Call Option
A provision in a home loan that gives the mortgagee the right to call the mortgage due and payable at the end of a specified time period for any reason. |
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Cancellation Clause
A contract provision that gives the right to terminate obligations upon the occurrence of specified events. |
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Cap
Refers to a provision of an adjustable rate mortgage (ARM) that limits how much the interest rate or payment can increase or decrease. |
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Capital
A.) The net worth of a business defined by the amount by which its assets exceed its liabilities. B.) Money used to create income. C.) The money or other assets comprising the wealth at the disposal of a person or business enterprise. D.) The accumulated wealth of a business or individual. |
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Capital Expenditures
The cost of an improvement made to extend the useful life of a property or to add to its value. |
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Capital Improvement
Any component constructed as a permanent improvement to real property that increases its value and adds to its useful life. |
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Cash Out Refinance
A refinance loan that provides the borrower with cash that exceeds the amount required to pay off existing mortgages on the home. This additional cash can be used by the borrower for any purpose. |
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Certificate of Deposit (CD)
An instrument, issued by a bank or other financial institution, that is evidence of a type of savings deposit. The document includes the institution?s promise to return the deposit, plus earnings at a specified interest rate within a specified period. |
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Certificate of Deposit index
A rarely used index that is used to determine interest rate changes for certain adjustable-rate mortgages (ARM) plans. |
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Certificate of Eligibility
A document issued by the federal government certifying a veteran?s eligibility for a Department of Veterans Affairs (VA) loan. |
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Certificate of Reasonable Value (CRV)
A document issued by the Department of Veterans Affairs (VA) that establishes the maximum value and loan amount for a VA loan. |
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Certificate of Title
A statement of opinion rendered by a title company or attorney, stating that a title to real property is legally held by the current owner. |
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Chain of Title
A history of all documents, including conveyances and encumbrances, that affect title to a parcel of real property, starting with the earliest existing document and ending with the most recent. |
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Change Frequency
Term sometimes used to describe the frequency of payment or interest rate changes in an adjustable-rate-mortgage (ARM). |
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