Mortgage Dictionary for words that start with letter C
call option - A provision in the mortgage that gives the mortgagee the right to call the mortgage due and payable at the end of a specified period for whatever reason.
cap - A provision of an adjustable rate mortgage (ARM) that limits how much the interest rate or mortgage payments may increase or decrease.
Capital - Accumulated wealth. A portion of wealth which is set aside for the production of additional wealth; specifically, the funds belonging to the partners or shareholders of a business, invested with the expressed intention of their remaining permanently in the business.
Capital Gain - Taxable profit on the sale of an appreciated asset.
capital improvement - Any structure or component erected as a permanent improvement to real property that adds to its value and useful life.
Caps - Caps are used on adjustable rate mortgages (ARM's) to limit the interest rate and/or the payment. Most ARMs have a periodic cap that is around 2% per year and a life cap of around 5%-6% over the life of the loan. Payment only caps sometimes create negative amortization where the principal balance of the loan increases rather than decreases over time.
cash-out refinance - A refinance transaction in which the amount of money received from the new loan exceeds the total of the money needed to repay the existing first mortgage, closing costs, points, and the amount required to satisfy any outstanding subordinate mortgage liens. In other words, a refinance transaction in which the borrower receives additional cash in hand.
Caveat Emptor - A legal term meaning let buyer beware.
Certificate of Eligibility - A certificate obtained by a veteran from a Veteran's Administration office which states that the veteran is eligible for a VA insured loan..
Certificate of Eligibility - A document issued by the federal government certifying a veteran's eligibility for a Department of Veterans Affairs (VA) mortgage.
Certificate of Occupancy - Document issued by a local governmental agency that states a property meets the local building standards for occupancy.
Certificate of Reasonable Value (CRV) - A document issued by the Department of Veterans Affairs (VA) that establishes the maximum value and loan amount for a VA mortgage.
Certificate of Reasonable Value (CRV) - An appraisal of property for the purpose of insurance by the Veteran's Administration.
Certificate of Title - A certification issued by a title company or a written opinion rendered by an attorney that the seller has good marketable and insurable title to the property which he is offering for sale. A certificate of title offers no protection against any hidden defects in the title which an examination of the public records could not reveal. The issuer of a certificate of title is liable only for damages due to negligence. The protection offered a homeowner under a certificate of title is not as great as
certificate of title - A statement provided by an abstract company, title company, or attorney stating that the title to real estate is legally held by the current owner.
Certified Copy - A true copy, attested to be true by the officer holding the original.
Cestui Que Trust - One having an equitable interest in property with the legal title being vested to the trustee.
chain of title - The history of all of the documents that transfer title to a parcel of real property, starting with the earliest existing document and ending with the most recent.
Chain of Title - The chronological order of conveyance of a parcel of land from the original owner to the present owner.
change frequency - The frequency (in months) of payment and/or interest rate changes in an adjustable rate mortgage (ARM).
Chattel - Personal property.
clear title - A title that is free of liens or legal questions as to ownership of the property.
Client - Person who employs the agent. Typically the seller is a client. The buyer can be a client (buyer's broker) or customer (seller's broker).
closing - A meeting at which a sale of a property is finalized by the buyer signing the mortgage documents and paying closing costs. Also called a settlement.
Closing - Conclusion of a real estate sale where the title of the property is transferred to the new owners and funds are transferred to the appropriate parties ( seller, old lender, real estate broker, etc.).
Closing Agent - A neutral third party that facilities the closing of a real estate transaction. The closing agent can be an escrow company, title company or attorney.
closing costs - Expenses (over and above the price of the property) incurred by buyers and sellers in transferring ownership of a property. Closing costs normally include an origination fee, an attorney's fee, taxes, an amount placed in escrow, and charges for obtaining title insurance and a survey.
Closing Costs - Expenses incurred by the buyer/borrower and the seller in a real estate or mortgage transaction. There can be non-recurring costs that include a one time charge for points, appraisal fees, etc. or a prorating of recurring costs such as taxes and insurance incurred while the new buyer/borrower owns the real estate.
Closing Day - The day on which the formalities of a real estate sale are concluded. The buyer signs the mortgage, and closing costs are paid. The final closing merely confirms the original agreement reached in the agreement of sale..
closing statement - Also referred to as the HUD1. The final statement of costs incurred to close on a loan or to purchase a home.
