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GLOSSARY
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.
Reverse-annuity mortgage
Reverse-annuity mortgage is a type of real estate property loan that provides a stream of income payments to an elderly homeowner. These income payments are guaranteed until the borrower passes away. Debt repayments are not required until the borrower no longer lives in the home; at that time, the lender gains ownership of the home and sells it to recover the funds borrowed.
Revocable beneficiary
A revocable beneficiary is a designated person who will receive a payout from an insurance policy, and who does't have to consent to being removed from the policy. With a revocable beneficiary, the policyholder has the option to replace the designated person if circumstances change. This differs from an irrevocable beneficiary policy, which requires the beneficiary's permission for any changes made to the policy beneficiary.