Reverse Mortgage Information Terms

Here is some terms regarding a Reverse Mortgage.

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loan balance - the amount owed, including principal and interest; capped in a reverse mortgage by the value of the home when the loan is repaid.

lump sum - a single loan advance at closing

margin - in the HECM program, the amount added to the one-year Treasury rate to determine the initial and current interest rates, and to the 10-year Treasury rate to determine the expected interest rate

maturity - when a loan must be repaid; when it becomes "due and payable"

non-recourse mortgage - a home loan in which the borrower can never owe more than the home's value at the time the loan is repaid

Please visit Reverse Mortgage Terms Page for more helpful definitions.