Hecm Meaning and Definition
Hecm
Pronunciation
/ˈhɛkm/
Part of Speech
Abbreviation
Definition
A Home Equity Conversion Mortgage (HECM) is a type of reverse mortgage that allows homeowners to borrow money using the equity in their home, without making monthly payments, but still leaving them with the right to live in their home as long as they wish.
Etymology
The term “HECM” is a shortened form of “Home Equity Conversion Mortgage” and was introduced by the United States Department of Housing and Urban Development (HUD) in 1988 as a new type of reverse mortgage.
Usage Notes
HECMs are typically used by homeowners who have a significant amount of equity in their property and who want to access a portion of that equity for various purposes, such as paying off debts, financing home improvements, or covering living expenses.
Cultural References
HECMs have been featured in various financial publications, including Forbes, Kiplinger, and AARP.
Idiomatic Expressions or Phrases
Related Words or Phrases
- Reverse Mortgage
- Home Equity Loan
Collocations
- HECM loan
- HECM interest rate
Frequency of Use
HECMs are a relatively rare financial product, but their use has increased in recent years due to rising home values and lower interest rates.
Common Misspellings
- Heckim
- Heekem