Home Equity Conversion Mortgage

Retirement planning is about ensuring you have a steady income stream to support yourself comfortably. For many retirees, tapping into the equity in their homes becomes an attractive option. Two terms often come up in this context: reverse mortgage and Home Equity Conversion Mortgage (HECM). Although they are related, there are some critical differences between them. Understanding these options can help you make an informed decision about what suits your financial needs. What is a Reverse Mortgage? A reverse mortgage allows homeowners to access the equity in their home and convert it into cash without selling their property. It’s often…