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Mortgage Glossary

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There are 10 terms in this glossary beginning with the letter R.
Rate commitment option, RCO
see Rate lock.

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. Also, Rate commitment option.

Real estate investment trust
securities or mutual funds that invest directly in real estate.

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

Real estate tax
see Property tax.

Refinance
process by which a borrower/homeowner may negotiate a lower interest rate on a mortgage, thereby lowering monthly payments.

Remaining balance
The current balance owed on a home loan.

Remaining term
The current amount of time remaining in the length of the loan.

Repayment schedule
mortgage payments laid out over the life of the loan. Some mortgage calculators let borrowers see their repayment schedule based on the amount of the home loan, the interest rate and monthly payments. See also Amortization.

Reverse mortgage
a type of mortgage designed for homeowners over 62 years of age; gives them access to home’s equity in cash payments, frees up money they may use for other important costs or to make needed home repairs.