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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.