Home Equity Conversion Mortgage (HECM)

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Also called a "reverse mortgage," it is used y senior homeowners 62 years or older to convert the equity in their home into monthly streams of income and/or a line of credit. The loan is repaid when they no longer occupy the home. The loan is made by a mortgage lender, bank, credit union or savings & loan and is insured by the Federal Housing Administration (FHA)

Related Definitions:

• Federal Housing Administration (FHA)