 |
|
|
|
|
GLOSSARY 'C' |
|
|
1. |
Caps:
A set percentage by which an interest rate or monthly payment can change in an ARM, ither at each adjustment or over the life of the mortgage.
|
|
|
|
|
|
|
2. |
Cash Flow:
The amount of cash derived over a certain period of time from an income-producing property.
|
|
|
|
|
|
|
3. |
Cash Out Refinancing:
When the principal amount of a new mortgage is greater than the principal amount outstanding of the existing mortgage, and all or a portion of the equity is converted to cash.
|
|
|
|
|
|
|
4. |
CC&R's - Covenants, Conditions and Restrictions:
A document that controls the use, requirement and restrictions of a property.
|
|
|
|
|
|
|
5. |
Certificate of Completion:
A document issued by an engineer or an architect stating that construction is complete according to specifications.
|
|
|
|
|
|
|
6. |
Certificate of Occupancy:
Written authorization given by a local municipality that allows newly completed or substantially renovated structure to be inhabited.
|
|
|
|
|
|
|
7. |
Certificate of Reasonable Value (CRV):
A document that establishes the maximum value and loan amount for a VA guaranteed mortgage.
|
|
|
|
|
|
|
8. |
Chain of Title:
A chronology of documents transferring title from the original owner to the present owner.
|
|
|
|
|
|
|
9. |
Charge Off:
Also referred to as a profit/loss write off. A debt that cannot be collected.
|
|
|
|
|
|
|
10. |
Clear Title:
Unencumbered title to real property, free of liens or defects.
|
|
|
|
|
|
|
11. |
Closing:
Also referred to as settlement. The delivery of a deed, the signing of a note, and the disbursement of funds necessary to consummate a sale or loan transaction.
|
|
|
|
|
|
|
12. |
Closing Costs:
Fees paid by the borrower when a property is purchased or refinanced.
|
|
|
|
|
|
|
13. |
Cloud on Title:
Also referred to know as "A title defect." Any outstanding claim or encumbrance which would affect or impair title.
|
|
|
|
|
|
|
14. |
Co-Borrower:
Additional person equally responsible for payments on a mortgage.
|
|
|
|
|
|
|
15. |
Collateral:
Personal property pledged as security for a debt.
|
|
|
|
|
|
|
16. |
Collection Account:
A delinquent consumer debt, which has not been able to be collected by the grantor.
|
|
|
|
|
|
|
17. |
Combined Loan to Value (CLTV):
The principal balance of all mortgages on the property divided by the value of the property.
|
|
|
|
|
|
|
18. |
Commitment:
A written agreement, between a lender and a borrower, to loan money at a future date under specified conditions. In secondary marketing, a written agreement between a lender and an investor to buy and sell mortgages under specific terms.
|
|
|
|
|
|
|
19. |
Comparables:
Comparable properties used to determine the value of a subject property in an appraisal.
|
|
|
|
|
|
|
20. |
Compensating Factor:
A positive characteristic of a mortgage applicant which may offset a negative factor.
|
|
|
|
|
|
|
21. |
Condominium:
A form of real estate ownership whereby the purchaser receives title to a unit in a multi-unit structure and proportionate interest in common areas.
|
|
|
|
|
|
|
22. |
Conforming Mortgage Loan:
A mortgage loan that meets required size, type and age to be eligible for purchase by federal agencies.
|
|
|
|
|
|
|
23. |
Construction Loan:
A short-term loan to finance the cost of construction.
|
|
|
|
|
|
|
24. |
Consumer Credit Counseling Service (CCCS):
A service that negotiates reduced payments/balances for clients who cannot manage their current debts.
|
|
|
|
|
|
|
25. |
Contingency:
A condition that must be satisfied before a contract is binding.
|
|
|
|
|
|
|
26. |
Contract of Sale:
A contract between a purchaser and seller of real property to convey title after conditions have been met.
|
|
|
|
|
|
|
27. |
Conventional Loan:
A mortgage that is neither insured by the FHA nor guaranteed by the VA.
|
|
|
|
|
|
|
28. |
Conversion:
The right of a borrower to convert an adjustable or balloon loan into a fixed rate loan.
|
|
|
|
|
|
|
29. |
Conversion Clause:
A provision in some ARMs that enables you to change an ARM to a fixed-rate loan.
|
|
|
|
|
|
|
30. |
Convertible Mortgage:
A type of adjustable rate mortgage that may be converted to a fixed-rate mortgage at specified intervals during a predetermined time period.
|
|
|
|
|
|
|
31. |
Conveyance:
The act of transferring title or a piece of real property.
|
|
|
|
|
|
|
32. |
Cooperative (Co-op):
In real estate, a form of multiple ownership in which an entity holds title to a property and grants occupancy rights to shareholder tenants through proprietary leases.
|
|
|
|
|
|
|
33. |
Corporate resolutions:
The formal actions by the board of directors of a corporation approving a transaction or decision.
|
|
|
|
|
|
|
34. |
Cost Approach:
An appraisal method estimating the replacement cost of a structure minus the depreciation, plus the land value.
|
|
|
|
|
|
|
35. |
Cost of Funds Index (C.O.F.I.):
Index based on the cost of funds of the 11th District of the Federal Home Loan Bank, used to determine interest rate changes for adjustable rate mortgages.
|
|
|
|
|
|
|
36. |
CRB - Certified Residential Broker:
A broker who is a member of the National Association of Realtors, has five years experience as a licensed broker and has completed five required Residential Division courses.
|
|
|
|
|
|
|
37. |
Credit Rating:
A rating given to a person or company based on their creditworthiness or risk profile.
|
|
|
|
|
|
|
38. |
Credit Report:
A report by an independent credit agency verifying information concerning an applicant's credit standing.
|
|
