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

Reverse Mortgage
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 mortgages are for people who are retiring or planning to retire. Funds from a reverse mortgage can be used for any purpose. Pre-existing mortgages 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.