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1009 Form The name given to
the reverse mortgage loan application form by HUD.
203-b Limit The dollar limit
imposed by the FHA for a HECM loan in your specific county. Limits change
based on geography.
Acceleration Clause The
portion of loan that identifies under what terms the loan can become due
and payable.
Adjustable Rate Mortgage A
mortgage in which the interest rate paid by the borrower fluctuates based
on movement in a market-rate index.
Appraisal An independent
evaluation of the fair market value of your home by a certified
professional.
Appreciation The amount a
homes value has increased over time.
Attorney in fact The person
who holds a durable power of attorney over another.
Cap The limit the rate on an
adjustable rate mortgage can go up (or down) over the course of a loan.
Closing The end of the loan
process where all final documents are signed by the borrower and the term
of the loan officially begins.
Co-Borrower Any person who
signs a loan in addition to the primary borrower.
Comparables A review of homes
recently sold surrounding a property that is being evaluated for
appraisal/worth.
Counselor Independent
educators whose goal is to educate potential borrowers on the terms of a
reverse mortgage.
Creditline An account
that allows the borrower the ability to advance funds in the amount and
for the duration they choose.
Current Interest Rate In the
HECM program, the rate currently being charged on the loan. The rate is
linked to the one-year Treasury.
Metrocities Mortgage
assumes no liability for errors or omissions related to this Glossary of
terms. Please discuss questions with a loan officer or certified reverse
mortgage counselor.
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