Glossary

A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

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RadonA radioactive gas found in some homes that in sufficient concentrations can cause health problems. 
Rate-Improvement MortgageA 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 LockA 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 Settlement Procedures Act (RESPA)A consumer protection law that requires lenders to give borrowers advance notice of closing costs. 
Real PropertyLand 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®
RecissionThe 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. 
RecorderThe public official who keeps records of transactions that affect real property in the area. Sometimes known as a “Registrar of Deeds” or “County Clerk.” 
RecordingThe 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 TransactionThe process of paying off one loan with the proceeds from a new loan using the same property as security. 
Rehabilitation MortgageA mortgage created to cover the costs of repairing, improving, and sometimes acquiring an existing property. 
Remaining MortgageThe amount of principal that has not yet been repaid. See principal balance. 
Remaining TermThe original amortization term minus the number of payments that have been applied.
Rent Loss InsuranceInsurance 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 BuySee lease-purchase mortgage loan.
Repayment PlanAn arrangement made to repay delinquent installments or advances. Lenders’ formal repayment plans are called “relief provisions.”
Replacement Reserve FundA 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 LiabilityA 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 RefusalA 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 EgressThe right to leave designated premises.
Right of IngressThe right to enter designated premises.
Right of SurvivorshipIn joint tenancy, the right of survivors to acquire the interest of a deceased joint tenant. 
Rural Housing Service (RHA)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.