Basic Terms Used for Real Estate & Mortgages
Real estate & loans may involve other terms. In the event you don't understand some of these terms, ask for help from your real estate agent, lender or attorney.
Realtor
A property salesmen who follows the guidelines set by the National Association of Realtors.
Real Estate Broker
An individual, usually owning a company, who is licensed to act for a property seller or buyer.
Real Estate Settlement Procedure Act (RESPA)
Treatment, stated by law, given to people who file for loans and mortgages on 1-4 units, e.g. a lender is required by law to give a good faith estimate of closing costs within 5 days of someone filing for a loan.
Refinancing
The ability to repay an established loan with the monies from a new loan on the same property.
Re conveyance
When a mortgage is fully paid for the property in full the lender will convey the property back to the owner.
Recording
Processing information into a database that would affect the title of property. Lenders require that a deed of trust or a mortgage be recorded as evidence of debt.
Rescission
The ending of contract. When refinancing a mortgage on property, requires the borrower/owner to cancel the contract within 3 days if they decide not to proceed with the refinancing.
Regulation Z (Reg Z)
Regulation set by the federal government requiring creditors to give the full terms and agreements of a loan and the APR (annual percentage rate) to a borrower.
Reverse Mortgage
A mortgage used by the elderly in which they receive an income (payments) as long as they are alive. The principal of the loan increases as these payments are made, hence the term reverse.
Rollover Loan
A loan that is long term (e.g. 30 years) were the interest rate is kept lower for a shorter number of years (e.g. 5). This type of loan can either be rolled over or extended based on the terms of the loan at the end of the shorter period.
