Revolving credit

A credit line that is restored as the borrower pays off what is owed

Credit cards and home equity credit lines have revolving credit. For example, you could go on a shopping spree using your Visa card and charge up to $600. As you pay off your Visa bill, your $600 credit amount will be restored and you can go for the next round of shopping. Loans, such as mortgages and student loans don’t have revolving credit.

Residential loan application form (1003)

The name of the standard loan application that all lenders require a borrower to complete when applying for a loan.

See: Application

Repayment plan

A time table of mortgage payments over a loan’s term thats hows how much is applied to both the principal and interest.

See: Amortization schedule

Rent

Payment in exchange for the temporary use of something

When you pay rent for an apartment or house, you are not building equity unless your rent payments are going towards a down payment to own the home in the future. The owner of the property is called a landlord and the renter is called a tenant. The rent is mutually agreed upon by both the landlord and the tenant, and is written into a rental agreement or lease.

Remaining balance

The total amount that a borrower owes on a loan

Remaining term
The amount of time until a loan is completely paid off

If you are in your fifth year of paying off a 30-year loan, the remaining term is 25 years.