Rate and Term Refinance
The borrower replaces a mortgage loan on the subject property with another mortgage loan for the purpose of getting a better interest rate and loan term.

Rate Lock
A commitment issued by a lender to a borrower guaranteeing a specified interest rate for a specified period of time.

Rate Reduction Option
A fixed-rate mortgage that includes a provision that gives the borrower an option to reduce the interest rate (without refinancing) at a later date. It is similar to a prearranged refinancing agreement, except that it does not require re-qualifying.

Real Estate Agent
A person licensed to negotiate and transact the sale of real estate on behalf of the property owner.

Real Estate Broker
A middleman or agent who buys and sells real estate for a company, firm, or individual on a commission basis. The broker does not have title to the property, but generally represents the owner.

Real Estate Investment Trust (REIT)
A corporation or trust that uses money from many investors to purchase and manage property for the purpose of making money. REITS are often publicly held.

Real-Estate Owned
A term used by lending institutions that refers to ownership of real property acquired for investment or as a result of foreclosure.

Real Estate Settlement Procedures Act (RESPA)
A consumer protection law that, among other things, requires advance disclosure of settlement costs to home buyers and sellers, prohibits certain types of referral and other fees, sets rules for escrow accounts, and requires notice to borrowers when servicing of a home loan is transferred.

Real Property
Another term for real estate. It includes land and things permanently attached to the land, such as trees, buildings, and stationary mobile homes. Anything that is not real property is termed personal property.

Realtor
Anyone who is licenses to both buy and sell real estate in an area and who is an active member in the local real estate board affiliated with the National Association of Realtors.

Recorder
The public official who keeps records of transactions that affect real property in the area.

Recording
The noting in a book of public record of the terms of a legal document affecting title to real property, such as a deed, a mortgage note, a satisfaction of mortgage, or an extension of mortgage.

Recording Fees
Fees that the lender charges for officially recording the signed mortgage documents to make them a public record.

Redemption Period
The time period in a foreclosure in which a borrower in default cannot be divested of legal title or evicted and can exercise the right to redeem the property by paying the debt in full.

Reduced Documentation
A method used to determine income when qualifying a borrower(s) for a loan. Borrower(s) provide their income, however no verification documentation is typically required.

Refinancing
Paying off one loan with the proceeds from another loan.

Rehabilitation Mortgage
A mortgage created to cover the costs of repairing, improving, and sometimes acquiring an existing property.

Remaining Balance
The amount of principal that has not yet been repaid.

Remaining Term
The original amortization term minus the number of payments that have been applied.

Rent with Option to Buy
A financing option that allows a potential home buyer to lease a property with the option to buy. Often constructed so the monthly rent payment covers the owner's first mortgage payment, plus an additional amount as a savings deposit to accumulate cash for a downpayment. A seller may agree to a lease-purchase option if the housing market is saturated and the seller is having difficulty selling the property.

Repayment Plan
An arrangement made to repay delinquent installments or advances. Lenders' formal repayment plans.

Replacement Cost Coverage
Homeowner's insurance that pays the cost to replace or repair the insured home or possessions, up to the policy's set maximum. Provides more protection than actual cash value coverage.

Replacement reserve fund
A 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.

Request for Notice of Default
A recorded document that obligates the holder of the first mortgage lien to notify subordinate lien holders in the event of default by the borrower.

Rescind
To avoid or cancel in such a way as to treat the contract or other object of the rescission as if it never existed.

Rescission
The act of cancellation or annulment of a transaction or contract by the operation of a law. Borrowers usually have the option to cancel certain credit transactions, including a refinance or home equity transaction, within three business days after consummation.

Restrictive Covenants
Private restrictions limiting the use of real property. Restrictive covenants are created by deed and may "run with the land," binding all subsequent purchasers of the land, or may be "personal" and binding only between the original seller and buyer.

Return on Investment (ROI)
A measure of a corporation's profitability; generally, the income an investment provides in a year.

Reverse Mortgage
An equity loan that allows a homeowner to receive tax-free payments on a monthly basis up to the credit limit, which is based on equity in the home.

Revolving Line of Credit
An agreement to lend a specific amount to a borrower, and to allow that amount to be borrowed again once it has been repaid. Most credit cards offer revolving credit.

Rider
A provision added to an insurance policy to add, amend, or alter the original coverage.

Right of First Refusal
A 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 Ingress or Egress
The right to enter or leave designated premises.

Right of Survivorship
In joint tenancy, the right of survivors to acquire the interest of a deceased joint tenant.

Risk
The degree of uncertainty regarding the rate of return on and/or the principal value of an investment.