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Glossary of Mortgage and Home Equity Terms

To navigate through our glossary, click on the first letter of the word you’re looking for.
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Rate Lock Option
Your interest rate range can either be locked or not locked. The interest rate range on the date and time you lock remains available to you for a set period of time and is unaffected by financial market fluctuations during this time. If your interest rate range is locked, the interest rate on your application will generally remain the same if there are no subsequent changes to the loan. If there are changes, your final interest rate at closing may be different, but will still fall within your interest rate range, as long as your rate lock period has not expired.
Real Assets
Real estate or real property owned by an individual or business.
Real Estate
See Real Property
Real Estate Owned (REO)
A foreclosed property, also known as a Real Estate Owned (REO) property, is a home that was once customer owned but is now owned by a bank. A foreclosure can occur when mortgage payments are not made over a period of time and measures taken to help are not satisfied.
Real Estate Settlement Procedures Act (RESPA)
A federal law requiring lenders to provide home mortgage borrowers with information on known or estimated settlement costs. It also establishes guidelines for escrow account balances.
Real Property
Property that includes land and anything affixed to the land, such as buildings and leasehold improvements. It may also include whatever is beneath the land (e.g., minerals, natural gas) and rights to the use of the property.
Refinancing
The repayment of a debt from the proceeds of a new loan using the same property as security.
Reissue or Refinance Rate (for Title Insurance)
A reissue or refinance rate is a reduced rate for title insurance that a homeowner may be eligible for on a refinance. The reduced rate may be applicable if the property was previously insured within a certain number of years.
Repayment Period
For a standard home equity line of credit, the point at which a borrower must begin to make fully amortizing monthly payments, or principal-and-interest payments that will completely repay the outstanding balance during a certain period of time.
Rescission Period
Under federal law, certain loan transactions secured by your home are subject to a rescission, or cancellation, period. Following receipt of all required disclosures and consummation of the contract, each owner of the property has up to three full business days to cancel the transaction. The right to cancel does not apply to loans made to purchase, construct, or acquire a primary residence, or to transactions secured by a secondary residence, vacation home, or rental property.
Reserves or Impounds
Terms used to mean “escrow” in some parts of the country. See Escrow.
Responsible Lending Principles
The fair lending practices that Wells Fargo follows throughout the home lending process.
Responsible Servicing Principles
The fair servicing principles that Wells Fargo follows after originating or acquiring a home loan.
Revolving Line of Credit
A line of credit that gives the borrower the ability to access available funds during the specified draw period. As the borrower pays down the principal, more credit becomes available during the draw period, up to the total amount of the approved line of credit.
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