Part of 2 of our reverse mortgage glossary, focusing on the second half of the alphabet of some basic reverse mortgage terms. Early posts will focus on terms for beginners, but later posts will become more advanced. The glossary will then be posted on our website.
Mortgage Terminology Part 2:
Mortgage Servicer – handles reverse mortgage after it is closed; esnures terms of reverse mortgage are kept by both sides.
Principal Limit- The total loan proceeds available at origination from the reverse mortgage.
Principal Residence – The dwelling where the borrower maintains his or her permanent place of abode and spends the majority of the calendar year. The borrower may have only one Principal Residence at a time.
Processor – Person that handles reverse mortgage process between time of application and closing.
Refinance – the process of paying off one loan with the proceeds from a new loan secured by the same property.
Settlement – See “Closing.”
Title – A legal document establishing the right of ownership.
Title Search – A check of public records to ensure that a person is the legal owner of a property and that there are no liens or other claims outstanding on the property.