A stipulation in a mortgage which allows the loan provider to demand payment of the exceptional balance at a particular time.

CAP.
Associated with Adjustable Rate Mortgages. A limitation on how high monthly payments or how much rates of interest may alter within a particular time period or the life of the mortgage.

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

CAPITAL.
Accumulated items and cash which is frequently utilized to create extra earnings.

CAPITAL EXPENDITURE.
An outlay of funds created to enhance the income-producing abilities of a possession or to extend its economic life.

CASH-OUT REFINANCE.
Refinancing a mortgage at a greater quantity than the present balance in order to change a portion of the equity into cash.

CAULKING.
A pliable product utilized to seal cracks or openings such as around windows.

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

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

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

CERTIFICATE OF ELIGIBILITY.
A document provided by the Veterans Administration that certifies eligibility for a VA loan.

CERTIFICATE OF OCCUPANCY.
Issued by an appropriate jurisdictional entity, this file accredits that a building abide by all structure codes 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 maximum quantity which can be protected by a VA mortgage.

CERTIFICATE OF TITLE.
A file designating the legal owner of a parcel of genuine estate. Usually supplied by a title or abstract business.

CERTIFIED GENERAL APPRAISER.
Generally, any specialist who has met the regional or state requirements, and passed the appropriate certification examination, and is capable of assessing any kind of residential or commercial property.

CERTIFIED RESIDENTIAL APPRAISER.
A sub-classification of appraiser who is just certified to evaluate domestic home, normally approximately four units.

CHAIN OF TITLE.
The complete 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 typically thought about when assessing the value of real residential or commercial property.

CIRCUIT BREAKERS.
Electrical gadgets which automatically open electrical circuits if they are overwhelmed.

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

CLOSING.
An excruciating procedure developed to induce cramping in a home buyer's hands by needing signature on numerous pieces of documents that no one has actually ever read. Or, the process where the sale of a residential or commercial property is consummated with the purchaser completing all suitable documentation, consisting of signing the mortgage obligation and paying all suitable expenses connected with the sale (CLOSING COSTS).

CLOSING COSTS.
All suitable costs created by the sale of residential or commercial property which the celebrations should pay to complete the deal. Costs might include appraisal fees, origination fees, title insurance, taxes and any points negotiated in the offer.

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

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

COLLATERAL.
An asset which is put at risk to secure the payment of a loan.

COLLECTION.
The procedure a lending institution takes to pursue a debtor who is delinquent on his payments in order to bring the mortgage current again. Includes paperwork that may be used in foreclosure.

CO-MAKER.
A 2nd celebration who signs a loan, along with the borrower, and becomes accountable for the debt ought to the debtor default.

COMMON LAW.
Instead of statute law. Laws that have been developed by customized, use and courts over numerous years.

COMMISSION.
A percentage of the list prices or a fixed fee worked out by an agent to compensate for the effort expended to offer or acquire residential or commercial property.

COMMON AREA ASSESSMENTS.
Fees which are charged to the tenets or owners of residential or commercial properties to cover the expenses of preserving areas shared with other tenets or owners. Commonly discovered in condo, PUD or workplace spaces.

COMMON AREAS.
Any areas, such as entryways, foyers, swimming 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 workplace.

COMMUNITY RESIDENTIAL OR COMMERCIAL PROPERTY.
In lots of jurisdictions, any residential or commercial property which has actually been acquired by a married couple. The ownership of the residential or commercial property is considered equivalent unless specified otherwise by both parties.

COMPARABLES.
An abbreviated term utilized by appraisers to describe residential or commercial properties which are similar in size, condition, place and features to a subject residential or commercial property who's value is being identified. The Uniform Standards of Professional Appraisal Practice (USPAP) establish clear standards for determining a comparable residential or commercial property.

COMPOUND INTEREST.
Interest paid on the primary quantity, along with any built up interest.

CONCESSIONS.
Additional worth granted by a buyer or seller to lure another celebration to complete a deal.

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

CONDENSATION.
The shift of water vapor to liquid. Typically kinds in locations of high humidity.

CONDOMINIUM.
An advancement where private systems are owned, however typical locations and amenities are shared equally by all owners.

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

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

CONDUIT.
The pipe through which electrical electrical wiring is run.

CONSTRUCTION LOAN.
A loan made to a home builder or resident that funds the initial construction of a residential or commercial property, but is replaced by a traditional mortgage one the residential or commercial property is finished.

CONTIGUOUS.
Connected to or touching along an unbroken boundary.

CONTINGENCY.
Something that should take place before something else occurs. Often utilized in genuine estate sales when a buyer need to offer a current home before acquiring a new one. Or, when a purchaser makes a deal the needs a total home assessment before it becomes official.

CONTRACT.
A lawfully binding arrangement, oral or composed, in between 2 celebrations.

CONVENTIONAL MORTGAGE.
A conventional, property funding system that is not backed by any government or other agency (FHA, VA, etc).

CONVERTIBLE ARM.
A mortgage that starts as and adjustable, that permits the borrower to convert the loan to a set rate within a particular timeframe.

COOPERATIVE (CO-OP).
A form 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 a person's employer pays all or some of the costs connected with moving from one place to another, generally over a substantial range. Relocation costs typically include the quantities, such as brokerage fees, incurred in the selling and purchasing of the employee's primary house.

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

COVENANT.
A specification in any mortgage that, if not satisfied, can be cause for the lender to foreclose.

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

CREDIT HISTORY.
A record of debt payments, past and present. Used by mortgage loan providers in determining credit merit of people.

CREDITOR.
An individual to whom money is owed.

CREDIT REPORT.
A detailed report of an individuals credit, employment and house history prepared by a credit bureau. Used by lending institutions to identify credit worthiness of individuals.

CREDIT REPOSITORY.
Large companies that collect and save financial and credit details about individuals who look for credit.

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

DATE OF APPRAISAL.
The particular moment as of which an appraiser designates the value of a home. Often stated as the date of examination.

DEBT.
A responsibility to repay some amount owed. This might or may not be monetary.

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

DEED.
A file suggesting the ownership of a residential or commercial property.

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

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

DEED OF RECONVEYANCE
A document which transfers ownership of a residential or commercial property from a Trustee back to a customer who has actually satisfied the responsibilities of a mortgage.

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

DEED OF SURRENDER
A file utilized to surrender any claim an individual needs to a residential or commercial property.

DEFAULT.
The condition in which a customer has actually failed to meet the commitments of a loan or mortgage.

DELINQUENCY.
The state in which an obtain has actually failed to meet payment obligations on time.

DEPOSIT.
Cash provided in addition to a deal to purchase residential or commercial property, Also called EARNEST MONEY.

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

DETACHED SINGLE-FAMILY HOME.
A single structure enhancement intended to act as a home for one household.

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