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| | Radon - A radioactive gas found in some homes that in sufficient concentrations could cause health problems. |
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| | Rate - In lending, the amount of interest on the loan expressed as an interest rate or annual percentage rate (APR) of the principal. |
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| | Rate Cap Insurance - Rate cap insurance limits how much the interest rate can increase during the float period (usually no more than .5%). For example, if you get the insurance when the rate is 7.5%, you will be guaranteed that the rate will not go above 8%. This protects you from uncertainty in the market and rising rates. With the insurance you will be told that you can lock-in a rate, usually within 60 days of closing. You can also lock if the rate goes lower. |
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| | Rate Caps - (Also called "Interest Rate Caps"). A limit on the amount of which the interest rate charged to the borrower can be changed. |
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| | 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. |
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| | Rate/Point Options - These options are all the combinations of interest rate and points that are offered on a particular loan. Usually you will find that paying more points lowers interest rates. |
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| | Real Estate Broker - A middle man or agent who buys and sells real estate for a company, firm, or individual on a commission basis. The broker does not have title to the property, but generally represents the owner. |
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| | Real Estate Owned - (REO). A term frequently used by lending institution as applied to ownership of real property acquired for investment or as a result of foreclosure. |
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| | Real Estate Settlement Procedures Act (RESPA) - RESPA is a federal law that allows consumers to review information on known or estimated settlement costs once after application and once prior to or at settlement. The law requires lenders to furnish information after application only. |
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| | Real property - Land and appurtenances, including anything of a permanent nature such as structures, trees, minerals, and the interest, benefits, and inherent rights thereof. |
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| | Realtor - A real estate broker or an associate holding active membership in a local real estate board affiliated with the National Association of Realtors. |
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| | Recission - The cancellation or annulment of a transaction or contract by the operation of a law or by mutual consent. |
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| | Recorder - The public official who keeps records of transactions that affects real property in the area. |
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| | Recording - The noting in the registrars office of the details of a properly executed legal document, such as a deed, a mortgage note, a satisfaction of mortgage, or an extension of mortgage, thereby making it a part of the public record. |
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| | Recording Fees - Money paid to the lender for recording a home sale with the local authorities, thereby making it part of the public records. |
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| | Refinancing - The process of the same mortgagor paying off one loan with the proceeds from another loan. |
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| | Rehabilitation Mortgage - A mortgage created to cover the costs of repairing, improving, and sometimes acquiring an existing property. |
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| | Remaining Balance - The amount of principal that has not yet been repaid. |
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| | Remaining Term - The original amortization term minus the number of payments that have been applied. |
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| | Renegotiable Rate Mortgage (RRM) - A loan in which the interest rate is adjusted periodically. Sometimes referred to as Adjustable Rate Mortgage. |
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| | Repayment Plan - An arrangement made to repay delinquent installments or advances. Lenders' formal repayment plans are called "relief provisions." |
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| | Replacement Reserve Fund - A fund set aside for replacement of common property in a condominium, PUD, or cooperative project -- particularly that which has a short life expectancy, such as carpeting, furniture, etc. |
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| | Required Cash - Required cash is the total cash required for you to close the loan. This cash goes towards down payment, points, and other charges paid to the lender. It also goes towards up-front charges for things like mortgage insurance and other settlement charges associated with the transaction such as title insurance, taxes, etc. Your good faith estimate will show how much cash you need for closing. |
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| | Reserves - Verified liquid assets remaining after the borrower pays downpayment and closing costs. |
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| | Residential Mortgage Credit Report (RMCR) - Detailed account of the credit, employment, and residence history, as well as public-record information, concerning an individual. |
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| | RESPA - (Real Estate Settlement Procedures Act). A Federal law that requires lenders to provide home mortgage borrowers with information about known or estimated settlement costs. |
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| | Restrictive Covenants - Private restrictions limiting the use of real property. Restrictive covenants are created by deed and may "run with the land," binding all subsequent purchasers of the land, or may be "personal" and binding only between the original seller and buyer. The determination whether a covenant runs with the land or is personal is governed by the language of the covenant, the intent of the parties, and the law in the State where the land is situated. Restrictive covenants that run with the land are encumbrances and may affect the value and marketability of title. Restrictive covenants may limit the density of buildings per acre, regulate size, style or price range of buildings to be erected, or prevent particular businesses from operating or minority groups from owning or occupying homes in a given area. (This latter discriminatory covenant is unconstitutional and has been declared unenforceable by the U.S. Supreme Court.) |
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| | 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 security. |
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| | Revolving Debt - Debt that typically has a variable interest rate, an open-ended term, and payments that are based on a percentage of the balance. The debt has a set limit agreed upon by the lender and borrower. |
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| | Revolving liability - A credit arrangement, such as a credit card, that allows a customer to borrow against a pre-approved line of credit when purchasing goods and services. The borrower is billed for the amount that is actually borrowed plus any interest due. |
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| | 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. |
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| | Right of Ingress or Egress - The right to enter or leave designated premises. |
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| | Right of Survivorship - In joint tenancy, the right of survivors to acquire the interest of a deceased joint tenant. |
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| | Risk Grade - Assessment of a loan's relative risk with respect to its probability of default. Risk Grade Evaluation quantifies the risk by assigning a grade from RG1 (highest quality) to RG7 (lowest quality). |
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| | RTC - (Resolution Trust Corporation). Formed to resolve thrift failures over the next three years and dispose of their assets and liabilities. |
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