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GLOSSARY
Rabbi Trust
A Rabbi trust, also called a grantor trust, is a legal entity created by an employer to provide for non-qualified employee benefits. The name comes from the first IRS ruling on the subject, which involved a synagogue.
Radon gas
Radon is a cancer-causing, radioactive gas that kills 21,000 Americans a year, according to the U.S. Environmental Protection Agency. Some states' real estate laws require a seller to inform potential buyers when it is present.
Rain check
A rain check is the promise by a business to a customer that a sold out sale item can be purchased at some later date for the discounted price. A rain check can also be a ticket entitling a person to a replacement event, when the original event is rained out.
RAL
RAL stands for refund anticipation loan; it's a short-term loan offered to a taxpayer who's expecting a tax refund. The borrowed funds are repaid when the tax refund arrives.
Rate
The percentage of interest a borrower pays for the use of money.
Rate after intro
The interest rate that will apply to the line of credit after the promotional or introductory period is over.
Rate and term refinance
Rate and term refinance is the restructure of a mortgage loan that involves changing the interest rate and maturity length of the loan. The loan amount doesn't change with a rate and term refinance. These mortgage loans are often less expensive than cash-out refinances, which are made in amounts larger than the original mortgages.
Rate improvement mortgage
A mortgage with a one time interest rate cut that allows a borrower to save money on his mortgage without paying a refinancing charge.
Rate index
This index is used to determine the interest changes on an adjustable rate mortgages and variable rate loans. It is expressed in a table format and quotes the yields that are being paid on debts like Treasury Bills and bank deposits.
Rate lock
A commitment guaranteed by a lender that an interest rate will not change on a quoted mortgage for a specific period of time.
Rate shopping
Rate shopping is the process of applying for a loan with more than one lender, in an effort to find the most attractive terms.
Rate-improvement
Rate-improvement mortgage is a fixed-rate, real estate loan that includes a rate-improvement option. The rate-improvement provision allows the borrower to reduce the loan's interest rate one time during the loan's life. Without this provision, such a rate change would require a refinance.
Rate-improvement mortgage
Rate-improvement mortgage is a fixed-rate, real estate loan that includes a rate-improvement option. The rate-improvement provision allows the borrower to reduce the loan's interest rate one time during the loan's life. Without this provision, such a rate change would require a refinance.
Rating
A rating, in finance, is an assessment of the financial strength of a person, business, or debt issue. Credit ratings are used for people and businesses, stock ratings are used for equities, and bond ratings are used for commercial and municipal debt.
Reaffirmation agreement
An agreement by someone involved in a Chapter 7 bankruptcy to continue paying a debt after the bankruptcy. This is typically used to keep a car from being repossessed during bankruptcy.