Home Equity Conversion Mortgage

A Home Equity Conversion Mortgage (HECM) is a type of reverse mortgage available to seniors aged 62 or older. It allows homeowners to convert part of their home’s equity into cash, which can be received as monthly payments, a lump sum, or a line of credit. The loan doesn’t require monthly payments; instead, it is repaid when the homeowner sells the house, moves out permanently, or passes away. HECMs enable seniors to access funds for income, healthcare, or expenses without selling their home, but they do reduce the home's equity and may impact inheritance.