- Rate Lock
A commitment issued by a lender to a borrower
guaranteeing a specified interest rate for a specified period of time. See
lock-in.
- Rate Reduction Option
A fixed-rate mortgage that includes a provision that
gives the borrower an option to reduce the interest rate (without refinancing)
at a later date. It is similar to a prearranged refinancing agreement, except
that it does not require re-qualifying.
- Real Estate
- Land and anything permanently affixed to it, including buildings, fences and other items attached to the structure.
- Real Estate Agent
A person who is normally licensed by the state and
who, for a commission or a fee, assists in negotiating a real estate
transaction.
- Real Estate Broker
A real
estate agent who is licensed by the state to represent a buyer or seller in a
real estate transaction in exchange for a commission. Most brokers also have
agents working for them, and are entitled to a portion of their commissions.
- Real Estate Settlement Procedures Act (RESPA)
A consumer protection law that, among other things,
requires advance disclosure of settlement costs to home buyers and sellers,
prohibits certain types of referral and other fees, sets rules for escrow
accounts, and requires notice to borrowers when servicing of a home loan is
transferred.
- Real Property
Land and appurtenances, including anything of a
permanent nature such as structures, trees, minerals, and the interest,
benefits, and inherent rights thereof.
- RealtorŪ
A real estate broker or an associate who holds active
membership in a local real estate board that is affiliated with the National
Association of Realtors.
- Recorder
The public official who keeps records of transactions
that affect real property in the area. Sometimes known as a "Registrar of
Deeds" or "County
Clerk."
- Recording
The noting in a book of public record of the terms of
a legal document affecting title to real property, such as a deed, a mortgage
note, a satisfaction of mortgage, or an extension of mortgage.
- Reduced Documentation
A method used to determine income when qualifying a
borrower(s) for a loan. Borrower(s) provide their income, however no
verification documentation is typically required.
- Refinance
The process of paying off one loan with the proceeds
from a new loan, typically using the same property as security for the new
loan.
- Refinancing
The process of paying
off one loan with the proceeds from a new loan, typically using the same
property as security for the new loan.
- Rehabilitation Mortgage
A mortgage created to cover the costs of repairing,
improving, and sometimes acquiring an existing property.
- Remaining Balance
The amount of principal that has not yet been repaid.
See principal balance.
- Remaining Term
The original amortization term minus the number of
payments that have been applied.
- Repayment plan
An arrangement made to repay delinquent installments
or advances. Lenders' formal repayment plans are often called "relief
provisions."
- Request for Notice of Default
A recorded document that obligates the holder of the
first mortgage lien to notify subordinate lien holders in the event of default
by the borrower.
- Rescission
The act of cancellation or annulment of a transaction
or contract by the operation of a law. Borrowers usually have the option to
cancel certain credit transactions, including a refinance or home equity
transaction, within three business days after consummation (when the consumer
becomes contractually obligated by, for example, signing the loan documents).
- Reverse Mortgage
- A special type of loan available to equity-rich, older owners. Repayment is not necessary until the borrower sells the property or moves into a retirement community.
- Revolving Liability
A credit arrangement, such as a credit card or HELOC,
that allows a customer to borrow against a predetermined line of credit when
purchasing goods and services. The borrower makes payments on the amount that
is actually borrowed plus any interest due.
- Right of First Refusal
A provision in an agreement that
requires the owner of a property to give another party the first opportunity to
purchase or lease the property before he or she offers it for sale or lease to
others.
- Right of Ingress or Egress
The right to enter or leave designated premises.
- Right of Survivorship
In joint tenancy, the right of
survivors to acquire the interest of a deceased joint tenant.
- Rural Housing Service (RHS)
An agency within the Department of Agriculture. This
agency provides financing to farmers and other qualified borrowers buying
property in rural areas who are unable to obtain loans elsewhere. Funds are
borrowed from the U.S. Treasury.
Loan Glossary 
