A clause in a mortgage which permits the lending institution to demand payment of the impressive balance at a specific time.

CAP. Associated with Adjustable Rate Mortgages. A limitation on how high month-to-month payments or how much rates of interest might change within a particular 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 products and money which is frequently used to create extra income.

CAPITAL INVESTMENT. An investment of funds developed to improve the income-producing abilities of an asset or to extend its economic life.

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

CAULKING. A pliable 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 accountable for confirming any and all claims by the seller of residential or commercial property.

CERTIFICATE OF DEPOSIT. A document showing that the bearer has a specific amount of money, at a specific amount interest, on deposit with a banks.

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

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

CERTIFICATE OF OCCUPANCY. Issued by a proper jurisdictional entity, this file accredits that a building adhere to 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 specific residential or commercial property establishes the maximum amount which can be secured by a VA mortgage.

CERTIFICATE OF TITLE. A document designating the legal owner of a parcel of genuine estate. Usually provided by a title or abstract company.

CERTIFIED GENERAL APPRAISER. Generally, any professional who has actually fulfilled the local or state requirements, and passed the appropriate certification test, and can appraising any kind of residential or commercial property.

CERTIFIED RESIDENTIAL APPRAISER. A sub-classification of appraiser who is only certified to assess house, normally as much as four units.

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 connected to or an essential part of a residential or commercial property. Chattel is not typically considered when evaluating the value of real residential or commercial property.

BREAKER. 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 procedure created to induce cramping in a home purchaser's hands by requiring signature on many pieces of paperwork that no one has actually ever checked out. Or, the procedure whereby the sale of a residential or commercial property is consummated with the buyer completing all relevant paperwork, including signing the mortgage commitment and paying all appropriate costs associated with the sale (CLOSING COSTS).

CLOSING COSTS. All proper expenses produced by the sale of residential or commercial property which the parties should pay to complete the transaction. Costs might include appraisal fees, origination charges, title insurance coverage, taxes and any points negotiated in the deal.

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

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

COLLATERAL. An asset which is positioned at threat 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 again. Includes documentation that may be used in foreclosure.

CO-MAKER. A second party who signs a loan, in addition to the borrower, and becomes liable for the debt needs to the debtor default.

COMMON LAW. As opposed to statute law. Laws that have actually been established by customized, usage and courts over several years.

COMMISSION. A percentage of the prices or a fixed fee worked out by an agent to make up for the effort used up to offer or purchase 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 shown other tenets or owners. Commonly discovered in condominium, PUD or office.

COMMON AREAS. Any locations, such as entranceways, foyers, pools, recreational facilities 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 spaces.

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

COMPARABLES. A shortened term utilized by appraisers to describe residential or commercial properties which are comparable in size, condition, place and facilities to a subject residential or commercial property who's worth is being determined. The Uniform Standards of Professional Appraisal Practice (USPAP) develop clear standards for determining an equivalent residential or commercial property.

COMPOUND INTEREST. Interest paid on the principal quantity, in addition to any built up interest.

CONCESSIONS. Additional worth granted by a purchaser or seller to entice another party to finish an offer.

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 transition of water vapor to liquid. Typically kinds in locations of high humidity.

CONDOMINIUM. A development where specific units are owned, however typical locations and amenities are shared similarly by all owners.

CONDOMINIUM CONVERSION. Commonly, the conversion of a rental residential or commercial property such as a home complex into a CONDOMINIUM-style complex where each unit is owned rather than rented.

CONDOTEL:. Are Condo-hotels generally situated in touristy locations or buildings including both condominiums and hotel rooms. Condotels normally provide ownership in a vacation-style condominiums that supply onsite rental management. Often owners of condotels are limited to a specific variety of days of use and therefore not ideal for primary home.

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

CONSTRUCTION LOAN. A loan made to a home builder or homeowner that funds the preliminary building and construction of a residential or commercial property, but is changed by a traditional mortgage one the residential or commercial property is finished.

CONTIGUOUS. Connected to or touching along an unbroken limit.

CONTINGENCY. Something that should take place before something else occurs. Often used in real estate sales when a purchaser need to sell an existing home before buying a brand-new one. Or, when a buyer makes an offer the requires a complete home examination before it becomes official.

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

CONVENTIONAL MORTGAGE. A traditional, realty funding mechanism that is not backed by any government or other agency (FHA, VA, and so on).

CONVERTIBLE ARM. A mortgage that begins as and adjustable, that permits the debtor to transform the loan to a set rate within a particular timeframe.

COOPERATIVE (CO-OP). A kind of ownership where each resident 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 unit within the structure.

CORPORATE RELOCATION. A situation where an individual's company pays all or a few of the expenses related to moving from one place to another, typically over a substantial range. Relocation costs typically consist of the amounts, such as brokerage charges, sustained in the selling and buying of the staff member's primary residence.

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

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

CREDIT. A loan of cash for the purchase of residential or commercial property, genuine or individual. Credit is either protected 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 worthiness of individuals.

CREDITOR. An individual to whom cash 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 figure out credit value of people.

. Large companies that collect and save monetary and credit details about individuals who request credit.

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

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

DEBT. A commitment to repay some amount owed. This may or might 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 computed at the fair-market worth of the home, less any outstanding mortgage financial obligation.

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

DEED-IN-LIEU (OF FORECLOSURE). A file provided by a customer to a loan provider, moving title of the residential or commercial property. Often used to avoid credit-damaging foreclosure treatments.

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

DEED OF RECONVEYANCE A document which transfers ownership of a residential or commercial property from a Trustee back to a borrower who has fulfilled the obligations 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 give up any claim an individual needs to a residential or commercial property.

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

DELINQUENCY. The state in which a borrow has failed to satisfy payment obligations on time.

DEPOSIT. Cash offered along with an offer to purchase residential or commercial property, Also called EARNEST MONEY.

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

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

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