- #
2-4 unit multi-family
Attached or detached dwelling with 2-4 individual units, one home of which must be the borrower’s primary residence.
- A
Adjustable rate
An interest rate that changes, based on changes in a published market-rate index.
Appraisal
An estimate of how much a home would sell for if it were to be sold; also called market value.
- B
No terms under B.
- C
Closing
A meeting where documents are signed to “close the deal” on a mortgage; the time a mortgage begins.
Condominium
An individual unit in a real estate project in which each unit owner has title to a single unit in a building, plus an undivided interest in the common areas of the project, and sometimes the exclusive use of certain limited common areas.
Cooperative (Co-op)
A residential or mixed-use building or project where a corporation or trust holds title to the property; the cooperative corporation sells shares of stock representing the value of a single unit to individuals who receive a proprietary lease or an occupancy agreement as evidence of his or her right to possess a particular unit. This type of property is not eligible for Senior Equity Reverse Mortgage®.
Credit line increase
A feature in which your available credit line automatically increases each month.
- D
No terms under D.
- E
Equity preservation
A feature that allows you to retain a portion of the home’s value for yourself or for your heirs.
- F
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FHA mortgage insurance
A requirement on HUD loans, which reduces the risk of loss in the event that the outstanding balance exceeds the value of the property at the time that the mortgage is due and payable.
Fixed Rate
An interest rate option that remains the same for the life of the loan.
- G
No terms under G.
- H
Home equity
The value of the home less any money owed on it.
Home Equity Conversion Mortgage (HECM)
A type of FHA-insured reverse mortgage.
- I
No terms under I.
- J
No terms under J.
- K
No terms under K.
- L
LIBOR
The LIBOR (London Interbank Offered Rate) index is an average of the interest rates that major international banks charge each other to borrow U.S. dollars in the London money market.
Line of credit
Method of disbursement that allows you to withdraw funds when you need them, up to the maximum available amount.
Lump sum
Method of disbursement that allows you to withdraw all or part of your available credit.
- M
Manufactured home
Factory-built or prefabricated housing, a structure that has been partially or entirely constructed at another location and moved onto the property on a permanent foundation. A manufactured home may or may not be a mobile home.
Mobile home
A factory-assembled residence consisting of one or more modules built on a wheeled chassis and can be readied for occupancy without removing the chassis and/or wheels. It can be transported from site to site. This type of property is not eligible for Senior Equity Reverse Mortgage®.
Modular home
A complete livable dwelling that is built and assembled in a factory, transported to a site and placed on a foundation; a modular home is not supported on steel I-beams and is not equipped with wheels or axles.
Monthly installments
Method of disbursement that allows you to receive regular cash installments in the amount that you choose.
- N
Non-recourse loan
A loan for which the borrower will never have to owe more than the value of the home at the time the loan is due.
- O
Origination
The process of setting up a mortgage, including preparing documents.
Owner-occupied
Any property where the owner resides in all or part of the property.
- P
Planned Unit Development (PUD)
A project or subdivision that consists of individually owned dwellings and common property and improvements that are maintained by an owners’ association for the benefit and use of the individual PUD units.
Pre-payment
The payment of all or part of a mortgage debt before it is due.
- Q
No terms under Q.
- R
Reassessment
A feature that allows you to refinance the loan without the full costs of a traditional refinancing.
Refinance
Paying off an existing loan with the proceeds of a new loan with new terms (usually with the same property as collateral).
Rescission period
The right to cancel a home loan contract without any penalty within three business days after closing on non-purchase money mortgages or loans.
Reverse mortgage
A non-recourse home loan that gives cash advances to a senior homeowner and requires no repayment until the loan matures (i.e., borrower permanently leaves or sells the home).
- S
Servicing
Administering a loan after closing, including maintaining records and sending statements.
Servicing set-aside
An FHA requirement on HECM loans that requires lenders to “set aside” sufficient funds to pay the monthly servicing fee for the life of the loan.
Single family home
Attached or detached single dwelling.
- T
Treasury
An index of rates on U.S. Treasury borrowings that determines the changes in many adjustable-rate mortgages. The index is released by the Federal Reserve Board, which recalculates yields on a variety of Treasury securities as if each would mature in one year.
- U
No terms under U.
- V
No terms under V.
- W
No terms under W.
- X
No terms under X.
- Y
No terms under Y.
- Z
No terms under Z.