A reverse mortgage is a loan that allows homeowners aged 62 or older to borrow against the equity in their home without having to make monthly payments. The loan is repaid when the homeowner sells the home or passes away.

The maximum LTV ratio for a conventional mortgage is typically 80%, meaning that the borrower must make a down payment of at least 20% of the purchase price.

A jumbo loan is a mortgage loan that exceeds the conforming loan limit set by Fannie Mae and Freddie Mac. Jumbo loans are not government-backed and typically have higher interest rates than conventional or government-backed loans.

A mortgage escrow account is a separate account that is used to hold funds for property taxes and insurance. The lender collects these funds from the borrower each month and pays the taxes and insurance bills when they are due.

The main difference between a fixed-rate mortgage and an ARM is that the interest rate on a fixed-rate mortgage remains the same for the life of the loan, while the interest rate on an ARM can change over time.

A balloon mortgage is a mortgage loan that has a large final payment, typically due at the end of the loan term. The monthly payments on a balloon mortgage are typically lower than the payments on a traditional mortgage, but the final payment can be a significant financial burden.

A residential mortgage is a loan that is used to purchase or refinance a residential property. Real estate investment loans, on the other hand, are used to purchase or refinance properties that are intended for investment purposes.

A mortgage pre-approval is a conditional approval for a mortgage loan that is based on the borrower's financial information. A pre-approval gives the borrower an idea of how much they can borrow and can help them make a stronger offer on a property.

A HELOC is a revolving line of credit that allows homeowners to borrow against the equity in their home. The borrower can use the funds from a HELOC for any purpose, such as home improvements, education, or debt consolidation.

A mortgage payoff statement shows the remaining balance on a mortgage loan, as well as the amount of interest that is owed. The statement also includes the date when the loan will be paid off if the borrower continues to make the regular monthly payments.

A mortgage recast is a change in the monthly payment of a mortgage, typically done to lower the payment amount. A recast may be done if the borrower has made extra payments on the loan or if the interest rate has decreased.

A mortgage assumption is the transfer of a mortgage loan from one borrower to another. The new borrower assumes the responsibility for making the monthly payments on the loan.

A mortgage subordination is the placement of a new mortgage loan ahead of an existing mortgage loan. This means that the new loan will have priority over the existing loan in terms of repayment.

A mortgage defeasance is the prepayment of a mortgage loan in full. This is typically done when the borrower sells the property or refinances the loan.

A mortgage release is the removal of a mortgage loan from a property. This is typically done when the loan is paid off in full or when the property is sold.