Renegotiate Rate Mortgage (RRM)
Definition of "Renegotiate rate mortgage (RRM)"
Also called a rollover mortgage. Provides a borrower with a fixed-rate mortgage that expires at a preestablished time, such as in four years. This permits the lender and borrower to renegotiate the mortgage rate periodically. The balance of the mortgage comes due in a balloon payment, but can be refinanced at 'going' interest rate. This type of mortgage helps the lender avoid being the cost of money. Here, at intervals such as 3 to 5 years, the loan is renewed at the prevailing rate
Popular Real Estate Terms
A company that is terminated within 3 years. According to the tax law, a gain arising from the sale or liquidation of such a business is considered ordinary income to the individual ...
An account into which payment is made for particular expenses to assure that money will be available. An example is a special account the homeowner's attorney establishes for advance ...
Also called functional depreciation. Loss of value that results from improvements that are inadequate, outdated, overly adequate, or improperly designed for today's needs. May be curable or ...
Device that cuts off an electric circuit when the current becomes to strong. ...
Most typically, the definition of real estate spread implies the difference between the price offered by a home buyer and the initial amount asked for by the seller of real property. It ...
Structure built into the water from the land providing a facility for boats to tie up. A dock will often provide utility access ...
Restoring real property to an improved state. The restoration is usually needed because the property's condition has worsened. ...
A method of brick construction where the bricks are laid with their sides facing outward. ...
Return before taxes on the capital invested in real estate property. ...
Have a question or comment?
We're here to help.