Enter Zip, City, or County... i.e. orange,NY or 90019
Search Method:    regular time edocs

Resources > Glossary > Reverse Mortgage

Glossary of Notary Public, Mortgage, Signing Agent, and Loan Signing Terms.

0-9  A  B  C  D  E  F  G  H  I  J  K  L  M  N  O  P  Q  [R]  S  T  U  V  W  X  Y  Z  
Common Terms 1   Common Terms 2

Reverse Mortgage

Function: noun

Definition 1:
A type of mortgage typically used by equity-rich seniors, where the lender makes regular tax-free monthly payments to the borrower either for life, or until the borrower sells the property. To qualify for a reverse mortgage in the United States, the borrower must be at least 62 years of age. There are no restrictions regarding credit score or income, since reverse mortages are for people who are retiring or planning to retire. Funds from a reverse mortgage can be used for any purpose. Pre-existing mortages must be paid of if the borrower gets a reverse mortgage. It is important to note that the homeowner must ensure that taxes and insurance are always kept current. If either insurance or taxes lapse, it could result in a default on the reverse mortgage.

Definition 2:
Reverse Mortgages are more time consuming for a notary public to supervise signing than a regular loan. However, notaries are getting paid a higher rate if they are experienced in reverse mortgages. Please read our blog about Reverse mortgages.

Definition 3:
There are two notes and two mortgage deeds in a Reverse Mortgage. There is likely to be more to notarize in a reverse mortgage, and the signers are usually slower due to their age.

Definition 4:
A Reverse Mortgage is a Mortgage where the lender makes monthly payments to the borrower instead of vice versa.

Thesaurus / Related Terms
Adjustable Rate Mortgage
Balloon Mortgage
FHA Mortgage
Graduated Payment Mortgage
Reverse Mortgage BLOG