Loan Glossary

Replacing an existing mortgage with a new one to get a lower interest rate, change the loan term, or both — without taking out additional cash. Different from a cash-out refinance.

Property acquired by a lender through foreclosure after failing to sell at a foreclosure auction. REO properties are sold by the lender's REO department.

A recourse loan allows the lender to pursue a borrower's personal assets if the collateral is insufficient. A non-recourse loan limits the lender's recovery to the collateral only — personal assets are protected.

Replacing an existing loan with a new loan, typically to lower the interest rate, change the loan term, switch from ARM to fixed, or access equity through a cash-out refinance.

A federal law requiring lenders to disclose settlement costs and prohibiting kickbacks between settlement service providers. Ensures borrowers receive fair, transparent loan information.