People often disregard reverse mortgages as being too complex. However, I argue they are simply unfamiliar. When explained properly, borrowers can easily understand the concept of a reverse mortgage. However, the loan terms and language are unfamiliar to most existing homeowners.

Therefore, when lenders and loan originators decide to offer reverse mortgage products, the first step is to learn the terminology that makes those loan products different.

Do you speak reverse?

Let’s explore just a few of the key terms not commonly found with traditional mortgages:

Principal Limit Factors (PLF)

Traditional loan originators use the term “Loan to Value” or LTV to describe details ⇒

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