A B C D E F G H I J K L M N O P Q R S T U V W X Y Z CCall option -- A clause in the mortgage that gives the lender the right to "call" the mortgage due and payable at the end of a given length of time, for whatever reason.
Capital expenditure -- The cost of an improvement made either to extend the life of a property or to increase its value.
Capital improvement -- Any item, structure or addition which is a permanent improvement to the property.
Caps (interest) -- Limits on the amount that the interest rate on an ARM can change per year and/or during the life of the loan. Payment caps limit the amount that monthly payments for an ARM may change.
Cash flow -- The amount of cash gained over a period of time from an income-producing property. It should be enough to pay the expenses for that property (mortgage payment, maintenance, utilities, etc.
Certificate of deposit -- A certificate from a bank stating that the named party has a specified sum on deposit, usually for a given period of time at a fixed rate of interest.
Certificate of eligibility -- A document given to qualified veterans entitling them to VA loans for homes or businesses.
Certificate of reasonable value (CRV) -- An appraisal issued by the VA showing a property's current market value.
Certificate of title -- A document which confirms that the title to a property is legally held by the current owner.
Certificate of veteran status -- The document given to veterans or reservists who have served 90 days of continuous active duty (including training time). This document enables veterans to obtain lower down payments on certain FHA-insured loans.
Chain of title -- The history of all of the title transfers (conveyances and encumbrances) to a piece of real estate.
Change frequency -- The frequency of payment and/or interest rate changes in an ARM, usually expressed in months.
Chattel -- Personal property.
Clear title -- A title that is free of liens and mortgages.
Closing -- The final meeting between the buyer, seller and lender (or their agents) at which the property and funds legally change hands.
Closing costs -- Expenses incurred by buyers and sellers in transferring ownership of a property, such as an origination fee, taxes, title insurance, transfer fees, points, title charges, credit report fee, document preparation fee, mortgage insurance premium, inspections, appraisals, prepayments for property taxes, deed recording fee, and homeowners insurance.
Closing statement -- A detailed written summary of the financial settlement of a real estate transaction, showing all charges and credits made, all cash received and paid.
Cloud on title -- Anything found by the title search which indicates that a property is not owned free and clear by the purported owner.
Collateral -- Something of value (such as a car or a home) deposited with a lender to guarantee the repayment of a loan. The borrower risks losing the asset if the loan is not repaid properly.
Collection -- Forcing a borrower to pay what he owes on a loan.
Commission -- The compensation paid to a real estate broker (or by the broker to the salesman) for services rendered. It is usually a predetermined percentage of the selling price.
Commitment -- A promise by a lender to make a loan to a borrower or builder, or a promise by an investor to purchase mortgages from a lender.
Comps, comparables -- Comparable properties; properties in close proximity which have sold recently that are about the same size with similar amenities, used to determine value of a property by comparison.
Compound interest -- Interest computed on the principal and the unpaid accumulated interest of a loan.
Condominium -- A building (or group of buildings) in which individuals own separate portions of the building(s) and possibly share common areas.
Construction loan (interim loan) -- A loan to provide the funds necessary to pay for the construction of buildings or homes. The lender advances funds to the builder at periodic intervals as the work progresses.
Contingency -- A specific condition that must be met before a contract is legally binding. Usually that the house must pass the home inspection and the borrower must get a loan.
Contract for deed (conditional sales contract, installment contract) -- A contract for the sale of real estate where the deed (title) of the property is transferred only after all payments have been made. This is a risky contract, because buyers can lose their entire investment if the owner declares bankruptcy before the deed has been transferred.
Contract of sale -- Agreement between the buyer and seller which conveys title after certain conditions are met, outlining purchase price, terms, etc.
Conventional loan -- A mortgage loan not insured by the FHA or guaranteed by the VA.
Convertibility clause -- A clause in some ARMs which allows the buyer (borrower) to change to a fixed-rate mortgage at a specified time.
Conveyance -- A written document (such as a deed or lease) that transfers ownership interest in a property from one person to another.
Cooperative (co-op) -- Residents of co-op housing complexes own shares in the cooperative corporation that owns the property. Each resident has the right to occupy a specific dwelling, but they don't actually own it - they own shares in the corporation that owns it.
Creditor -- A person or entity (a bank or other lender) who funded the loan and to whom a debt is owed.
Cul-de-sac -- A dead-end street with a turn-around space at the end. These are attractive to some homeowners because the ending street cuts down on "thru" traffic, speeding, etc.
