Mortgage Terms

A, B, C, D-E, F-G, H-K, L-M, N-Q, R-S, T-Z

 

Caps
limits on the amount of interest or payments on an adjustable-rate mortgage.

Certificate of Eligibility
a certificate obtained by a veteran from a Veteran's Administration office which states that the borrower is eligible for a VA insured loan.

Certificate of Reasonable Value (CRV)
an appraisal of property required for a VA mortgage.

Chattel
personal property.

Closing
also known as settlement. The meeting at which the sale of a property is finalized, closing costs and escrow amounts are paid, and the buyer and seller sign documents to transfer ownership of the property.

Closing Agent
a neutral third party, usually an escrow company, title company or attorney, that facilities the closing of a real estate transaction.

Closing Costs
expenses related to obtaining a loan. These normally include an origination fee, taxes, points, escrow payments, insurance, etc.

Cloud on Title
any fact or condition that could negatively impact upon the title of a property.

Commission
a fee paid to a broker or salesperson for facilitating a real estate tranaction. Commissions are usually expressed as a percentage of the loan amount or sale amount.

Comparables
also known as "comps." Properties of similar size, location, and feature that are used as comparisons to determine the value of a specified property.

Conditional Commitment
a lender's promise to issue a loan subject to certain conditions. The loan will not be funded until these conditions have been met.

Conditional Offer
purchase offer in which the buyer proposes to purchase property only after certain events occur, such as the sale of the current home, or obtaining financing.

Conforming Loan
a mortgage that conforms to rules established by Freddie Mac or Fannie Mae.

Construction Loan
short-term financing obtained for construction of a property.