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"We
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Mortgage
Glossary - Mortgage and Real Estate Terms Sorted Alphabetically:
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R – rate shopper, real property, real estate loans, reconciliation…more
RATE SHOPPER - someone, like all of us, who wants VALUE for their buck.
mortgage rates can be different from lender to lender, because of your
credit score (which changes daily - see credit score above), the lien position
(first or second mortgage,) proposed loan size, dollar amount of real estate
appraisal vs. the size of the new proposed loan (Loan-To-Value percentage),
property marketability, repair and condition, it's uniqueness to the
neighborhood, your income source(s) and their long term stability, your
historic income stream, your past and present credit records, it's depth,
variety and quality, your capacity to be able to repay the loan according to
the terms dictated by the lender, and most importantly the overall common sense
of your request and the "reason" for the loan (purchasing, re-finance [no
cash-out], equity advance, bill consolidation, home improvement etc ). For any
mortgage rate quote to even be remotely close to the final number, you
need to supply the lender/broker agent with a COMPLETE application and have a
three (3) credit bureau merged credit report run on you (and any other
applicants) for the lender/broker agent to be able to give you a thorough
answer about your eligibility to qualify for a particular rate. It's NOT one
rate fits all in residential real estate mortgage lending. You will probably
get a QUICK ANSWER, and it won't likely be the REAL ANSWER. QUICK IS GREAT FOR
HAMBURGERS, BUT NOT FOR CREDIT DECISIONS.
REAL PROPERTY - land and objects permanently attached to it, such as buildings
and fences. In some States, this term is synonymous with the term "real
estate."
REAL ESTATE SETTLEMENT PROCEDURES ACT (RESPA) - a federal statute and
regulation promulgated by HUD, governing residential real estate lending
practices and disclosures.
RECONCILIATION - the last step in the appraisal process, in which all data are
compared and the approaches to value considered to arrive at a final estimate
of value.
RECONVEYANCE - an instrument used to transfer title from a trustee to the
equitable owner of real estate; used when the performance of debt is satisfied
under the terms of a deed of trust.
RECORDING - the filing of documents or details of a legal document to make them
a matter of public record. Usually requires the witnessing and notarizing of
the document or instrument to be recorded.
RED LINING - arbitrary denial of a residential real estate loan application in
certain geographical areas, without considering the individual applicant’s
qualifications.
REFINANCING - the repayment of a debt from the proceeds of a new loan, using
the same property as security for the new loan. Refer to our
home mortgage refinancing section for more information.
REGULATION B - Federal Reserve regulation prohibiting discrimination against
consumer credit applicants, and establishing guidelines for collecting and
evaluating credit information.
REGULATION Z - Regulation written by the Federal Reserve Board to implement the
Federal Truth-In-Lending Act, requiring full written disclosures of the credit
portion of all consumer loans, including annual percentage rate (APR) etc.
REHABILITATION - restoration of a parcel of real property, or neighborhood to
bring it back to its full (highest & best) potential use.
REINSTATEMENT - the curing of all loan defaults by a borrower, to return it to
a current status.
RELEASE OF LIABILITY - an agreement by a lender to terminate personal
obligation of a mortgagor in connection with payment of a debt.
RELEASE OF LIEN - an instrument discharging secured property from a lien.
RENT CONTROL - legal limitations on rent increases.
REPLACEMENT COST - the money required to replace a building structure, with one
of equivalent value and function, but not necessarily identical in design or
materials.
REPRODUCTION COST - the cost required to reproduce a building using the same or
equivalent materials, design and construction methods, less an allowance for
depreciation. An element of the cost approach method of appraisal.
RESCISSION - the cancellation of a transaction or contract by law or by mutual
consent.
RESTRICTIVE COVENANT - a clause in a deed that denies the buyer full rights to
the property in question.
RIDER - an addendum or amendment to a written contract.
RULE OF 78TH'S - a mathematical method used by a lender, usually on installment
loans, for calculating an interest rebate on a loan paid off or refinanced
prior to its maturity date, also known as the United States Rule.
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A
- adjustable rate mortgage, adjustment interval, amortization, annual
percentage rate (APR)…more
B – balloon mortgage, bankruptcy, basis point, beneficiary…more
C - caps, cash flow, cash out (second mortgage), cash out refinance…more
D - debt consolidation, debt service, debt reduction plan, debt-to-income
ratio…more
E - earned and unearned income, earnest money, easement, economic life…more
F - Fair Credit Reporting Act, fair market value, Fannie Mae…more
G - good faith estimate, grace period, gradual payment mortgage (GPM),
grantee…more
H - home equity, home improvement loan, Home Mortgage Disclosure Act
(HMDA)…more
I - index, in file credit report, inflation, initial interest rate, ingress and
egress…more
L - lender buy-down mortgage, liability insurance, LIBOR, loan application…more
M - manufactured home, market value, maximum loan amount, mechanic’s lien…more
N - negative amortized (Neg/AM), Neg AM Loans, negative cash flow, net
worth…more
O - obsolescence, off-site improvements, on-site improvements, ordinary
income…more
P – par, partial payment, partnership, party wall, payment shock…more
Q – quality control, quit claim deed, quote…more
S – sales contract, satisfaction or mortgage, seasoned mortgage, second
mortgage…more
T – tax lien, tenancy in common, tenant, term, title, title insurance…more
U – underwriting, unencumbered property, uniform commercial code (UCC)…more
V – VA (Department of Veterans Affairs) Mortgage, vacancy rate, VA funding
fee…more
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