Glossary of Terms

• Rate Guarantee

  A guarantee, at the lender's option, that the rate in effect on the date the application is submitted, or at the time of final approval, will be the final rate on the loan when funded. This guarantee usually expires after a specified period of time.
  
  
• Refinance

  Negotiation of a new loan in order to pay off an existing loan. Homes are usually refinanced in order to (a) take advantage of lower interest rates; (b) switch from one loan type to another (e.g. from adjustable to fixed), or (c) to generate cash from built-up equity. Since refinancing generally involves new loan costs, the costs must be weighed against the benefits to be gained.
  
  
  
  

• REALTOR

  A designation given to a real estate licensee who is a member of a board associated with the National Association of REALTORS .