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- R |
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| Rate Improvement Mortgage |
A fixed-rate mortgage that allows the borrower to reduce the interest rate of their mortgage without refinancing. You will only be allowed to adjust your rate to a lower interest rate one time during the term of your loan and you will need to do this within the period specified within the terms of your mortgage agreement (generally during the early years of your mortgage). |
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| Rate Lock |
When a lender commits to issuing a specific interest rate to a borrower and guarantees to hold it for a specified period of time. Rate locks are only temporary, and to take advantage of the locked-in rate, you will need to close your loan prior to the expiration of the lock-in period (normally 30-60 days). |
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| Real Estate Agent |
A licensed professional who negotiates real estate transactions. Unless retained as a buyer's agent, real estate agents will almost always represent the seller, leaving the buyer without representation. |
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| Real Estate Settlement Procedures Act (Respa) |
A consumer protection law implemented in 1974 by the federal government that covers one to four-family properties. The law demands that lenders provide you with advance notice of all of your closing costs prior to closing and establishes guidelines for escrow account balances. The law also prohibits "kickbacks" to third parties for referring business associated with the loan. |
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| Realtor |
A real estate agent or broker that is affiliated with the National Association of Realtors or with the National Association of Real Estate Boards. Realtor is a trademarked term and not all real estate agents can refer to themselves as Realtors. All Realtors must abide by the Realtors Code of Ethics. |
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| Rebate Point |
If you're willing to pay a higher rate of interest on your mortgage, you can get a credit, referred to as a rebate point, to put towards your closing costs. How much your interest increases will depend on how many rebate points you receive. Each rebate point will equal one percent of your loan amount and will make your interest rate rise by approximately one-quarter of a percentage point. The rebates received cannot be received in cash and must be applied towards the non-recurring closing costs of your loan, such as appraisals and title insurance. |
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| Recording |
When County registrars document legal papers to make them a part of public record. When you purchase a home or vacant land, satisfy your mortgage or execute a number of other legal documents, the document needs to be sent to the registrar's office for recording. These documents are recorded in order to protect the interests of the parties involved in the transaction. |
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| Recording Fees |
The costs associated with having a document recorded by a registrar's office in order to make it a part of public record. Different counties have different recording fees for different document types. |
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| Refinancing |
Repaying one debt with the funds from a new loan. Many homeowners decide to refinance when interest rates drop so that they can save money and lower their monthly payments. There are numerous refinancing programs available to homeowners, including cash-out refinance options where you can refinance your home and get extra cash for various purposes. |
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| Regulation Z |
A federally mandated law that requires lenders to provide borrowers with the Annual Percentage Rate (APR) of a loan. The APR calculates all fees and closing costs associated with a loan, but not all lenders use the same model when determining their APRs, so precise analysis must be done when comparing two rates. |
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| Rehabilitation Mortgage |
A loan that covers the costs of purchasing and repairing of a property that is in need of improvements. |
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| Rescission |
The cancellation or termination of a contract is referred to as rescission. Contracts may be rescinded by law or by the consent of the parties involved. If you're involved with certain types of loan contracts, you normally have three business days from the signing of the contract to change your mind and cancel the contract without incurring any penalties. |
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| Residential Loan Application Form (1003) |
When you purchase a home and apply for a mortgage, a residential loan application, also known as a form (1003) will need to be filled out. This four-page form will ask you questions about your employment history, your current income, your residence history, your savings and asset information and will ask questions about the home that you are purchasing. |
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| RESPA |
This is the acronym that stands for the Real Estate Settlement Procedures Act. This federal law is a consumer protection law that was implemented in 1974. The law covers one to four-family properties and demands that lenders provide you with advance notice of all of your closing costs prior to closing. The law also establishes guidelines for escrow account balances and prohibits "kickbacks" to parties for referring business associated with the loan. |
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