Home Equity Conversion Mortgage:
A Home Equity Conversion Mortgage is also called a reverse mortgage.
It is designed for older homeowners to convert their home equity into
ash.
(Home equity is the value of the home minus outstanding debts against
he home.)
Money is advanced to the home owner based on the amount of equity
n the home.
The mortgage debt is increased by the amount of the money advanced.
Interest accrues on the loan balance but no payments have to be made
until the home is sold or the borrowers die.
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