Mortgage Glossary
There are a lot of unfamiliar terms that get tossed around during the mortgage process. But don't worry, we've put together this glossary to help you get a better grasp of any terms that may be less than clear.
R
Radon
A naturally appearing radioactive gas found in some buildings, that, in sufficient concentrations, may cause health problems.
RAM
Reverse annuity mortgage.
Ranch House
Once described a low, one-story house typical of the western United States. The term is now used to describe just about any one-story home.
Rate
The annual rate of interest for a loan. Also called the interest rate.
Rate Change Cap
The maximum amount that an interest rate can change, either at an adjustment period or over the entire life of the loan. Commonly associated with an adjustable rate mortgage (ARM).
Rate Improvement Mortgage
A fixed-rate mortgage (FRM) that includes a clause allowing the borrower the option to reduce the interest rate one time (without refinancing) during the first few years of the loan term.
Rate Lock
An agreement by a lender to guarantee the interest rate offered for a mortgage provided that the loan closes within the specified period of time.
Rate of Interest
Same as interest rate.
Real Estate Agent
A person licensed to negotiate the purchase and sale of real estate on behalf of buyers and sellers.
Real Estate Settlement Procedures Act (RESPA)
A consumer protection law that requires mortgage lenders and brokers to give borrowers advance notice of closing costs in the form of a Good Faith Estimate.
Real Property
Land and anything permanently affixed to the land, including structures, trees, minerals, and the interest, benefits and rights thereof.
Realtor®
A real estate broker or associate who is an active member of a local real estate board that is affiliated with the National Association of Realtors.
Reconveyance Fee
This fee is charged by title companies or attorneys in some states and covers the cost of removing your current lender's lien from your property title when you refinance. For our comparison purposes, a reconveyance fee is considered to be a third party fee and may be included in the title insurance fee by some lenders.
Recordation Exam
A fee charged by the title company in some states to review documents, to assure they meet the state standards prior to being recorded. For our comparison purposes, a recordation exam is considered to be a third party fee and may be included in the title insurance fee by some lenders.
Recorder
The public official who keeps records of transactions that affect real property in a specific geographic area (usually a county). Often known as a County Recorder or County Clerk.