renegotiated-rate mortgage

renegotiated-rate mortgage (RRM)

Sometimes called a rollover mortgage,it is a type of balloon mortgage.The interest remains fixed for some period of time,usually 3 to 5 years.At the end,the parties may renegotiate the interest rate and,if they come to an agreement,the lender will change the rate with a minimum of fees and expenses.If they do not agree,the borrower is free to move the loan, but may not choose to simply keep the existing loan and its terms in place.

The Complete Real Estate Encyclopedia by Denise L. Evans, JD & O. William Evans, JD. Copyright © 2007 by The McGraw-Hill Companies, Inc.
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