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Glossary R
Ratios
See Debt-To-Income Ratio
Rebate
The money a lender receives from the bank when they deliver a loan with an interest rate higher than “par.” (That costs zero points).
Reconveyance
When a mortgage is paid in full, a reconveyance is recorded with the county. This reconveyance transfers the title of the property back to the owner and shows everyone that the particular loan has been paid in full.
Reconveyance Fee
A fee charged by the lender to prepare the reconveyance.
Recording
Entering a legal document into the public records
Recording Fee
The county recorder charges a fee for every page that is recorded.
Rescission
When a borrower exercises his right to cancel.
Reserves
The money required by the lender to be verified in the borrower’s possession at close of escrow. The amount will be stated in number of months of PITI payments. The lender is expecting this money to be used for emergencies.
Right to Cancel
Federal law requires that a borrower is given notice in the loan documents that he has three days in which to cancel the loan. This pertains to a refinance of a primary residence. It does not apply to a loan used to purchase a property.
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Letter A