Fairway Asset Corporation - MORTGAGE DICTIONARY

Morgage Dictionary

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There are currently 8 names in this directory beginning with the letter R.
Rate lock
A 'short-term' agreement by a lender to 'hold' a certain interest rate on a home loan while the buyer negotiates a sale transaction.

Real Estate Settlement Procedures Act (RESPA)
An act passed in 1974 which reeled in hidden costs, fees and kickbacks that had become widespread among real estate entities. Following this act, all fees and costs must be disclosed to both buyers and sellers.

The termination or cancellation of a contract. With respect to mortgage refinancing, this is a law that gives the homeowner three days to cancel a contract.

Recording Fees
Money which is paid to the lender for recording a home sale with local authorities. Thereby making it part of public records.

When a borrower replaces an existing loan(or loans) with a new loan on the same property. There are mainly two type of refinance: rate and term refinance and cash-out refinance.

Repayment Schedule
See 'Amortization.'

Resetting the clock
A term used after refinancing a loan when the loan term of the mortgage is extended.

Reverse Mortgage
A loan specifically for individuals 62 years and older, which gives the homeowner access to the home's equity in cash payments. Though it may be seen as a good source of income, it is still structured as a loan, therefore they are not typically considered as income.