Glossary of Terms - C
To better understand some of the industry terms and technical language used during the process of borrowing money for real estate purchases, search our glossary index. You will be talking the talk with one of our mortgage professionals in no time! If you still have questions, contact us.
Cap (interest rate)
The maximum interest rate increase allowable on an adjustable rate mortgage. Does not result in negative amortization. See Negative amortization.
Cap (payment rate)
The maximum payment amount increase allowable on an adjustable rate mortgage. May result in negative amortization. See Negative amortization.
Certificate Of Title
A statement that shows ownership of property, stating that the seller has clear legal title.
The concluding day of the real estate transaction, when title and deed pass from seller to buyer, the buyer signs the mortgage and pays the purchase price and closing costs.
Expenses (over and above the price of the property) incurred by buyers and sellers in transferring ownership of a property. Also called 'settlement costs.'
A Closing Disclosure is a five-page form that provides final details about the mortgage loan you have selected. It includes the loan terms, your projected monthly payments, and how much you will pay in fees and other costs to get your mortgage (closing costs).
A financial disclosure giving an account of all funds received and expected at closing, including the escrow deposit for taxes, hazard insurance and mortgage insurance for the escrow account.
An agent's or broker's fee for bringing the principals together and helping to negotiate a real estate transaction, often a percentage of the sales price or flat fee.
An agreement, frequently in writing, between a lender and a borrower to loan money at a future date, subject to certain conditions.
Refers to similar properties used for comparison purposes in the appraisal process. These properties will be reasonably the same size and location, with similar amenities and characteristics, so that the approximate fair market value of the subject property can be determined.
Ownership of a single unit in a multiunit building or complex of buildings. Along with this goes a share of ownership of the common areas.
A condition that must be met for a contract or a commitment to remain binding.
Any mortgage loan that is not insured by FHA, guaranteed by VA, of funded by a government authorized bond sale or grant.
To transfer real estate from one person to another.
The report to a prospective lender on the credit standing of a prospective borrower.