Q
qualifying ratios
Calculations that are used in determining whether a borrower can qualify for a mortgage. They consist
of two separate calculations: a housing expense as a percent of income ratio and total debt obligations
as a percent of income ratio.
quitclaim deed
A deed that transfers without warranty whatever interest or title a grantor may have at the time the
conveyance is made.
R
radon
A radioactive gas found in some homes that in sufficient concentrations can cause health problems.
rate-improvement mortgage
A fixed-rate mortgage that includes a provision that gives the borrower a one-time option to reduce the
interest rate (without refinancing) during the early years of the mortgage term.
rate lock
A commitment issued by a lender to a borrower or other mortgage originator guaranteeing a specified
interest rate for a specified period of time. See lock-in.
real estate agent
A person licensed to negotiate and transact the sale of real estate on behalf of the property owner.
Real Estate Settlement Procedures Act (RESPA)
A consumer protection law that requires lenders to give borrowers advance notice of closing costs.
real property
Land and appurtenances, including anything of a permanent nature such as structures, trees,
minerals and the interest, benefits and inherent rights thereof.
REALTOR®
A real estate broker or an associate who holds active membership in a local real estate board that is
affiliated with the NATIONAL ASSOCIATION of REALTORS®.
recission
The cancellation or annulment of a transaction or contract by the operation of a law or by mutual
consent. Borrowers usually have the option to cancel a refinance transaction within three business
days after it has closed.
recorder
The public official who keeps records of transactions that affect real property in the area. Sometimes
known as a "Registrar of Deeds" or "County Clerk."
recording
The noting in the registrar’s office of the details of a properly executed legal document, such as a
deed, a mortgage note, a satisfaction of mortgage or an extension of mortgage, thereby making it a
part of the public record.
refinance transaction
The process of paying off one loan with the proceeds from a new loan using the same property as
security.
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. See principal balance.
remaining term
The original amortization term minus the number of payments that have been applied.
rent loss insurance
Insurance that protects a landlord against loss of rent or rental value due to fire or other casualty that
renders the leased premises unavailable for use and as a result of which the tenant is excused from
paying rent.
rent with option to buy
See lease-purchase mortgage loan.
repayment plan
An arrangement made to repay delinquent installments or advances. Lenders' formal repayment plans
are called "relief provisions."
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.
revolving liability
A credit arrangement, such as a credit card, that allows a customer to borrow against a preapproved
line of credit when purchasing goods and services. The borrower is billed for the amount that is
actually borrowed plus any interest due.
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.
Rural Housing Service (RHS)
An agency within the Department of Agriculture, which operates principally under the Consolidated
Farm and Rural Development Act of 1921 and Title V of the Housing Act of 1949. This agency
provides financing to farmers and other qualified borrowers buying property in rural areas who are
unable to obtain loans elsewhere. Funds are borrowed from the U.S. Treasury.
qualifying ratios
Calculations that are used in determining whether a borrower can qualify for a mortgage. They consist
of two separate calculations: a housing expense as a percent of income ratio and total debt obligations
as a percent of income ratio.
quitclaim deed
A deed that transfers without warranty whatever interest or title a grantor may have at the time the
conveyance is made.
R
radon
A radioactive gas found in some homes that in sufficient concentrations can cause health problems.
rate-improvement mortgage
A fixed-rate mortgage that includes a provision that gives the borrower a one-time option to reduce the
interest rate (without refinancing) during the early years of the mortgage term.
rate lock
A commitment issued by a lender to a borrower or other mortgage originator guaranteeing a specified
interest rate for a specified period of time. See lock-in.
real estate agent
A person licensed to negotiate and transact the sale of real estate on behalf of the property owner.
Real Estate Settlement Procedures Act (RESPA)
A consumer protection law that requires lenders to give borrowers advance notice of closing costs.
real property
Land and appurtenances, including anything of a permanent nature such as structures, trees,
minerals and the interest, benefits and inherent rights thereof.
REALTOR®
A real estate broker or an associate who holds active membership in a local real estate board that is
affiliated with the NATIONAL ASSOCIATION of REALTORS®.
recission
The cancellation or annulment of a transaction or contract by the operation of a law or by mutual
consent. Borrowers usually have the option to cancel a refinance transaction within three business
days after it has closed.
recorder
The public official who keeps records of transactions that affect real property in the area. Sometimes
known as a "Registrar of Deeds" or "County Clerk."
recording
The noting in the registrar’s office of the details of a properly executed legal document, such as a
deed, a mortgage note, a satisfaction of mortgage or an extension of mortgage, thereby making it a
part of the public record.
refinance transaction
The process of paying off one loan with the proceeds from a new loan using the same property as
security.
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. See principal balance.
remaining term
The original amortization term minus the number of payments that have been applied.
rent loss insurance
Insurance that protects a landlord against loss of rent or rental value due to fire or other casualty that
renders the leased premises unavailable for use and as a result of which the tenant is excused from
paying rent.
rent with option to buy
See lease-purchase mortgage loan.
repayment plan
An arrangement made to repay delinquent installments or advances. Lenders' formal repayment plans
are called "relief provisions."
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.
revolving liability
A credit arrangement, such as a credit card, that allows a customer to borrow against a preapproved
line of credit when purchasing goods and services. The borrower is billed for the amount that is
actually borrowed plus any interest due.
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.
Rural Housing Service (RHS)
An agency within the Department of Agriculture, which operates principally under the Consolidated
Farm and Rural Development Act of 1921 and Title V of the Housing Act of 1949. This agency
provides financing to farmers and other qualified borrowers buying property in rural areas who are
unable to obtain loans elsewhere. Funds are borrowed from the U.S. Treasury.
| Real Estate and Loan Glossary of Terms |
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| Capital Real Estate and Loans Nannette Truong Kazan, Broker-Real Estate Specialist |
| Cell: 714 478-4940 |
| Fax: 949 266-8911 |
| Office: 949 679-3400 |
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