Home Equity Conversion Mortgage

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Home Real Estate Terms Glossary Home Equity Conversion Mortgage

What is a Home Equity Conversion Mortgage?

We can define a home equity conversion mortgage as a type of reverse mortgage loan that the Federal Housing Administration guarantees. Note that HECM is the most common kind of reverse mortgage. This home loan is only for homeowners who are at least 62. So, if you are of retirement age, you might want to consider a HECM.

Examples of Home Equity Conversion Mortgage (HECM)

  • Example 1: Proprietary reverse mortgages

Here’s Investopedia’s definition of a Home Equity Conversion Mortgage (HECM).

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