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GLOSSARY OF MORTGAGE TERMS:
Page 1 of 4 | 60 terms beginning with 'C' A written letter of agreement detailing the terms and conditions by which the lender will lend and the borrower will borrow funds to finance a home. 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. 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 ARM limiting how much the interest rate or mortgage payments may increase. Capital expenditure The cost of an improvement made to extend the useful life of a property or to add to its value. Capital improvement Any structure or component erected as a permanent improvement to real property that adds to its value and useful life. Cash Out A loan transaction in which the borrower receives funds at the time of closing. 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. Certificate of deposit A document written by a bank or other financial institution that is evidence of a deposit, with the issuer’s promise to return the deposit plus earnings at a specified interest rate within a specified time period. 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 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 Title A certificate 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 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 that offered in a title insurance policy. 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. Change frequency The frequency (in months) of payment and/or interest rate changes in an adjustable-rate mortgage (ARM). Chattel Another name for personal property. Claim An amount requested of an insurer, by a policyholder or a claimant, for an insured loss. Clear title A title that is free of liens or legal questions as to ownership of the property Closing The occasion where a sale is finalized; the buyer signs the mortgage, and closing costs are paid. Also called "settlement." |