Mortgage Glossary part 4 |
RATE LOCK: A guarantee from a lender of a specific interest rate for a period of time. REAL ESTATE AGENT A licensed professional who facilitates the buying and selling of real estate. REAL ESTATE SETTLEMENT PROCEDURES ACT (RESPA): A federal law requiring lenders to give full disclosure of closing costs to borrowers. REFINANCE TRANSACTION: A new loan to pay off an existing loan. Typically to gain a lower interest rate or convert equity into cash.REMAINING TERM: The amount of time remaining on the original amortization schedule. REVOLVING DEBT: A type of credit that allows the borrower/customer to make charges against a predetermined line of credit. The customer then pays monthly installments on the amount borrowed, plus interest.SALES COMPARISON APPROACH: An appraisal practice which estimates the value of a property by comparing it to comparable properties which have sold recently. SECOND MORTGAGE: A loan secured by the equity in a home, when a primary mortgage already exists. SECONDARY MORTGAGE MARKET: An economic marketplace where mortgage bankers buy and sell existing mortgages.SECURED LOAN: A loan that is backed by collateral. In the case of a mortgage loan, the collateral is the house. SURVEY: A specific map of a piece of property which includes the legal boundaries and any improvements or features of the land. Surveys also depict any rights-of-way, encroachments or easements. SWEAT EQUITY: The method whereby a home owner develops equity in a property, either during the purchase or throughout its life, by personally constructing improvements rather than paying to have them built. |
