home equity conversion

home equity conversion definition - business

home equity conversion

Conversion of the equity in a home (market value of the home less any remaining balance on an outstanding loan) into a cash payment or a stream of income. The loan representing the conversion is generally not repayable until the homeowner dies or moves out of the home.

The American Heritage® Dictionary of Business Terms Copyright © 2009 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

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