Quitclaim Deed 

A type of deed in which the grantor transfers to the grantee all interest in the subject property that a grantor may have. The grantor makes no warranties of title whatsoever.

Radon 

A radioactive gas found in some homes that, if occurring in strong enough concentrations, can cause health problems.

Rate Cap 

The limit on the amount that the interest rate on an ARM can increase or decrease during any one adjustment period.

Ratified Sales Contract 

A contract that shows both you and the seller of the house have agreed to your offer. This offer may include sales contingencies, such as obtaining a mortgage of a certain type and rate, getting an acceptable inspections, making repairs, closing by a certain date, and the like.

Real Estate Agent 

An individual who is licensed to negotiate and arrange real estate sales; works for a real estate broker.

Real Estate Professional 

An individual who provides services in buying and selling homes. The seller pays the real estate professional a percentage of the home sale price. Unless you have specifically contracted with a buyer's agent, the real estate professional represents the interest of the property seller. Real estate professionals may be able to refer you to local lenders or mortgage brokers, but are generally not involved in the lending process.

Real Estate Settlement Procedures Act (RESPA) 

A law protecting consumers from abuses during the residential real estate purchase and loan process by requiring lenders to disclose all settlement costs, practices, and relationships.

Realtor 

A real estate agent or broker who is a member of the National Association of Realtors (NAR), and its local and state associations.

Refinance 

Obtaining a new mortgage with all or some portion of the proceeds used to pay off the original mortgage.

Refinancing 

Paying off one loan by obtaining another; refinancing is generally done to secure better loan terms (like a lower interest rate).

Rehabilitation Mortgage 

A mortgage that covers the costs of rehabilitating (repairing or Improving) a property; some rehabilitation mortgages like the FHA's 203(k) allow a borrower to roll the costs of rehabilitation and home purchase into one mortgage loan.

Replacement Cost 

The cost to replace damaged personal property without a deduction for depreciation.

Reverse Mortgage 

A non recourse loan against home equity providing cash advances to a borrower and requiring no repayment until a future time.

Revolving Account 

Line of credit that may be used repeatedly up to a certain specified limit.

Right of Rescission 

A borrower's right to cancel a home loan within three business days of closing.

Risk 

The possibility that you may lose some (or all) of your original investment. In general, the greater the potential gain from an investment, the greater the risk is that you might lose money.

Secondary Market 

The general name given to marketplaces where stocks, bonds, mortgages and other investments are sold after they have been issued and sold initially.

Secured Debt 

This type of debt is the result of money loaned on collateral, which might come in the form of the home or other valuable possessions. If the borrower neglects to pay off according to the terms agreed, the lender can acquire that collateral from the borrower.

Secured Loan 

A loan containing a provision that, upon default, certain pledged property may be claimed by the lender as payment of a debt.

Selling Agent 

The real estate agent obtaining the buyer rather than listing the property. The listing and selling agent may be the same person or company.

Service Charge 

A fee for service. In financial institutions, this is usually the charge applied against a members' account for maintaining a particular service.

Settlement Statement ("The HUD 1") 

The Real Estate Settlement Procedures Act requires lenders to give this disclosure at closing, or one day in advance of closing if the consumer requests it. It should be the final statement of settlement costs. The RESPA disclosure focuses on closing costs as a dollar amount.

Settlement 

Another name for closing.

Share Savings Account 

This main savings account establishes membership in SECU and must be opened for each individual before he/she may use any other credit union service. The account must be opened with a $10.00 initial deposit.

Shareholder's Equity 

The difference between the company’s assets and its liabilities.

Simple Interest 

A method of calculating interest on outstanding balances that produces a declining finance charge with each payment of the installment loan.

Single Premium Life Insurance 

A life insurance policy requiring one premium payment. Money for the premium is usually borrowed as part of a larger loan with the borrower paying interest on that amount over the term of the loan. This type of insurance is often high cost insurance that could be obtained elsewhere for a lower cost.

Special Forbearance 

A loss mitigation option where the lender arranges a revised repayment plan for the borrower that may include a temporary reduction or suspension of monthly loan payments.

Subordinate 

To place in a rank of lesser importance or to make one claim secondary to another.

Subprime Lender 

A lender that charges a finance rate that is higher than the "prime" rate offered by conventional lenders. Typically, it is a lender who approves loans for individuals who may have poor credit history or no credit history, or who have other characteristics (e.g. high LTV, property type, job) that justify a higher rate.

Survey 

A property diagram that indicates legal boundaries, easements, encroachments, rights of way, improvement locations, etc.

Sweat Equity 

Using labor to build or improve a property as part of the down payment.