Glossary of Reverse Mortgage Terms
Leftover equity - the sale price of the home minus the total amount owed on it and the cost of selling it; the amount the homeowner or heirs get when the house is sold.
Loan advances - payments made to a borrower, or to another party on behalf of a borrower.
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.
