Laguna Beach Mortgage

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Mortgage Glossary

Use this glossary to look up definitions of mortgage terms.

The definitions given here explain how the terms are used in the field of real estate finance.
 

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Rate Adjustment Period
The minimum interval between adjustments of an ARM's interest rate.
Re-amortize
To recalculate level payments for a loan, either because the loan term has been changed or because the loan balance has increased (due to negative amortization).
Real Estate Investment Trust (RE
A real estate investment business with at least 100 investors, organized as a trust and receiving tax benefits in exchange for compliance with certain rules.
Realtor
A real estate broker or an associate holding active membership in a local real estate board affiliated with the National Association of Realtors.
Recission
The cancellation of a contract. With respect to mortgage refinancing, the law that gives the homeowner three days to cancel a contract in some cases once it is signed if the transaction uses equity in the home as security.
Recording Fees
Money paid to the lender for recording a home sale with the local authorities, thereby making it part of the public records.
Redlining
When a lender refuses to make loans secured by property in a certain neighborhood because of the racial or ethnic composition of the neighborhood, in violation of fair lending laws.
Refinance
Obtaining a new mortgage loan on a property already owned; often to replace existing loans on the property.
Regulation Z
The Federal Reserve Board's regulation that implements the Truth In Lending Act.
Reinstatement
When a defaulting borrower is allowed to prevent foreclosure by curing the default, the loan is reinstated and repayment resumes.
Rent
Compensation paid by a tenant to a landlord in exchange for the possession and use of the leased property.
Rent Credit Provision
A provision in a lease/option or lease/purchase contract that allows part of the rent paid by the tenant to be applied to the purchase of the property.
Rental Income
Input the gross rents received. The vacancy factor will be applied automatically.
Residual Income
The amount of income that an applicant for a VA loan has left over after taxes, recurring obligations, and the proposed housing expense have been deducted from his or her gross monthly income.
RESPA
The Real Estate Settlement Procedures Act, a federal law that requires lenders to disclose certain information about closing costs to loan applicants.
Reverse Equity Mortgage
An arrangement in which a homeowner mortgages the home to a lender in exchange for a monthly check from the lender.
Revolving
The term Revolving refers to o debt that generally has a fixed limit, but the outstanding balance and monthly payment may vary from month to month. The best examples of revolving debt are credit cards and gas cards.