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GLOSSARY
Relocation mortgage - relo
A relocation mortgage, or relo, is a real estate property loan designed specifically for transferred employees. Relos have special characteristics, such as discounted closing costs or closing costs paid for by the employer. Relos can also trade at a premium on the secondary market. Because data indicates that relocated employees tend to move at regular intervals, the prepayment rate on these mortgages tends to be more predictable.
Remaining balance
The amount left to pay on a loan.
Remaining principal balance
Remaining principal balance is the amount of borrowed funds that has not been repaid as of a certain date.
Remaining term
The amount of time it will take to pay off the loan.
REMIC (Real Estate Mortgage Investment Conduit)
A tax entity that issues multiple classes of investor interests (securities) backed by a pool of mortgages.
Remote deposit capture
Remote deposit capture is a banking service that eliminates the need for a bank to present a physical check to another bank for processing. Instead, the checkholder scans the check and forwards the scan (but not the check itself) to the paying bank for processing.
Renegotiable rate
Renegotiable rate is the interest rate attached to a short-term loan that's structured with a balloon payment due at maturity. During the short-term period, the interest rate is fixed; at maturity, however, the lender has the option to refinance the remaining amount due at a higher interest rate.
Rent loss insurance
Rent loss insurance is a policy that protects an investment property owner from a loss in the property's rental value due to damage.
Rent to own
Rent-to-own describes an agreement between a merchant and a consumer whereby the consumer may use certain goods (usually furniture or appliances) temporarily by paying a periodic fee. The consumer can stop paying the fee and return the goods at any time. The consumer can also choose to purchase the goods by paying the periodic fee for a specified length of time, or by making an additional lump sum payment. The exact terms of this option would be stated in the rent-to-own agreement.
Rental reimbursement
Rental reimbursement is an optional type of auto insurance that pays for the cost of a rental car while your insured car is being repaired after an accident.
Renter's insurance
An insurance policy that pays for the loss and damage of personal property but not the real estate.
Reorganization plan
Reorganization plan is a set of agreements made in a bankruptcy proceeding between a bankrupt individual or business, its creditors and the court. The plan specifies how certain past-due debts will be repaid over a specific timeframe, usually five years or less. During this time, the debtor must also remain current on other debts as they come due. Reorganization plans are an alternative to liquidation.
Repayment
Repayment is the settlement, or paying back, of a debt.
Repayment period
Repayment period is the window of time when further draws cannot be made against a home equity line of credit or unsecured line of credit; the only transactions allowed are repayments.
Repayment plan
A modification of an existing loan after the borrower has been delinquent. Usually used when the borrower misses payments but the lender does not foreclose.