse mortgage simply gives you access to it in a way that can strengthen your family now.
Clearing Up the Myths (The Big 6 Fears)
Fear #1: “The bank will take my home.”
Reality: You retain full ownership and title. The reverse mortgage is simply a lien, like any other loan. You still make decisions about selling, improving, or maintaining your home.
Fear #2: “I’ll leave nothing for my kids.”
Reality: You may leave less equity, but your children can gain more overall wealth through earlier support. Helping with a $100,000 down payment may lead to hundreds of thousands in long-term appreciation.
Fear #3: “What if I owe more than my home is worth?”
Reality: Reverse mortgages are non-recourse loans. Neither you nor your heirs will ever owe more than the home’s value, even if the housing market drops. FHA insurance covers the difference.
Fear #4: “I’ll be stuck and won’t be able to move.”
Reality: If you sell, the reverse mortgage is simply paid off from the proceeds. Many Utah retirees have sold a larger home in Park City or Salt Lake, paid off the reverse mortgage, and downsized into something more manageable — sometimes even using a new reverse mortgage on the new home to keep payments at zero.
Fear #5: “What if my spouse isn’t on board?”
Reality: It’s common for couples to disagree. One spouse worries about security, while the other wants to help children sooner. The best approach is to start small — use a portion of equity for a specific goal, like a grandchild’s tuition, and see the impact firsthand.
Fear #6: “What about fairness among my kids?”
Reality: Equal doesn’t always mean simultaneous. Helping one child with a down payment now and another with tuition later can still be fair. The key is transparency and keeping records of amounts given.
Examples of How Home Equity Could Be Used in Utah Families
Imagine Michael, a young entrepreneur in Bountiful. If his father accessed $75,000 in home equity through a reverse mortgage, that money could launch a food truck business starting at local Utah festivals. Within a few years, it might expand to multiple trucks and eventually a brick-and-mortar restaurant — giving the parent the joy of seeing the success their equity helped create.
Picture Jennifer, a nursing student in West Jordan. With $60,000 from a reverse mortgage, her grandparents could cover tuition, allowing her to graduate debt-free, begin a career at a Salt Lake City hospital, and share her gratitude each week with them.
Or think of David and Lisa in Park City, who decide to use a reverse mortgage to help their son purchase his first rental property in Ogden. That property could generate $2,000 a month and appreciate significantly over time, multiplying family wealth across generations.
These examples aren’t actual client case studies — they’re illustrations of how Utah families might strategically use home equity to create lasting impact. They show the potential for parents and grandparents to witness milestones of pride, gratitude, and shared success while still alive. For families specifically considering options, resources like Bountiful reverse mortgages can show what’s possible when equity is unlocked at the right time.
The Relationship Dividends
Reverse mortgages are not just about money — they’re about family dynamics. Before using home equity, weekly calls might be dominated by money stress, parents may feel helpless, and gatherings may be overshadowed by financial tension. Afterward, the conversations change. Calls are filled with excitement about new homes or businesses, parents feel purposeful and appreciated, and grandchildren benefit from more stability and opportunities.
Helping during genuine need breeds gratitude, not entitlement. When parents stay involved as mentors, their children view the support as a bridge, not a handout.
Implementation: Turning Equity into Action
Families considering this strategy should take it step by step.
In the first week, assess your available equity based on your home’s current value and any remaining loan balance, and list your children’s most pressing financial needs with timelines and amounts.
In week two, schedule HUD-approved counseling and meet with a mortgage professional to understand your options. Compare reverse mortgages with HELOCs or refinances specific to Utah lending conditions.
By week three, it’s time for family conversations. Discuss with your spouse first, then approach children carefully, focusing on opportunities rather than promises.
By month two, you’ll be ready for implementation — completing applications and appraisals, deciding whether to access funds as a lump sum, line of credit, or monthly payments, and making your first strategic family gift while keeping records for transparency.
From there, it’s ongoing: celebrate successes, stay engaged as a mentor and guide, and revisit your strategy annually with your advisor.
From Spectator Parent to Hero Parent
The old model was to watch from the sidelines, hoping an inheritance might someday help. The new model is being actively present — using your resources strategically to be part of your children’s breakthroughs while you’re still alive to celebrate them.
I’ve seen Utah parents use reverse mortgages not to replace retirement planning, but to complement it — balancing their own security with timely family support.
Where Thrive Retirement Planning Fits In
I’ll be the first to say: a reverse mortgage isn’t right for everyone. That’s why I often point families I work with to Thrive Retirement Planning. They specialize in helping Utah families build comprehensive retirement strategies — from tax planning to income planning — and making sure tools like reverse mortgages fit into the bigger picture.
Some of the most successful outcomes I’ve seen are when families bring ClearPath’s mortgage expertise together with Thrive’s retirement planning approach. Together, they help families give every asset a job — including home equity.
Next Steps for Utah Families Considering a Reverse Mortgage
If you’re wondering whether this strategy could help your family, start by assessing your equity. Understand your current home value and remaining mortgage balance. Clarify your family goals and decide whether the priority is helping with a home purchase, education, or business funding. Then seek guidance — talk with a HUD-approved counselor, consult with a mortgage professional, and most importantly, involve your financial planner.
At ClearPath, my mission is to make the loan process simple and stress-free for Utah families. At Thrive Retirement Planning, their mission is to ensure those mortgage decisions align with long-term retirement strategies.
Final Thought
Your home equity isn’t just a number on a statement. It’s the difference between watching your children struggle with Utah’s rising costs and watching them thrive in Utah’s dynamic economy. A reverse mortgage may not be for everyone, but for many, it’s the bridge between leaving a legacy later and living a legacy now.
The phone call will come either way. Which one do you want to answer?
About the Author:
Kelly Sansom is a Utah mortgage expert and founder of ClearPath Utah Mortgage. As a local partner in homeownership, his mission is to make the home loan process simple and stress-free. He collaborates with trusted advisors, including Thrive Retirement Planning, to help families align home financing with long-term financial goals.