Cap: This is when there is a limit on the value that an interest rate or mortgage payment may either grow or shrink that exists, this is applicable for an adjustable rate mortgage (APR).
This is the borrowers ability to make the required mortgage payments on time, this depends on the income and income stability of the borrower, plus any assets and savings that they may hold.
This is a transaction where the cash that is needed to repay the current mortgage is given.
Certificate of Deposit:
This is a document given by a financial institution which shows evidence of the deposit.
Certificate of Eligibility:
This is a document that certifies the eligibility for a VA-guaranteed mortgage loan for a veteran, it is issued by the U.S. Department of Veterans Affairs.
Chain of Title:
This is the history of all documents that have had a transfer of title to a parcel of real property. The history begins with the first document created for that property, finishing with the most recent document.
This is where a change in the original construction plans has been ordered by the owner of the property or the general contractor, meaning a change in the construction of the property is being applied for.
This is an ownership which is free of any defects, liens and any other legal encumbrances that could exist.
This is the name given to the process of completing a financial transaction. In the case of a mortgage loan this is the signing of the mortgage documents, disbursing any funds and transferring the ownership of the property, if required.
This is the person who is responsible for the multiple activities os closing that take place during the closing of a transaction, this includes the events that take place for preparation and also the process of recordation of the closing documents, as well as the disbursement that takes place for funds being held. Closing is usually conducted by escrow and title companies or attorneys.
These are fees that are charged there and then that are linked to a transaction. Money that is paid by the buyer or seller of the property to close the mortgage loan usually includes fees such as a loan origination fee, survey, attorneys fee, title examination and insurance, prepaid items and other tax / insurance charges.
This is the date in which the sale of a property is to be finalised and the transaction of a loan is completed.
This is the final step taken in executing a transaction involving a real estate.
This is any borrower other than the name of the first borrower that appears on both the mortgage note and application. Even if the co-borrower owns the property jointly with the first borrower they both share liability for the note.
This is an asset that is pledged for a loan as a security plan, the borrower is at a risk of losing this assure they have declared if the repayment of the loan is not completed according to the terms of the loan agreement. For example, the asset of a mortgage would be the house that the mortgage was taken out for.
This is a feee that is charged by the party performing services, it is often based on a certain percentage of the price of the items that have been sold.
This is a binding offer given by the lender, it includes the amount of the mortgage that they are lending as well as the interest rate and repayment terms of the mortgage.
Common areas are portions of any land, building or extensions theatre owned by the planned unit development or condominium homeowners association.
This is an term used for properties that are comparable, these are properties that are used to determine the cost of a similar property when that property is being appraised.
This is something that is given up or is agreed to during the negotiation of the sale of a property. As an example, the sellers may come to an agreement to help pay towards the closing costs.
This is a build or complex that consists of multiple apartments or houses, owned by individual people. All owners involved in the property have rights to use the common areas of the property but the owner of the condominium unit does not own the rights to common elements of the property such as exterior walls and floors. Fees for the units are usually charged, these include the association fees for property upkeep, building maintenance, taxes and insurance on the common areas and reserves of money for any improvements that may need to take place.
This is a loan taken out to finance any costs of construction or improvements to be carried out on a property, the lender is responsible for releasing payments at periodic intervals to the contraction company.
This is a condition that needs to be met before a contract can be bound legally. This could be the case of a sales contract not binding unless a home inspection is taken out on the property being purchased.
This is a mortgage that is not insured or guaranteed by any agencies, including the Federal Government, Federal Housing Administration, the U.S department of Veterans Affairs or the Rural Housing Service.
This is a provision belonging to certain ARM loans that allow the borrow to convert the ARM into a fixed-rate mortgage, this is only at specified times after the loan is taken out.
This is an adjustable-rate mortgage (ARM) that also allows the borrower to convert the loan they have taken out to a fixed rate mortgage, this is only under special conditions.
Cooperative (Co-op) Project:
This is a project where a title is held by a corporation to a specified residential property, of which it sells shares of to buyers. These buyers then receive a proprietary lease as their title.
Cost of Funds Index (COFI):
This is an index that is used to determine any changes in interest rates for certain ARM plans. The index is used to represent the weighted-average cost of borrowings, deposits, advances and other values.
This is an offer made after a previous offer has been stated, this could be a seller akin a counter offer of a slightly higher price than the buyer offered originally.
This is the case allowing a person to borrow money and paying back the debt over a period of time. The amount of credit available to a borrower is based on the opinion given to the borrower by the lender, this is based on the borrowers financial situation and reliability with other factors also taken into account.
This is a company that gathers necessary data regarding clients that make use of credit. A credit bureau sell this data as a report to lenders and businesses as a credit report.
This is a record showing an individual or company's borrowing and repayment history, it also shows information on any late payments that were made or even any cases of bankruptcy.
Credit Life Insurance:
This type of insurance is used to pay off a specified amount of debt and / or credit account if the borrower owning the account passes away during the policies existence.
A credit bureau provides a credit report which can be used by the client to examine the borrowers use of any credit they have made use of, the report consists of payment history from the credit institutions that the borrow used.
A value used to represent the credit risk that a borrower imposes, this value is based on a statistical evaluation of information that has been gathered from the borrowers credit history proven to be a valid prediction of loan performance.
The person and / or company that money is owed to from borrowing.
If you have a good credit rating and show reliability of paying money back in previous situations then you will be considered suitable to receive credit, therefore being creditworthy.
Real Estate Terminology C to Resources