acceleration clause - the part of a contract that says when a loan may be declared due and payable

adjustable rate - an interest rate that changes, based on changes in a published market-rate index

annuity - a monthly cash payment you get from an insurance company for the rest of your life.

appraisal - an estimate of much a house would sell for if it were sold; also called its market value

appreciation - an increase in a home's value

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

creditline - a credit account that lets a borrower decide when to take money out and also how much to take out; also known as a "line-of-credit" or "credit line."

current interest rate - in the HECM program, the interest rate currently being charged on a loan; it equals the one-year rate for U.S. Treasury Securities, plus a margin (see below)

Fannie Mae - a private company that buys and sells mortgages; a government-sponsored business that is watched over by the federal government

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

federally insured reverse mortgage - a reverse mortgage guaranteed by the federal government so you will always get what the loan promises; also, a Home Equity Conversion Mortgage (HECM)

fixed monthly loan advances - payments of the same amount that are made to a borrower each month

home equity - the value of a home, subtracting any money owed on it

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

loan balance - the amount owed, including principal and interest; capped in a reverse mortgage by the value of the home when the loan is repaid.

lump sum - a single loan advance at closing

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

origination - the process of setting up a mortgage, including preparing documents

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 recission - 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

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

uninsured reverse mortgage - a reverse mortgage that becomes due and payable on a specific date