A Home Equity Conversion Mortgage (HECM) is a type of reverse mortgage that allows homeowners who are 62 years of age or older to convert a portion of the equity in their home into cash. This cash can be used for any purpose, such as supplementing retirement income, paying for healthcare expenses, or making home improvements. Unlike a traditional mortgage, where the borrower makes payments to the lender, with a HECM, the lender makes payments to the borrower. These payments are based on the value of the home and the borrower's age and can be received as a lump sum, a line of credit, or a combination of both.
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What does home equity conversion mortgage mean?
Related terms
Loan Application Fee
Government National Mortgage Association
Net Worth
Investment Property
Annual Mortgagor Statement
Loan Estimate (LE )
Bequest
Multi Listing Services
Equal Credit Opportunity Act.
Ground Rent
Queen Anne Style
Endorser
Call Option
Liquid Assets
Third-Party Origination
Brownstone
Asking Price
Credit Union
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