Relocation mortgage (relo),
Definition of Relocation mortgage (relo):
Relocation mortgages often involve financial contributions by the employer. These contributions can include subsidies to cover closing costs, interest rate buydowns, and below market interest rates. Relocation mortgage rates may be originated at rates 25- to 50-basis points (BPS) below market interest rates for similar conventional mortgages. One basis point is equal to 1/100th of 1% and reduces the loan's interest rate.
Designed explicitly for relocating and transferring employees, the relocation mortgage (Relo), is a type of alternative mortgage product. Corporations take advantage of these loans as part of the signing or employment package for upper-level employees. Relo mortgages make the moving process more comfortable and economical.
A type of mortgage that aims to offer employees financial ease when relocating to a new place due to change of employment. Employers usually offer financial assistance to their employee by providing them the closing fee. There are mortgage companies that offer and specialize in relo mortgages.
Meaning of Relocation mortgage (relo) & Relocation mortgage (relo) Definition