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.
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Recording
The entering in a book of public record the details of a properly executed legal instrument that affects title to real property, thereby making it a part of the public record.
Recording Fees
A fee charged by the local government to record mortgage documents into the public record so that any interested party is aware that a lender has an interest in the property. For our comparison purposes, a recording fee is considered to be a tax or other unavoidable fee.
Refinance
The process of paying off any existing mortgages on a home with a new mortgage loan.
Rehabilitation Mortgage
A loan granted to cover the costs of repairing or improving an existing property. Sometimes also used to acquire property with the intent to improve it.
Release Fee
The fee charged to release a lien to free real estate from a mortgage.
Remaining Balance
The amount of principal owed on a loan that has not yet been fully repaid.
Remaining Term
The number of payments left to be made on a loan before it is fully amortized (paid in full).
Rent Loss Insurance
An insurance policy that protects a landlord against loss of rent or value due to natural casualties that renders the premises unsuitable for use, and therefore excuses the tenant from paying rent.
Repayment Plan
An agreement between a lender and a borrower, made to help the borrower repay delinquent installments.
Replacement Reserve
An amount set aside from net operating income for replacement of short-lived common property in cooperative housing projects such as condominiums.
Rescission
The cancellation of a contract by the operation of a law or by mutual consent. In some circumstances, borrowers have the right to cancel a transaction within three business days after closing.
RESPA
See Real Estate Settlement Procedures Act.
Retail Sales
Measures the total receipts of retail stores. Monthly percent changes reflect the rate of changes of such sales. Changes in Retail Sales are widely followed as an indicator of consumer spending. Frequency: monthly. Source: Commerce Department.
Retirement Plan 401(k) & 403(b)
Employer-sponsored investment plans that allows individuals to set aside tax-deferred income for retirement or emergency purposes. 401(k) plans are provided by private corporations. 403(b) plans are provided by non-profit organizations.
Retirement Plan 401(k) & 403(b) Loans
Some administrators of 401(k) and 403(b) plans allow for loans against the funds you have accumulated in these plans.