203-b limit is the dollar limit in each county for how much of a home's value can be used to determine the amount of money you can get from a federally insured HECM reverse mortgage.

Adjustable rate is an interest rate that changes, based on changes in a published market-rate index.

APR is an annual percentage rate which is a measure of the total cost of the loan expressed as a yearly percentage rate. It is commonly used to compare loan programs from different lenders.

Appraisal an appraisal is an estimate of what amount of money your home may sell for.

Appreciation is an increase in a home's value.

Cap is a limit on the amount an adjustable interest rate may go up or down during a specified time period. The first number is the maximum increase allowed for one adjustment period; the second is the total increase allowed over the life of the loan.

Closing is a meeting where documents are signed to "close the deal" on a mortgage.

Expected interest rate - HECM program- the expected rate is fixed throughout the life of the loan and is used to determine payments to the borrower.

Federal Housing Administration (FHA) is the part of the U. S. Department of Housing and Urban Development (HUD) that insures HECM loans.

Fixed monthly loan advances are payments of the same amount that are made to a borrower each month for as long as a borrower lives in a home.

Home equity the value of ownership built up in a home or property that represents the current market value of the house less any remaining mortgage payments.

Home Equity Conversion Mortgage (HECM) is the only reverse mortgage program insured by the Federal Housing Administration, a federal government agency.

Index a statistical measure for setting an adjustable rate.

Initial interest rate interest rate, often discounted below the fully indexed rate that is in effect during the period before the first rate change of an adjustable-rate mortgage (ARM).

Jumbo loan a mortgage with a loan amount exceeding the conforming loan limits set by the Office of Federal Housing Enterprise Oversight (OFHEO), and therefore, not eligible to be purchased, guaranteed or securitized by Fannie Mae or Freddie Mac. OFHEO sets the conforming loan limit size on an annual basis.

Leftover equity equals the sale price of the home, minus the total amount owed on it and the cost of selling it; the amount the homeowner, heirs or estate would get when the house is sold and the loan is paid off.

Line of credit is amount of money available from loan for future draws.

Loan to Value Ratio (LTV) is a mathematical calculation which expresses the amount of a first mortgage lien as a percentage of the total appraised value of real property.

Lump sum is a single loan advance at closing.

Margin is used to calculate the loan's monthly interest rate; Margin + index = new rate when the loan adjusts.

Maturity is when a loan must be repaid.

Mortgage Insurance is insurance against loss provided to a mortgage lender in the event of borrower default.  In most cases, the borrower pays the premiums.

Non-recourse mortgage is a home loan in which the borrower can never owe more than the home's value at the time the loan is repaid.

Origination is the process of setting up a mortgage, including preparing documents.

Origination fee is a one-time fee paid to the lender at the time the loan closes.

Proprietary reverse mortgage is a reverse mortgage product owned by a private company.

Reverse mortgage a mortgage in which a homeowner, usually an elderly or retired person, borrows money in the form of annual payments which are charged against the equity of the home.

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

Servicing is administering a loan after closing, such as maintaining loan records and sending statements.

Tenure advances are equal monthly payments as long as at least one borrower lives and continues to occupy the property as a principal residence.

Term advances are equal monthly payments for a fixed period of months selected.

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

T-rate is the rate for U.S. Treasury Securities; Used to determine the initial, expected, and current interest rates for the HECM program.