Reverse Mortgage

A 5/6 hybrid adjustable-rate mortgage (5/6 hybrid ARM) has an initial fixed five-year interest rate, and then adjusts every six months. read more

An adjustment date is when financial changes will be made to a contract, transaction, or ARM interest rate as agreed to by all parties in the transaction. read more

A home equity conversion mortgage (HECM) is a type of Federal Housing Administration (FHA) insured reverse mortgage. read more

A reverse mortgage financial assessment is a review of the borrower’s credit history, employment history, debts, and income during the reverse mortgage application process. read more

Reverse mortgage net principal limit is the maximum amount of money a borrower using a reverse mortgage can receive, net of costs and fees. read more

A single-disbursement lump-sum payment plan allows the borrower to receive reverse mortgage proceeds when the loan closes and no proceeds later.  read more

A single-purpose reverse mortgage offers regular advance payments of a borrower's equity for a contractually specified purpose. read more

A tenure payment plan allows homeowners to receive reverse mortgage proceeds in equal monthly amounts as long they live in the primary residence. read more

A term payment plan is an option for receiving reverse mortgage proceeds that gives the homeowner equal monthly payments for a set period of time. read more

Total annual loan cost is the expected total cost of a reverse mortgage over the life of the loan. read more