Closing Statement - Statement prepared for the buyer and seller itemizing all of the costs of a real estate transaction.
Cloud on Title - An outstanding claim or encumbrance which, if valid, adversely affects the marketability of title.
cloud on title - Any conditions revealed by a title search that adversely affect the title to real estate. Usually clouds on title cannot be removed except by a quitclaim deed, release, or court action.
Co-Maker - Equally responsible for repayment as the borrower.
co-maker or co-borrower - A person who signs a promissory note along with the borrower. A co-maker's signature guarantees that the loan will be repaid, because the borrower and the co-maker are equally responsible for the repayment. See endorser.
Code of Ethics - Standards subscribed to by members of the National Association of Realtors.
collateral - An asset (such as a car or a home) that guarantees the repayment of a loan. The borrower risks losing the asset if the loan is not repaid according to the terms of the loan contract.
collection - The efforts used to bring a delinquent mortgage current and to file the necessary notices to proceed with foreclosure when necessary.
Commercial Property - Property intended for use by all types of retail and wholesale stores, office buildings, hotels and service establishments.
commission - The fee charged by a broker or agent for negotiating a real estate or loan transaction. A commission is generally a percentage of the price of the property or loan.
Commission - Fee paid to a broker or other entity for services rendered. Real estate brokers and mortgage brokers receive a commission for the services they provide; a real estate broker secures a buyer for a property that is for sale and a mortgage broker secures a mortgage loan for the buyer to finance the purchase of a property. Commissions are generally paid as a percentage of the sales price in a real estate transaction or the loan amount in a mortgage transaction.
Commitment - A written promise to make or insure a loan for a specified amount and on specified items.
commitment letter - A formal offer by a lender stating the terms under which it agrees to lend money to a home buyer. Also known as a loan commitment.
Common Law - Rules based on usage as demonstrated by decrees and judgments from the courts.
Community Home Improvement Mortgage Loan - An alternative financing option that allows low- and moderate-income home buyers to obtain 95 percent financing for the purchase and improvement of a home in need of modest repairs. The repair work can account for as much as 30 percent of the appraised value.
Community Property - Property owned jointly by husband and wife.
community property - A form of ownership under which property acquired during a marriage is presumed to be owned jointly unless acquired as separate property of either spouse.
Comparables - Properties which are similar in value to a particular property and are used as comparisons to determine the fair market value of a specified property.
comparables - An abbreviation for comparable properties; used for comparative purposes in the appraisal process. Comparables are properties like the property under consideration; they have reasonably the same size, location , and amenities and have recently been sold. Comparables help the appraiser determine the approximate fair market value of the subject property.
Condemnation - The taking of private property for public use by a government unit, against the will of the owner, but with payment of just compensation under the government's power of eminent domain. Condemnation may also be a determination by a governmental agency that a particular building is unsafe or unfit for use.
Conditional Commitment - A lenders promise to issue a loan subject to certain conditions. Generally, the lender will not fund the loan until the conditions have been met.
Conditional Offer - Purchase offer in which the buyer proposes to purchase property only after certain events (sale of another home, finding a loan commitment, etc.) occur.
condominium - A real estate project in which each unit owner has title to a unit in a building, an undivided interest in the common areas of the project, and sometimes the exclusive use of certain limited common areas.
Condominium - A structure of two or more units, the interior space of which are individually owned.
Consideration - Anything of value given to induce another to enter into a contract. Earnest money deposit on a sales contract is consideration.
Construction Loan - Short-term financing for real estate construction. Generally followed by long term financing called a take out loan issued upon completion of construction.
construction loan - A short-term, interim loan for financing the cost of construction. The lender makes payments to the builder at periodic intervals as the work progresses.
consumer reporting agency (or bureau) - An organization that prepares reports that are used by lenders to determine a potential borrower's credit history. The agency obtains data for these reports from a credit repository as well as from other sources.
Contingency - Condition which must be satisfied before the buyer can consummate the purchase of a property. Contingencies are generally outlined in the purchase contract between the buyer and seller.
contingency - A condition that must be met before a contract is legally binding. For example, home purchasers often include a contingency that specifies that the contract is not binding until the purchaser obtains a satisfactory home inspection report from a qualified home inspector.
