1 Glossary of Terms
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A clause in a mortgage which allows the lender to require payment of the impressive balance at a particular time.

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

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

CAPITAL. Accumulated items and cash which is usually used to generate additional income.

CAPITAL EXPENDITURE. An investment of funds created to improve the income-producing capabilities of a property or to extend its economic life.

CASH-OUT REFINANCE. Refinancing a mortgage at a higher amount than the current balance in order to change a portion of the equity into cash.

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

CAVEAT EMPTOR. Literally translated: "Let the purchaser beware." A common business tenet whereby the buyer is accountable for validating any and all claims by the seller of residential or commercial property.

CERTIFICATE OF DEPOSIT. A file showing that the bearer has a specific quantity of money, at a specific quantity interest, on deposit with a monetary organization.

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

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

CERTIFICATE OF OCCUPANCY. Issued by a suitable jurisdictional entity, this file accredits that a structure adhere to all building regulations and is safe for use or habitation.

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

CERTIFICATE OF TITLE. A document designating the legal owner of a parcel of property. Usually supplied by a title or abstract company.

CERTIFIED GENERAL APPRAISER. Generally, any expert who has actually satisfied the regional or state requirements, and passed the suitable accreditation examination, and can appraising any type of residential or commercial property.

CERTIFIED RESIDENTIAL APPRAISER. A sub-classification of appraiser who is only licensed to assess residential property, typically up to 4 systems.

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

CHATTEL. Any individual residential or commercial property which is not attached to or an integral part of a residential or commercial property. Chattel is not typically taken into account when evaluating the value of genuine residential or commercial property.

CIRCUIT BREAKERS. Electrical gadgets which instantly open electrical circuits if they are strained.

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

CLOSING. An excruciating process designed to induce cramping in a home buyer's hands by requiring signature on countless pieces of documents that nobody has ever checked out. Or, the process where the sale of a residential or commercial property is consummated with the buyer finishing all applicable documentation, consisting of signing the mortgage commitment and paying all proper expenses associated with the sale (CLOSING COSTS).

CLOSING COSTS. All proper expenses generated by the sale of residential or commercial property which the parties must pay to finish the deal. Costs may include appraisal costs, origination charges, title insurance, taxes and any points worked out in the deal.

CLOSING STATEMENT. The file detailing the last monetary plan in between a buyer and seller and the expenses paid by each.

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

COLLATERAL. An asset which is placed at risk to secure the repayment of a loan.

COLLECTION. The procedure a loan provider requires to pursue a debtor who is overdue on his payments in order to bring the mortgage current once again. Includes documentation that might be used in foreclosure.

CO-MAKER. A second celebration who signs a loan, together with the customer, and ends up being responsible for the financial obligation ought to the debtor default.

COMMON LAW. Instead of statute law. Laws that have actually been established by custom-made, usage and courts over several years.

COMMISSION. A portion of the prices or a repaired cost worked out by an agent to make up for the effort used up 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 keeping locations shared with other tenets or owners. Commonly discovered in condominium, PUD or office.

COMMON AREAS. Any locations, such as entranceways, foyers, swimming pools, leisure facilities or the like, which are shared by the tenets or owners of residential or commercial property near by. Commonly discovered in condominium, PUD or workplace.

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

COMPARABLES. An abbreviated term utilized by appraisers to describe residential or commercial properties which are comparable in size, condition, area and facilities to a subject residential or commercial property who's worth 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 principal amount, as well as any accumulated interest.

CONCESSIONS. Additional value granted by a buyer or seller to lure another celebration to complete an offer.

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 kinds in locations of high humidity.

CONDOMINIUM. An advancement where private systems are owned, however common areas and facilities are shared similarly 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 system is owned rather than leased.

CONDOTEL:. Are Condo-hotels generally situated in touristy areas or structures consisting of both condominiums and hotel rooms. Condotels usually supply ownership in a vacation-style condos that offer onsite rental management. Often owners of condotels are restricted to a certain variety of days of use and thus not appropriate for primary residence.

CONDUIT. The pipe through which electrical circuitry is run.

CONSTRUCTION LOAN. A loan made to a home builder or property owner that finances the initial construction of a residential or commercial property, but is replaced by a conventional mortgage one the residential or commercial property is completed.

CONTIGUOUS. Connected to or touching along an unbroken boundary.

CONTINGENCY. Something that needs to occur before something else takes place. Often used in realty sales when a buyer need to sell an existing home before acquiring a brand-new one. Or, when a buyer makes an offer the needs a complete home inspection before it becomes main.

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

CONVENTIONAL MORTGAGE. A standard, realty funding system that is not backed by any federal government or other firm (FHA, VA, and so on).

CONVERTIBLE ARM. A mortgage that starts as and adjustable, that permits the customer to convert the loan to a set rate within a specific 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 building. With each resident having rights to a specific system within the building.

CORPORATE RELOCATION. A scenario where a person's employer pays all or a few of the costs associated with moving from one location to another, typically over a substantial distance. Relocation costs often include the quantities, such as brokerage charges, incurred in the selling and purchasing of the employee's main residence.

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

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

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

CREDIT RATING. A record of debt payments, previous and present. Used by mortgage loan providers in identifying credit merit of people.

CREDITOR. An individual to whom money is owed.

CREDIT REPORT. A comprehensive report of a people credit, work and residence history prepared by a . Used by lending institutions to determine credit value of individuals.

CREDIT REPOSITORY. Large companies that gather and store monetary and credit info about individuals who look for credit.

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

DATE OF APPRAISAL. The specific time since which an appraiser designates the worth of a home. Often stated as the date of evaluation.

DEBT. A responsibility to pay back some quantity owed. This may 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 amount of equity they have in the home. Equity is calculated at the fair-market worth of the home, less any impressive mortgage debt.

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

DEED-IN-LIEU (OF FORECLOSURE). A file given by a customer to a loan provider, 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 responsibilities and powers are specified. Often used in mortgage transactions.

DEED OF RECONVEYANCE A file which moves ownership of a residential or commercial property from a Trustee back to a customer who has fulfilled the commitments 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 used to surrender any claim a person has to a residential or commercial property.

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

DELINQUENCY. The state in which an obtain has failed to fulfill payment commitments on time.

DEPOSIT. Cash offered together with an offer to buy residential or commercial property, Also called down payment.

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

DETACHED SINGLE-FAMILY HOME. A single structure improvement meant to work as a home for one household.

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