A provision in a mortgage which allows the lender to require payment of the outstanding balance at a specific time.

CAP.
Connected With Adjustable Rate Mortgages. A limitation on how high month-to-month payments or how much rate of interest may change within a specific time period or the life of the mortgage.

CAPE COD COLONIAL.
A single-story house design made popular in New England. Often characterized by a steep roofing system with gables.

CAPITAL.
Accumulated goods and money which is most frequently utilized to generate extra income.

CAPITAL INVESTMENT.
An expense of funds created to improve the income-producing abilities of a possession or to extend its financial life.

CASH-OUT REFINANCE.
Refinancing a mortgage at a higher amount than the present balance in order to change a part of the equity into money.

CAULKING.
A flexible material utilized to seal fractures or openings such as around windows.

CAVEAT EMPTOR.
Literally equated: "Let the buyer beware." A common company tenet whereby the purchaser is responsible for verifying any and all claims by the seller of residential or commercial property.

CERTIFICATE OF DEPOSIT.
A file revealing that the bearer has a certain quantity of cash, at a particular amount interest, on deposit with a monetary institution.

CERTIFICATE OF DEPOSIT INDEX.
An index based upon the rates of interest of 6 month CD's. Used to set rate of interest on some Adjustable Rate Mortgages.

CERTIFICATE OF ELIGIBILITY.
A file issued by the Veterans Administration that accredits eligibility for a VA loan.

CERTIFICATE OF OCCUPANCY.
Issued by a proper jurisdictional entity, this file licenses that a structure complies with all building regulations and is safe for use or habitation.

CERTIFICATE OF REASONABLE VALUE (CRV).
Usually based upon an independent appraisal, a CRV for a particular residential or commercial property establishes the optimum quantity which can be secured by a VA mortgage.

CERTIFICATE OF TITLE.
A file designating the legal owner of a parcel of realty. Usually provided by a title or abstract company.

CERTIFIED GENERAL APPRAISER.
Generally, any expert who has met the regional or state requirements, and passed the appropriate accreditation examination, and can evaluating any kind of residential or commercial property.

CERTIFIED RESIDENTIAL APPRAISER.
A sub-classification of appraiser who is just certified to evaluate house, typically approximately 4 systems.

CHAIN OF TITLE.
The total history of ownership of a piece of residential or commercial property.

CHATTEL.
Any personal residential or commercial property which is not connected to or an integral part of a residential or commercial property. Chattel is not frequently thought about when evaluating the worth of real residential or commercial property.

BREAKER.
Electrical gadgets which immediately open electrical circuits if they are strained.

CLEAR TITLE.
Ownership of residential or commercial property that is not overloaded by any counter-claim or lien.

CLOSING.
An excruciating procedure developed to induce cramping in a home buyer's hands by needing signature on countless pieces of paperwork that nobody has actually ever read. Or, the process where the sale of a residential or commercial property is consummated with the buyer finishing all suitable documents, including signing the mortgage responsibility and paying all appropriate expenses associated with the sale (CLOSING COSTS).

CLOSING COSTS.
All suitable costs generated by the sale of residential or commercial property which the parties need to pay to complete the transaction. Costs might consist of appraisal charges, origination charges, title insurance coverage, taxes and any points negotiated in the offer.

CLOSING STATEMENT.
The document detailing the last financial arrangement between a buyer and seller and the costs paid by each.

CO-BORROWER.
A 2nd person sharing responsibility on the loan and title on the residential or commercial property.

COLLATERAL.
A property which is positioned at danger to protect the repayment of a loan.

COLLECTION.
The procedure a loan provider takes to pursue a customer who is delinquent on his payments in order to bring the mortgage existing once again. Includes documentation that might be utilized in foreclosure.

CO-MAKER.
A second party who signs a loan, together with the borrower, and ends up being accountable for the financial obligation needs to the borrower default.

COMMON LAW.
Rather than statute law. Laws that have been established by customized, use and courts over several years.

COMMISSION.
A percentage of the prices or a fixed fee negotiated by a representative to make up for the effort expended to offer or acquire residential or commercial property.

COMMON AREA ASSESSMENTS.
Fees which are credited the tenets or owners of residential or commercial properties to cover the costs of maintaining areas shared with other tenets or owners. Commonly discovered in condo, PUD or office spaces.

COMMON AREAS.
Any areas, such as entranceways, foyers, pools, leisure centers or the like, which are shared by the tenets or owners of residential or commercial property near by. Commonly found in condo, PUD or office.

COMMUNITY RESIDENTIAL OR COMMERCIAL PROPERTY.
In many jurisdictions, any residential or commercial property which has actually been acquired by a couple. The ownership of the residential or commercial property is thought about equal unless stipulated otherwise by both celebrations.

COMPARABLES.
A shortened term used by appraisers to describe residential or commercial properties which are similar in size, condition, location and features to a subject residential or commercial property who's value is being figured out. The Uniform Standards of Professional Appraisal Practice (USPAP) develop clear guidelines for identifying an equivalent residential or commercial property.

