Rates & Loans

HECM (Home Equity Conversion Mortgage)

The FHA-insured reverse mortgage that lets homeowners 62 and older turn home equity into cash.

What does hecm mean?

A HECM pays the homeowner from their equity — as a lump sum, line of credit or monthly payments — with no required monthly repayment; the balance is repaid when the home is sold or vacated. For 2026 the maximum home value used is $1,249,125 nationwide.

Put it to use

Reverse Mortgage Calculator This calculator is specifically designed to show you how the outstanding balance of a reverse mortgage can rapidly grow over a period of time.

Related terms

Reverse Mortgage FHA Loan Equity

All glossary terms