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R
Rate
Lock -
A commitment issued by a lender to
a borrower or other mortgage originator
guaranteeing a specified interest
rate for a specified period of time
at a specific cost. top
of page
Real Estate -
A portion of the earth's surface extending
downward to the center to the earth
and upward into space, including all
things permanently attached thereto
by nature or man and all legal rights
therein.
top
of page
Real Estate Agent -
A person licensed to negotiate and
transact the sale of real estate.
top
of page
Real Estate Settlement Procedures
Act (RESPA) -
An act requiring the revelation of
all costs involved in a real estate
closing to all participants. top
of page
Real property -
See real estate. top
of page
Realtor® -
A real estate agent, broker, or associate
that holds an active membership in
a local real estate board that is
affiliated with the National Association
of Realtors. top
of page
Recast -
To redesign an existing loan balance
into a new loan for the same period
or longer, to reduce payments and
help a distressed borrower. top
of page
Reconciliation -
Determining the final estimate of
value by weighing the results of the
various approaches in an appraisal.
top
of page
Reconveyance Clause -
The clause in a trust deed that gives
the title back to the borrower when
the loan is paid in full. top
of page
Recording -
The formal filing of documents affecting
a property's title. top
of page
Regulation Z -
A truth-in-lending provision that
requires lenders to reveal the actual
costs of borrowing. top
of page
Refinancing -
The process of paying off one loan
with the proceeds from a new loan,
using the same property as security.
top
of page
Rent-Loss Insurance -
Insurance that protects a landlord
against loss of rent or rental value
due to fire or other casualty, resulting
in the tenant being excused from paying
rent. top
of page
Repayment Plan -
An agreement between a lender and
a delinquent borrower regarding mortgage
payments, in which the borrower agrees
to make additional payments to pay
down past due amounts while still
making scheduled payments. top
of page
Residual Qualifying -
Under a VA loan, using specified housing
expenses to qualify for a loan payment.
top
of page
Restrictions -
Rules imposed on the use of real estate
in an effort to preserve property
values. top
of page
Reverse Annuity Mortgage (RAM)
-
A system developed for an elderly
property owner in which regular monthly
payments can be received from a lender.
When the total reaches a pre-determined
amount, the owner begins repaying
the loan or sells the property. top
of page
Revolving Debt -
A credit arrangement that allows a
customer to borrow against a pre-approved
line of credit used to purchase goods
and services. The borrower is responsible
for the actual amount borrowed plus
any interest due. top
of page
Right-of-First Refusal -
A provision that states that a property
to be first offered to a specific
person before it can be offered for
sale or lease to other parties. top
of page
Rollover Loan -
A loan that /includes a call date
earlier than its normal amortization
period. top
of page
Rule of 78 -
Calculates proportionate amount of
interest due on a loan being paid
in full before its maturity. top
of page
S
Sale-Buyback -
A financing arrangement in which an
investor buys property from a developer
and immediately sells it back under
a long-term sales agreement, wherein
the investor retains legal title.
top
of page
Sale-Leaseback -
A financing arrangement whereby an
investor purchases real estate owned
and used by a business corporation,
then leases the property back to the
business. top
of page
Secondary Mortgage Market
-
A market where mortgage originators
may sell them, freeing up funds for
continued lending and distributes
mortgage funds nationally from money-rich
to money poor areas. top
of page
Second Mortgage -
A mortgage that has a lien position
subordinate to the first mortgage.
top
of page
Secured Loan -
A loan that is backed by collateral.
top
of page
Security -
Something given, deposited, or pledged
to make secure the fulfillment of
an obligation, usually the repayment
of a debt. top
of page
Seller Carry-Back -
An agreement in which the owner of
a property provides financing, often
in combination with an assumable mortgage.
top
of page
Senior Loan -
A real estate loan in first priority
position. top
of page
Servicer -
An organization that collects principal
and interest payments from borrowers
and manages borrowers' escrow accounts.
The servicer often services mortgages
that have been purchased by an investor
in the secondary mortgage market.
top
of page
Servicing -
The collection of mortgage payments
from borrowers and related responsibilities
of a loan servicer.
top
of page
Settlement Costs -
See Closing Costs. v Sinking Fund
-
Monies deposited in advance in anticipation
of satisfying a debt in the future.
top
of page
Stop Date -
Date on a term loan when the balloon
payment is due. top
of page
Subordinate Financing -
Any mortgage or other lien that has
a priority lower than that of the
first mortgage, or senior loan. See
second mortgage. top
of page
Survey -
A drawing or map the shows the precise
legal boundaries of a property, the
location of improvements, easements,
rights of way, encroachments, and
other physical features. top
of page
Sweat Equity -
Increase in property value due to
improvement by owners. top
of page
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