cap
A limit placed on the adjustments in an adjustable rate mortgage. This protects the borrower from large increases in the interest rate or payment level. |
Certificate of Deposit, CD
A type of savings account with a specified minimum deposit and term that generally provides higher interest than standard savings accounts. |
Certificate of Eligibility
Issued by the Department of Veterans Affairs as evidence of a veterans eligibility to obtain a VA loan. |
Certificate of Reasonable Value (CVR)
Issued by the Veterans Administration when an appraisal has been performed on a property being bought with a VA loan. |
chain of title
A historical analysis of transfers of a property title and how it came to be vested in the current owner. |
co-borrower
An additional individual whose name is on the title to the property and who is under equal obligation to repay the loan as is the primary borrower. |
collateral
Any real or personal property of marketable value that a borrower pledges as security in order to obtain a loan. Land is the collateral in mortgage transactions. |
collection
When a borrower falls behind on payments, the loan goes into "collection". |
community property
Property acquired by a married couple during the marriage belongs to both of them jointly. (There are exceptions under certain circumstances.) This is a common practice in the southwestern United States. |
condominium hotel
A condo project that has rental or registration desks, short-term occupancy, telephone services, food, and daily cleaning services and is operated as a hotel even though the units are individually owned. These are common in resort areas. |
contingency
A condition that must be met in order for a contract to become legally binding. |
conventional mortgage
A mortgage that is not a government loan. |
convertable ARM
An adjustable-rate mortgage with the option to switch to a fixed-fate mortgage by a specific time. |
cooperative (co-op)
A complex owned by the residents, giving each the right to occupy a specific unit. This is called a cooperative corporation. |
credit repository
An organization that collects and records financial and public records information on the payment history of those being considered for credit. |
