Home Equity Conversion Mortgage

Definition

HECM. An arrangement in which a homeowner borrows against the equity in his/her home and receives regular monthly tax-free payments from the lender. also called reverse-annuity mortgage or reverse mortgage.

Use this term in a sentence

You may want to try and take on a home equity conversion mortgage if you think that will be a better one to have.

​ Was this Helpful? YES  NO 25 out of 25 people found this helpful.

The home equity conversion mortgage was a good arrangement and I was not really looking forward to the whole process.

​ Was this Helpful? YES  NO 25 out of 25 people found this helpful.

Since they had already paid off their mortgage, they decided to look into a home equity conversion mortgage to try and receive money back from the bank.

​ Was this Helpful? YES  NO 25 out of 25 people found this helpful.

Show more usage examples...

Related Terms

Browse by Letter: # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
home equity tenure annuity