call option
A provision that gives the mortgagee the right to call the mortgage due and payable at the end of a specified period for any reason.
Learn More >>
|
cap
A provision that limits how much the interest rate on a adjustable-rate mortgage may increase or decrease.
Learn More >>
|
cash-out refinance
A mortgage refinancing in which the amount of money received from the new loan exceeds the total needed to repay the first mortgage, closing costs, points, or any outstanding liens.
Learn More >>
|
certificate of title
A documented statement provided by an abstract company, title company, or attorney stating that the title to real estate is legally held by the current owner.
Learn More >>
|
chain of title
The history of all documents that transfer title to a parcel of real property, beginning with the earliest existing document.
Learn More >>
|
change frequency
The frequency of monthly payments and/or interest rate changes in an adjustable-rate mortgage.
Learn More >>
|
clear title
A title that is free of liens or legal questions as to ownership of the property.
Learn More >>
|
closing
A meeting where the sale of a property is completed with a buyer signing the mortgage documents and paying closing costs.
Learn More >>
|
closing statement
Also referred to as the HUD-1.
Learn More >>
|
cloud on title
Any conditions revealed by a title search that adversely affect the title to real estate.
Learn More >>
|
co-borrow
A person who signs a promissory note along with the borrower.
Learn More >>
|
collateral
Any asset guaranteeing the repayment of a loan.
Learn More >>
|
combined loan-to-value (CLTV)
The unpaid principal balances of all the mortgages on a property (first and second usually) divided by the property's appraised value.
Learn More >>
|
commission
The fee charged by a broker or agent for negotiating a real estate or loan transaction.
Learn More >>
|
commitment letter
A formal offer by a lender stating the terms under which it agrees to lend money to a home buyer.
Learn More >>
|
community property
In some western and southwestern states, 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.
Learn More >>
|
comparables
Comparables are properties with the same size, location, and amenities that have recently been sold.
Learn More >>
|
construction loan
A short-term loan for financing the cost of construction.
Learn More >>
|
consumer reporting agency (or bureau)
An organization that prepares reports detailing a borrower's credit history.
Learn More >>
|
contingency
Any condition that must be met before a contract is legally binding.
Learn More >>
|
conventional mortgage
A mortgage that is not insured or guaranteed by the federal government.
Learn More >>
|
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 timeframes after loan origination.
Learn More >>
|
convertible ARM
An adjustable-rate mortgage that can be converted to a fixed-rate mortgage under specified conditions.
Learn More >>
|
cost of funds index (COFI)
An index that is used to determine interest rate changes for certain adjustable-rate mortgages.
Learn More >>
|
covenant
A clause in a mortgage that obligates or restricts the borrower and that, if violated, can result in foreclosure.
Learn More >>
|
credit history
A record of an individual's open and fully repaid debts.
Learn More >>
|
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.
Learn More >>
|
credit repository
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.
Learn More >>
|