HOMEBUYER EDUCATION GLOSSARY
Radon: A toxic gas found in the soil beneath a house that can contribute to cancer and other illnesses.
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 Professional: An individual who provides services in buying and selling homes. The real estate professional is paid a percentage of the home sale price by the seller. 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.
Refinance: Obtaining a new mortgage with all or some portion of the proceeds used to pay off the original mortgage.
Replacement Cost: The cost to replace damaged personal property without a deduction for depreciation.