Cap
A limit on the amount an adjustable interest rate may go up or down during a specified time period

Closing
A meeting where documents are signed to "close the deal" on a mortgage; the time a mortgage begins

Margin
The amount added to an interest rate index to determine the initial, current, and expected interest rates

Maturity
When a loan must be repaid; when it becomes "due and payable"

Mortgage
A legal document making a home available to a lender to repay a debt

Non-recourse mortgage
A home loan in which the borrower generally cannot owe more than the home's value at the time the loan is repaid

Origination
The process of setting up a mortgage, including preparing documents

Property tax deferral (PTD)
Reverse mortgages that pay annual property taxes; usually offered by state or local governments

Proprietary reverse mortgage
A reverse mortgage product owned by a private company

Reverse mortgage
A home loan that gives cash advances to a homeowner, requires no repayment until a future time, and is capped by the value of the home when the loan is repaid

Right of rescission
A borrower's right to cancel a home loan within three business days of the closing

Servicing
Administering a loan after closing, such as maintaining loan records and sending statements

Tenure advances
Fixed monthly loan advances for as long as a borrower lives in a home

Term advances
Fixed monthly loan advances for a specific period of time

Total Annual Loan Cost (TALC) rate
The projected annual average cost of a reverse mortgage including all itemized costs