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GLOSSARY
Residential mortgage
Residential mortgage is a loan that's secured by residential property. A residential mortgage is generally a long-term debt facility that can be structured with either fixed or adjustable interest. In the U.S., residential mortgage interest is tax-deductible.
Residual income
Residual income is the money left over from earnings after debts are paid. Typically, residual income is analyzed in terms of one month's income and debt requirements; the level of one's residual income is a factor that lenders consider when evaluating a borrower's creditworthiness. Higher residual income indicates that the individual will be more capable of meeting required debt payments when unexpected expenses arise.
Residual interest
Residual interest is the interest available to lower tranches of investors in a real estate mortgage investment conduit. Residual interest isn't paid out until all regular interest payments have been made to the higher tranches of investors.
Residual value
An agreed upon amount which represent the value of the car at the end of a lease.
RESPA
See Real Estate Settlement Procedures Act
Respite care
Respite care is temporary, short-term care of an ill, disabled, or invalid person, usually for the purposes of giving the primary caregiver a break. Respite care can be provided in-home or in another location, as agreed upon by the primary caregiver, the person needing care, and the respite provider.
Restrictive covenant
A restrictive covenant is a rule that limits someone's rights, usually either a borrower or a property owner. Homeowners associations place restrictive covenants on property owners to keep them from using the property in ways that are considered detrimental to the neighborhood. Commercial loan agreements also might include restrictive covenants, to prohibit the business from taking actions that may hinder its ability to repay the loan.
Restructured loan
When a mortgage's basic terms, such as interest rate, term and monthly payment, have been changed to prevent foreclosure.
Retail lender
A retail lender is a financial institution that lends money to individual borrowers by way of mortgage loans, auto loans, and personal loans. Consumer banks, mortgage lenders, and credit unions are retail lenders.
Retail lending
Retail lending is the service of lending money to individual consumers, such as homebuyers and auto buyers.
Retail note
Retail note, also called a retail bond, is a type of debt investment that pays a fixed rate of interest for a specified time period. Retail notes are subordinated (meaning they have a lower priority relative to other debt) and unsecured. Investors purchase retail notes from a broker or from the issuer, which is usually a large corporation.
Retire
To retire, in terms of employment, is to leave a job, either to seek another job, or to stop working entirely. In terms of debt, to retire is to pay off or fulfill a debt obligation.
Return on investment
A percentage which dictates how much you invest in making improvements versus how much it is worth to someone who is potentially interested in buying your home.
Returned or "bounced" check charge
Returned or "bounced" check charge is a fee charged to an accountholder when the bank returns a check unpaid because the account balance was not high enough to cover the check amount.
Reverse mortgage
A type of loan that allows seniors homeowner to use the funds from their built-up equity. There are no payments due until the borrower moves, dies, or the property is sold. The final payment will not exceed the proceeds from the sale of the home.