Contract of Purchase - An agreement between parties for the sale of real estate. In some states it is synonymous with a Purchase Agreement, Sales Agreement, or Land Contract. In Texas it is known as an Earnest Money Contract.
Contract of Sale - A purchase transaction in which the buyer receives possession of the property, but the seller retains title.
Contract Sales Price - The full purchase price as stated in the contract.
Conventional Loan - A mortgage loan that is not guaranteed or insured by the government. FHA and VA loans are not conventional loans.
conventional mortgage - A mortgage that is not insured or guaranteed by the federal government.
Conventional Mortgage - A loan neither insured by the FHA nor guaranteed by the VA.
convertibility clause - A provision in some adjustable rate mortgages (ARMs) that allows the borrower to change the ARM to a fixed-rate mortgage at specified time frames after loan origination.
convertible ARM - An adjustable rate mortgage (ARM) that can be converted to a fixed-rate mortgage under specified conditions.
Convertible ARMs - ARMs that have a provision allowing the borrower to convert the mortgage to a fixed rate term. The conversion feature is outlined in the mortgage note and has certain restrictions.
cooperative (co-op) - A type of multiple ownership in which the residents of a multiunit housing complex own shares in the cooperative corporation that owns the property, giving each resident the right to occupy a specific apartment or unit.
Cooperative Housing - An apartment building or a group of dwellings owned by a corporation, the stockholders of which are the residents of the dwellings. It is operated for their benefit by their elected board of directors. In a cooperative, the corporation or association owns title to the real estate. A resident purchase stock in the corporation which entitles him to occupy a unit in the building or property owned by the cooperative. While the resident does not own his unit, he has an absolute right to occupy his un
Cost Basis - Accounting figure that includes original cost of property plus certain expenses to purchase, money spent on permanent improvements and other costs, minus any depreciation claimed on tax returns over the years.
cost of funds index (COFI) - An index that is used to determine interest rate changes for certain adjustable rate mortgage (ARM) plans. It represents the weighted-average cost of savings, borrowings, and advances of the 11th District members of the Federal Home Loan Bank of San Francisco.
Cost Plus Contract - A building contract setting the builder's profit at a set percentage of actual cost of labor and materials.
Counteroffer - A new offer made as a result of another offer, which cancels the original offer
County - A division within a state, usually encompassing one or more cities or towns.
covenant - A clause in a mortgage that obligates or restricts the borrower and that, if violated, can result in foreclosure.
Covenant - An agreement written into deeds and other instruments promising performance or nonperformance of certain acts or stipulating certain uses or non users of the property.
credit - An agreement in which a borrower receives something of value in exchange for a promise to repay the lender at a later date.
credit history - A record of an individual's open and fully repaid debts. A credit history helps a lender to determine whether a potential borrower has a history of repaying debts in a timely manner.
credit report - A report of an individual's credit history prepared by a credit bureau and used by a lender in determining a loan applicant's creditworthiness. See merged credit report.
credit repository or credit bureau - An organization that gathers, records, updates, and stores financial and public records information about the payment records of individuals who are being considered for credit.
Customer - Typically, the buyer (before buyer agency laws), as opposed to the principal (seller).
Search for any term related to mortgage calculators. Useful for students who are learning mortgage
and families who wants to acquire mortage. Just enter any mortgage term and click the
search button. You may see all the mortgage terms which starts with a specific letter.
Choose from drop down list and click search button to see results. If you enter
a mortgage term and choose a letter, it tries to find the term that starts with a letter
and contains the mortgage term.
|New And Improved Mortgage Dictionary
The search engine of our mortgage dictionary got an extreme makeover. We saw the need
as it fails to pick up the most accurate and relevant result. Now, the search results
show the most accurate and relevant terms for any search terms. We are also contemplating
to add more terms soon.
|Most Popular Searches In Our Mortgage Dictionary
Mortgagor and Mortgagee -
Mortgagor is also called the borrower or owner, while Mortgagee is also called the lender.
Face Value -
The borrower promises to the pay the original principal amount which is the face value of the mortgage.
First mortgage and Second mortgage -
The first mortgage refers to the current mortgage, while the second mortgage refers to the additional mortgage.
Fair Market Value -
It is the median price between the highest price acceptable to buyer and lowest price acceptable to seller.
Market Value -
It is the most likely price at which the property would sell.