Glossary of terms used on this site
There are 105 entries in this glossary.C
| Term | Definition |
|---|---|
| Cap |
The maximum amount an interest rate or monthly payment can change, either at established intervals and/or over the life of the mortgage. |
| Certificate of Eligibility |
A document issued by the Department of Veterans Affairs showing that a specific veteran may apply for a VA-guaranteed mortgage |
| Certificate of Reasonable Value |
The name for the appraisal used for a VA-guaranteed mortgage. |
| Closing |
The day when buyers and sellers sign the documents and exchange money for the title to the home. The agreements made in the sales agreement are finalized at closing. |
| Closing Costs |
Costs of the purchase, separate from the down payment, associated with closing a property sale. Closing costs are typically grouped into two categories, non-recurring costs and recurring costs. Non-recurring costs are associated with the purchase of the property such as loan costs, title fees, escrow fees, taxes, home inspection fees, and recording fees. Recurring costs are paid at the close of escrow and also throughout the time you own the property. Interest, property taxes, homeowners insurance and mortgage insurance are recurring costs. |
| Commitment Letter |
A written pledge or promise from a lender that describes the terms of a mortgage loan that is being offered. |
| Condominium |
A system of ownership of individual units in a multi-unit structure, combined with joint ownership of common areas (e.g. sidewalks, hallways, stairs, etc.). |
| Conforming Loan |
A loan that follows the Fannie Mae or Freddie Mac guidelines for sale in the secondary market.Loan amounts of $417,000 and below. |
| Contingency |
Wording in a contract that makes it unenforceable if specified conditions are not met. Common examples are clauses that state that the buyer is not obligated to buy property until and unless he or she is able to sell currently owned property, or that the buyer is not obligated to buy property if he or she is unable to get a mortgage loan for a certain amount. |
| Conventional Loan |
A loan that is not back by the federal government in the form of insuring (FHA) or guaranteeing (VA). |