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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.
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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 OF 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
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