A 2- to 4-unit property is not eligible for second home status.
See also: prepayment penalty.
Insurance A contract that provides compensation for specific losses in exchange for a periodic payment.
Visit the Ginnie Mae website Back to top H Hazard insurance See: Homeowners insurance Home equity line of credit (heloc) A line of credit secured by the borrower's residence.Legal description, a property description, recognized by law, that is sufficient to locate and identify the property without oral testimony.Lenders may charge a lower interest rate for the initial period of the loan.Top Bankruptcy Q: What happens if I file for Bankruptcy while I have a reverse mortgage?Loan-to-value (LTV) The percentage where new woman to get to know relationship between the amount of the loan and the appraised value or sales price (whichever is lower). If arrangements to pay the reverse mortgage are not made with your loan servicer, then your loan servicer may proceed with foreclosure between 30 days and six months from when your loan has been called due and payable. Your loan servicer must also issue to you a statement advising you of any impending interest rate change that may impact your reverse mortgage.Origination date The date on which a loan is funded or disbursed.Loan servicing After you obtain a loan, the company you make the payments to is "servicing" your loan.Lenders must conduct a financial assessment of every reverse mortgage borrower to ensure he or she has the financial capacity to continue paying mandatory obligations, such as property taxes and homeowner's insurance, as stipulated in the Loan Agreement.Points An amount paid to the lender, typically at closing, to lower (or buy down) the interest rate.No closing cost loan A loan in which the borrower is not required to pay cash out-of-pocket at closing for the normal closing costs.Expressed as a percentage.Back to top J Judgment A decree by a court of law that one person is indebted to another for a specified amount.Q: May I participate in a tax exemption program?Break even point The point at which total income equals total expenses.
What-if analysis An affordability analysis that is based on a what-if scenario.
A: The monthly servicing fee covers the costs associated with administering your reverse mortgage loan.
Lifetime adjustment cap A limit on how much the variable interest rate can increase during the term of a loan.