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home :: Mortgage Terms
Glossary R
Mortgage Terms Glossary
R
Radon: a radioactive gas found in some
homes that, if occurring in strong enough concentrations, can cause
health problems.
Rate cap: see cap.
Real estate agent: an individual who is
licensed to negotiate and arrange real estate sales; works for a
real estate broker.
Realtor:
a real estate agent or broker who is a member of the National
Association of Realtors, and its local and state associations.
Refinancing: paying off one loan by
obtaining another; refinancing is generally done to secure better
loan terms (like a lower interest rate).
Rehabilitation mortgage: a mortgage
that covers the costs of rehabilitating (repairing or Improving) a
property; some rehabilitation mortgages - like the FHA's 203(k) -
allow a borrower to roll the costs of rehabilitation and home
purchase into one mortgage loan.
RESPA: Real Estate Settlement
Procedures Act; a law protecting consumers from abuses during the
residential real estate purchase and loan process by requiring
lenders to disclose all settlement costs, practices, and
relationships.
Reverse annuity mortgage: a type of
mortgage loan in which the lender makes periodic payments to the
borrower. The borrower's equity in the home is used as security for
the loan.
RHCDS: Rural Housing and Community
Service.
Right of first refusal: the right to
purchase a property under conditions and terms made by another buyer
and accepted by the seller.
Right of rescission: the right to back
out of a transaction, given automatically by law to the borrower in
a real estate purchase transaction. When a borrower's principal
dwelling is going to secure a loan, the borrower has three business
days following signing of the loan documents to rescind or cancel
the transaction. Any and all money paid by the borrower must be
refunded upon rescission. The right to rescind does not apply to
loans to purchase real estate or to refinance a loan under the same
terms and conditions where no additional funds will be added to the
existing loan.
Rollover: the process by which a
construction loan becomes a mortgage. At the end of the construction
loan period, the borrower's file is delivered to Bank One Mortgage
Loan Servicing Dept. Prior to delivery, CLD contacts the borrower
and obtains funds for the tax and insurance escrows, a final title
policy and homeowner's policy. This process is called a rollover.
Rural Housing and Community Development
Service: A federal agency that administers mortgage loans for
buyers in rural areas.
Related
Topics:
Residential Mortgage Loans
Refinancing a home
Rent to Own Home
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