Glossary
A Definitive Guide on Reverse Mortgages
A Definitive Guide on Reverse Mortgages A reverse mortgage is a process through which a loan is made available to senior citizens against their home equity. Unlike conventional mortgage or other traditional methods of loan, there is no income or credit requirement to obtain reverse mortgage loan. The repayment of the loan is deferred till [...]
Reverse Annuity Mortgage – Reverse Mortgage Glossary
Reverse annuity mortgage (RAM) is the technically correct term for a reverse mortgage that is paid to the homeowner in the form of an annuity – i.e. a level stream of cash payments over a specified period of time. Modern reverse mortgage products typically have four major payment options: 1. tenure (paid to the homeowner [...]
Applicable Federal Rate – Reverse Mortgage Glossary
The applicable federal rate (AFR) is an interest rate published monthly by the U.S. Treasury (IRS) to calculate imputed interest charges. The AFR is the rate used by the IRS to determine interest charges, even when no interest has actually been charged. The AFRs for a particular month are generally made available during the third [...]