COMPOUND INTEREST.
Interest paid on the primary quantity, as well as any collected interest.

CONCESSIONS.
Additional value given by a buyer or seller to entice another celebration to complete a deal.

CONDEMNATION.
The main process by which a residential or commercial property is considered to be uninhabitable or unusable due to internal damage or other external conditions.

CONDENSATION.
The transition of water vapor to liquid. Typically forms in locations of high humidity.

CONDOMINIUM.
A development where private units are owned, but common areas and features are shared equally by all owners.

CONDOMINIUM CONVERSION.
Commonly, the conversion of a rental residential or commercial property such as a house complex into a CONDOMINIUM-style complex where each system is owned instead of leased.

CONDOTEL:.
Are Condo-hotels generally located in touristy areas or structures consisting of both condominiums and hotel rooms. Condotels normally provide ownership in a vacation-style condominiums that provide onsite rental management. Often owners of condotels are restricted to a particular number of days of use and hence not ideal for primary residence.

CONDUIT.
The pipeline through which electrical wiring is run.

CONSTRUCTION LOAN.
A loan made to a contractor or homeowner that funds the initial construction of a residential or commercial property, but is replaced by a standard mortgage one the residential or commercial property is completed.

CONTIGUOUS.
Connected to or touching along an unbroken boundary.

CONTINGENCY.
Something that needs to happen before something else takes place. Often used in property sales when a purchaser must sell a current home before buying a brand-new one. Or, when a purchaser makes a deal the needs a total home evaluation before it becomes official.

CONTRACT.
A legally binding contract, oral or written, between two parties.

CONVENTIONAL MORTGAGE.
A standard, genuine estate funding mechanism that is not backed by any government or other agency (FHA, VA, etc).

CONVERTIBLE ARM.
A mortgage that starts as and adjustable, that enables the borrower to transform the loan to a fixed rate within a particular timeframe.

COOPERATIVE (CO-OP).
A kind of ownership where each citizen of a multiunit residential or commercial property owns a share in a cooperative corporation that owns the structure. With each resident having rights to a specific system within the building.

CORPORATE RELOCATION.
A scenario where an individual's company pays all or some of the costs associated with moving from one place to another, typically over a considerable distance. Relocation expenses typically consist of the amounts, such as brokerage costs, incurred in the selling and purchasing of the staff member's main residence.

COST OF FUNDS INDEX (COFI).
An index of banks expenses utilized to set interest rates for some Adjustable Rate Mortgages.

COVENANT.
A terms in any mortgage that, if not satisfied, can be trigger for the loan provider to foreclose.

CREDIT.
A loan of money for the purchase of residential or commercial property, real or individual. Credit is either secured by an asset, such as a home, or unsecured.

CREDIT REPORT.
A record of debt payments, previous and present. Used by mortgage loan providers in determining credit worthiness of individuals.

CREDITOR.
An individual to whom money is owed.

CREDIT REPORT.
A comprehensive report of a people credit, work and home history prepared by a credit bureau. Used by loan providers to identify credit value of people.

CREDIT REPOSITORY.
Large business that gather and keep monetary and credit information about individuals who make an application for credit.

CUL-DE-SAC.
A dead-end street. One with just one entrance/exit.

DATE OF APPRAISAL.
The specific point in time as of which an appraiser designates the worth of a home. Often specified as the date of inspection.

DEBT.
An obligation to pay back some amount owed. This may or may not be financial.

DEBT EQUITY RATIO.
The ratio of the amount a mortgagor still owes on a residential or commercial property to the amount of equity they have in the home. Equity is calculated at the fair-market value of the home, less any impressive mortgage financial obligation.

DEED.
A document indicating the ownership of a residential or commercial property.

DEED-IN-LIEU (OF FORECLOSURE).
A document provided by a debtor to a lender, moving title of the residential or commercial property. Often utilized to prevent credit-damaging foreclosure procedures.

DEED OF TRUST
A document which moves title in a residential or commercial property to a trustee, who's responsibilities and powers are specified. Often used in mortgage deals.

DEED OF RECONVEYANCE
A document which moves ownership of a residential or commercial property from a Trustee back to a debtor who has satisfied the commitments of a mortgage.

DEED OF RELEASE
A file which dismisses a lien or other claim on a residential or commercial property.

DEED OF SURRENDER
A file utilized to give up any claim a person needs to a residential or commercial property.

DEFAULT.
The condition in which a customer has actually stopped working to fulfill the responsibilities of a loan or mortgage.

DELINQUENCY.
The state in which a borrow has stopped working to satisfy payment responsibilities on time.

DEPOSIT.
Cash given along with a deal to acquire residential or commercial property, Also called down payment.

DEPRECIATION.
The natural decrease in residential or commercial property worth due to market forces or exhaustion of resources.

DETACHED SINGLE-FAMILY HOME.
A single building improvement intended to serve as a home for one family.

DISCOUNT POINTS.
Points paid in addition to the loan origination charge to get a lower interest rate. One point is equivalent to one percent of the loan quantity.