-C- Mortgage Terms Glossary

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Mortgage Terms Glossary

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-C-

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.
Conventional Loan: a loan not guaranteed or insured by a government entitity, such as the VA or FHA.
Convertible ARMs: an adjustable-rate mortgage that may be converted to a fixed-rate mortgage, subject to certain conditions specified in the mortgage note.
Credit Report: a report obtained by a lender, usually from one of three major reporting bureaus, for the purpose of determining a borrower's history of debt repayment. Borrowers may examine their own credit reports, although they may have to pay a fee unless denied for credit recently.