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"Your Education Center" |
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Rate Lock
A commitment issued by a lender to a borrower or other
mortgage originator guaranteeing a specified interest rate and
lender costs for a specified period of time.
Realtor®
A real estate broker or an associate holding active
membership in a local real estate board affiliated with the
National Association of Realtors.
Real Estate Agent
A person licensed to negotiate and transact the sale of real
estate on behalf of the property owner.
Real Estate Settlement Procedures Act (RESPA)
A consumer protection law that requires lenders to give
borrowers advance notice of closing costs.
Recission
The cancellation of a contract. With respect to mortgage
refinancing, the law that gives the homeowner three days to
cancel a contract in some cases once it is signed if the
transaction uses equity in the home as security.
Recording Fees
Money paid to the lender for recording a home sale with the
local authorities, thereby making it part of the public records.
Refinance
Obtaining a new mortgage loan on a property already owned.
Often to replace existing loans on the property.
Renegotiable Rate Mortgage
A loan in which the interest rate is adjusted periodically.
See adjustable rate mortgage.
RESPA
Short for the Real Estate Settlement Procedures Act. RESPA is
a federal law that allows consumers to review information on
known or estimated settlement cost once after application and
once prior to or at a settlement. The law requires lenders to
furnish the information after application only.
Reverse Annuity Mortgage (RAM)
A form of mortgage in which the lender makes periodic
payments to the borrower using the borrower's equity in the home
as collateral for and repayment of the loan.
Revolving Liability
A credit arrangement, such as a credit card, that allows a
customer to borrow against a preapproved line of credit when
purchasing goods and services.
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