Fairway Asset Corporation - MORTGAGE DICTIONARY

Morgage Dictionary

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There are currently 18 names in this directory beginning with the letter C.
Capital Gain
A profit gained on asset such as home or property.

Cash-out Refinance
A second mortgage in which the borrower takes out money from the home equity at the same time a refinance deal is made; an alternative to a home equity loan.

Certificate of Reasonable Value (CRV)
An appraisal issued by the Veterans Administration to determine the value of a property. The loan amount may not exceed the CRV on a VA loan.

The final step in a loan process where the buyer, seller and lender or their agents come together and legally change hands. This is the formal documented sale of a home and/or property where all documents are signed, and the payment of required closing fees are exchanged. Also called settlement.

Closing Agent
Person responsible for mediating the closing, documenting the process and assuring all associated paperwork is completed.

Closing Costs
The amount of money payable by the buyer and seller required to close the loan. These can include but are not limited to: appraisal fee, attorney's fees, credit report charge, documentation fees, escrow, recording fees, taxes, title fees, etc. Most closing costs must be paid out-of-pocket at closing unless agreed otherwise.

Closing Statement
A comprehensive itemized list of closing costs for both the buyer and the seller. Also called an HUD-1.

Personal property or any asset that a borrower offers to a lender in order to secure a loan. Lenders refer to collateral loans as secured loans because the asset secures the funding.

Combined Loan-to-Value Ratio (CLTV)
An overall mortgage debt loan expressed as a percentage of the borrower's home fair market value.

Combo Loan
A type of loan that combines an initial loan typically for new home construction, with a second conventional home loan that supplants the first.

An agreement between a lender and a borrower to loan money at a future date subject to the completion of paperwork or compliance with stated conditions.

Comparable sales, Comps
Similar home sale prices in the region used as a metric in the calculation of a home's appraised value.

Conforming Loan
A loan that meets Fannie Mae and Freddie Mac guidelines, which also falls under a certain loan amount, often referred to as a conventional loan

Construction Loan
Short-term loan for new home construction. Given to a builder during intervals of the building process which is due upon completion of the project.

A possible event that may occur in the future. If conditions of the contingency written on the contract are not met, you can back out of the transaction and keep your earnest money.

Conventional Loan
Any loan which is not insured by the FHA or guaranteed by the VA or FmHA. Just a plain vanilla home loan that is ideal for borrowers with good/excellent credit.

Credit Report
Summary of all borrower's debts.

Credit Score
A three digit number that represents a person's creditworthiness. The three major credit bureaus: Experian, Equifax, and Transunion have proprietary algorithms to determine these three-digit numbers. Lenders use the middle score out of the three for qualification.