radon
A radioactive gas found in some homes that in
sufficient concentrations can
cause health
problems.
rate-improvement mortgage
A fixed-rate mortgage that includes a provision
that gives the borrower a
one-time option to
reduce the interest rate (without refinancing)
during the early years of the mortgage term.
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. See lock-in.
real estate agent
A person licensed to negotiate and transact the
sale of real estate on behalf
of the property
owner.
Real Estate Settlement Procedures Act (RESPA)
A consumer protection law that requires lenders
to give borrowers advance
notice of closing
costs.
real property
Land and appurtenances, including anything of a
permanent nature such as
structures, trees,
minerals, and the interest, benefits, and
inherent rights thereof.
Realtor®
A real estate broker or an associate who holds
active membership in a local
real estate board
that is affiliated with the National Association
of Realtors®.
recission
The cancellation or annulment of a transaction
or contract by the operation of a
law or by
mutual consent. Borrowers usually have the
option to cancel a refinance
transaction within
three business days after it has closed.
recorder
The public official who keeps records of
transactions that affect real property in the
area. Sometimes known as a "Registrar of Deeds"
or "County Clerk."
recording
The noting in the registrar’s 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.
refinance transaction
The process of paying off one loan with the
proceeds from a new loan using
the same property
as security.
rehabilitation mortgage
A mortgage created to cover the costs of
repairing, improving, and sometimes
acquiring an
existing property.
remaining balance
The amount of principal that has not yet been
repaid. See principal balance.
remaining term
The original amortization term minus the number
of payments that have been applied.
rent loss insurance
Insurance that protects a landlord against loss
of rent or rental value due to fire
or other
casualty that renders the leased premises
unavailable for use and as a
result of which the
tenant is excused from paying rent.
rent with option to buy
See lease-purchase mortgage loan.
repayment plan
An arrangement made to repay delinquent
installments or advances.
Lenders' formal
repayment plans are called "relief provisions."
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.
revolving liability
A credit arrangement, such as a credit card,
that allows a customer to borrow against a
preapproved line of credit when purchasing goods
and services.
The borrower is billed for the
amount that is actually borrowed plus any
interest due.
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.
right of ingress or egress
The right to enter or leave designated premises.
right of survivorship
In joint tenancy, the right of survivors to
acquire the interest of a deceased joint tenant.
Rural Housing Service (RHS)
An agency within the Department of Agriculture,
which operates principally under the
Consolidated Farm and Rural Development Act of
1921 and Title V of the
Housing Act of 1949.
This agency provides financing to farmers and
other qualified
borrowers buying property in
rural areas who are unable to obtain loans
elsewhere.
Funds are borrowed from the U.S.
Treasury.
