Mortgage and Loan Glossary (R)
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radon
A naturally appearing radioactive gas found in some buildings, that
in sufficient concentrations may cause health problems.
RAM
Reverse annuity mortgage.
ranch house
Once described a low, one-story house typical of the western United
States. The term is now used to describe just about any one-story
home.
rate improvement mortgage
A fixed-rate mortgage (FRM) that includes a clause allowing the borrower
the option to reduce the interest rate one time (without refinancing)
during the first few years of the loan term.
rate of interest
Same as interest rate.
rate lock
A commitment issued by a lender or broker to a borrower, guaranteeing
a specified interest rate for a specified period of time. Also called
a lock-in, or rate commitment.
real estate
Land, and any buildings or trees on the land. Same as real property.
real estate agent
A person licensed to negotiate the purchase and sale of real estate
on behalf of buyers and sellers.
Real Estate Settlement Procedures Act (RESPA)
A consumer protection law that requires mortgage lenders and brokers
to give borrowers advance notice of closing costs in the form of
a Good Faith Estimate.
real property
Land and anything permanently affixed to the land; including structures,
trees, minerals, and the interest, benefits and rights thereof.
Realtor®
A real estate broker or associate who is an active member of a local
real estate board that is affiliated with the National Association
of Realtors.
rescission
The cancellation contract by the operation of a law or by mutual consent.
In some circumstances, borrowers have the right to cancel a transaction
within three business days after closing.
reconveyance
The releasing of a property owner from a deed of trust by the trustee
when the underlying loan has been paid off. The release is in the
form of a deed of reconveyance, which cancels the deed of trust.
recorder
The public official who keeps records of transactions that affect real
property in a specific geographic area (usually a county). Often
known as a County Recorder or County Clerk.
recording
The entering in a book of public record the details of a properly executed
legal instrument that affects title to real property, thereby making
it a part of the public record.
refinance
The process of paying off an existing loan (or loans) with the proceeds
from a new loan, using the same property as security.
rehabilitation mortgage
A loan granted to cover the costs of repairing or improving an existing
property. Sometimes also used to acquire property with the intent
to improve it.
remaining balance
The amount of principal owed on a loan that has not yet been repaid.
remaining term
The number of payments left to be made on a loan before it is fully
amortized (paid in full).
rent loss insurance
An insurance policy that protects a landlord against loss of rent or
value due to natural casualties that renders the premises unsuitable
for use, and therefore the tenant is excused from paying rent.
repayment plan
An agreement between a lender and a borrower, made to help the borrower
repay delinquent installments.
replacement reserve
An amount set aside from net operating income for replacement of short-lived
common property in cooperative housing projects such as condominiums.
RESPA
See Real Estate Settlement Procedures Act.
Retail Sales
Measures the total receipts of retail stores. Monthly percent changes
reflect the rate of changes of such sales. Changes in Retail Sales
are widely followed as an indicator of consumer spending. Frequency:
monthly. Source: Commerce Department.
reverse mortgage
See Home Equity Conversion Mortgage (HECM).
revolving credit
A credit agreement (typically a credit card) that allows a customer
to borrow against a preapproved credit line when purchasing goods
and services. The borrower is only billed for the amount that is
actually borrowed plus any interest due.
RHS
See Rural Housing Service.
right of first refusal
A contract provision that requires a property owner to give another
party the first opportunity to purchase or lease the property before
it is offered to others.
right of ingress or egress
The right to enter or leave specific property or premises..
right of survivorship
In joint tenancy, the right of surviving joint tenants to acquire the
interest of a deceased joint tenant.
right of way
The right, based on an easement, to pass over or through a property
owned by others.
Rural Housing Service (RHS)
An agency within the United States Department of Agriculture that provides
financing to farmers and other qualified borrowers buying property
in rural areas, who are unable to obtain loans elsewhere.