Mortgage and Real Estate Terms Sorted Alphabetically:
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/banker 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/banker 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.
Mortgage Glossary - Mortgage and Real Estate Terms Sorted Alphabetically:
Mortgage
Glossary
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 liens - 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
R
- rate shopper, real property, real estate loans,
reconciliation - 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)ï -more
V
- VA (Department of Veterans Affairs) Mortgage, vacancy
rate, VA funding fee - more
