Veterans Mortgage of America is a VA Approved Lender | NMLS ID 3117

Reverse Mortgage Glossary

Reverse Mortgage: A type of home loan that allows homeowners age 62 and older to convert part of their home equity into cash without having to sell the home or make monthly mortgage payments.

Home Equity Conversion Mortgage (HECM): The most common type of reverse mortgage, insured by the Federal Housing Administration (FHA).

Equity: The difference between the appraised value of a home and the amount of money owed on the mortgage.

Principal Limit: The maximum amount of money that can be borrowed under a reverse mortgage.

Interest Rate: The percentage of the loan amount that is charged by the lender as interest.

Loan Origination Fee: A fee charged by the lender to cover the cost of processing the loan.

Closing Costs: Fees associated with closing the reverse mortgage, such as appraisal fees, title insurance, and attorney fees.

Mortgage Insurance Premium (MIP): Insurance required on HECM loans to protect the lender in case the borrower defaults on the loan.

Line of Credit: A feature of some reverse mortgages that allows borrowers to access a certain amount of funds whenever needed.

Tenure Payment: Monthly payments made to the borrower for as long as they live in the home, regardless of how long that may be.

Term Payment: Monthly payments made to the borrower for a fixed period of time.

Fixed Interest Rate: An interest rate that remains constant throughout the life of the loan.

Adjustable Interest Rate: An interest rate that can change periodically based on market conditions.

Non-Recourse Loan: A type of loan where the borrower is not personally liable for repayment, and the lender can only seek repayment from the home itself.  Meaning the borrower or their heirs never owe more than the value of the home.

Reverse Mortgage Servicer: The company responsible for managing the reverse mortgage after it is closed, including processing payments and managing escrow accounts.

Foreclosure: The legal process by which a lender can take possession of a home if the borrower fails to meet their repayment obligations.

Independent Counseling: Required for all reverse mortgage applicants, this counseling session helps borrowers understand the terms and costs associated with a reverse mortgage.

Reverse Mortgage Enhancement: Changes to the reverse mortgage program aimed at making the product more borrower-friendly and sustainable in the long term.

Jimmy O.
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"USAVA Lending did a fine job. They explained everything. They treated me just fine and they were real friendly. If I had a question they got right back in touch with me at the time they said they would. They got what I wanted. I had no complaints. They corrected things that needed to be done. I was alright with the interest rate being the same. I would recommend them."
Elizabeth C.
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We received VA Refinance from USAVA Lending. All expectations were meet we had excellent communications from the "Executive Assistant. They provided prompt and thorough services. I would recommend USAVA Lending. It was easy with no hassles."
Will M.
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"The service was real good and they were pleasant. They were real polite and nice. The loan closed early and it did not take too long. We had no problems with them. The loan originator was excellent. He set us up and he was fantastic! He called back to see if everything went smooth and to find out if we had any questions. We did not have any questions because they answered them. I would definitely recommend them."
Barbara S.
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"They did a great job! I was very satisfied with their helpfulness and they went as far as taking care of the little details. During the time I was refinancing, my husband was in the hospital and was in ICU. The Senior Loan Processor was very helpful and was there for me when I couldn't be quite there myself. We got a reduced interest rate and reduced payment. I got a lot of great customer service from their team. I was looking for a place online and just happened to find their website and have been trying to refinance for 2-3 years..."
Charles M.
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"Thank all of you that worked to get this mortgage through. The Senior Loan Processor was quite a tireless person working with us. She was good to us and caring. She was also reassuring. We were very nervous and she calmed our fears.We would recommend USAVA Lending very highly. They were friendly, courteous, informative. They explained everything. USAVA Lending was the first loan company we have used in many years and it was worth our while. They facilitated the process, so we had nothing was held up."
Levi M.
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"I have used USA Home Loans a couple of times now and I keep going back because the employee I work with is great. I am always treated well and the employee is very personable. I have recommended them and if asked I would keep recommending them they are efficient."
Anthony Z.
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"Everyone at USAVA Lending did a splendid job in refinancing my home..They were very courteous,imformative, and answered all my questions. They were all very professional in handling my re finance, and it was finished promptly.I recommend your Lending Instition very highly.Thank you all for doing such a great job!"
Joe L.
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"Compared to Chase and other places that I worked with USAVA Lending were excellent. It was impressive because they are in Arizona and I am 1000 miles away in the bay area in California and I got better service from them than I would get from Chase who is literally around the corner. When the loan originator contacted me I was kind of leery that something like this would go through, but he did a remarkable job in terms of managing the loan application and process..."