Glossary

Rate The annual rate of interest on a loan, expressed as a percentage of 100.

Rate cap A limit on how much the interest rate can change, either at each adjustment period or over the life of the loan.

Rate lock-in A written agreement in which the lender guarantees the borrower a specified interest rate, provided the loan closes within a set period of time.

Rebate Compensation received from a wholesale lender which can be used to cover closing costs or as a refund to the borrower. Loans with rebates often carry higher interest rates than loans with "points" (see above).

Recording fee Fee charged by a government for entering into the public record a real estate purchase or sale.

Refinancing The process of paying off one loan with the proceeds from a new loan using the same property as security.

Residential mortgage credit report (RMCR) A report requested by your lender that utilizes information from at least two of the three national credit bureaus and information provided on your loan application.

Right of first refusal. A priority arrangement that grants a particular prospective buyer the first right to purchase a property, given certain agreed-upon conditions.

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