To help you locate a term, enter the first character or two of a term and press the 'Refresh' button. Or, just click on the handy alphabetical index to jump to that section of the glossary.
| Calculate (QAPR) (htm) |
| Compare
correct APR with disclosed APR.
|
| Calculate Button (htm) |
| Click
to analyze all transaction data, apply the calendar math, calculate the
Regulation Z disclosures, prepare amortization schedules, and produce the
results.
|
| Calculate Future Value |
| Indicates whether the future value is being calculated. |
| Calculate Future
Value (htm) |
| Indicates whether the future value is being calculated.
|
| Calculation Method -
Gross Coverage (htm) |
| Select to calculate credit life insurance on the total of
the payments.
|
| Calculation Method -
Net Coverage (htm) |
| Select to calculate credit life insurance on the amount of the
loan.
|
| Calendar (htm) |
| Click to
display the calendar.
|
| Calendar Grid (htm) |
| Select
a day on the selected monthly calendar to enter the corresponding date in the
date field.
|
| call option |
| A provision in the mortgage that gives the mortgagee the right to call the mortgage due and payable at the end of a specified period for whatever reason. |
| Cancel Button (htm) |
| Cancels
entries without saving any changes.
|
| cap |
| A provision of an adjustable-rate mortgage (ARM) that limits the amount of adjustment in the interest rate, payment amount or both on an ARM mortgage. Caps may be applied toeach adjustment period and/or over the life of the loan. Example, a 2/6 would denote a 2%cap on the rate per adjustment period and 6% over the term of the mortgage. See: lifetimepayment cap, periodic payment cap, and periodic rate cap. |
| capital expenditure |
| The cost of an improvement made to extend the useful life of a property or to add to its value. |
| capital improvement |
| Any structure or component erected as a permanent improvement to real property that adds to its value and useful life. |
| cap-lifetime Rate |
| Enter the maximum percentage that the initial interest rate can increase for the life of the loan. |
| cap-payment in $ |
| Enter the maximum dollar amount to which the payment can increase for the life of the loan. |
| cap-payment in % |
| Enter the maximum percentage to which the payment can increase for the life of the loan. |
| caps |
| A set percentage amount by which an adjustable rate mortgage may adjust eachadjustment period. For adjustable loans, caps are usually quoted as two numbers as in 2/6. The first number indicates how much a loan may adjust at each adjustment period while thesecond number indicates how much a loan may adjust over its lifetime. Loans like the 3/1 and 5/1 adjustable which have an initial fixed period are quoted with 3 numbers as in 3/2/6 which would mean that the first adjustment may be as much as 3%,subsequent adjustments are capped at 2% each, and the lifetime cap is 6%. Two-Step loans are quoted with a single cap, which is the amount by which the loan mayadjust at its single adjustment date. |
| Capture (htm) |
| Click to
save the current loan application as an example for future use.
|
| cash-out refinance |
| A refinance transaction in which the amount of money received from the new loan exceedsthe total of the money needed to repay the existing first mortgage, closing costs, points,and the amount required to satisfy any outstanding subordinate mortgage liens. In otherwords, a refinance transaction in which the borrower receives additional cash that can be used for any purpose. |
| ceiling |
| The maximum rate to which an ARM loan could grow. As opposed to a Cap which is the maximum number of points of interest which the rate can increase. |
| Center on page (htm) |
| Select
to center the amortization schedule on the page.
|
| certificate of deposit index |
| An index that is used to determine interest rate changes for certain ARM plans. Itrepresents the weekly average of secondary market interest rates on six-month negotiablecertificates of deposit. See adjustable-rate mortgage (ARM). |
| certificate of eligibility (COE) |
| VA Form 26-8320, the form issued to a named veteran as evidence of eligibility for a VA home loan. |
| 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 mortgage. |
| change frequency - payment |
| The frequency (in months) of payment and/or interest rate changes in an adjustable-rate mortgage (ARM). |
| chattel |
| Another name for personal property. |
| Clear Button (htm) |
| Click
to remove your entries.
|
| closing |
| The conclusion of the transaction. Includes but not limited to the delivery of the deed,signing of mortgage documents, settling the closing costs and the disbursement of funds to the seller and other interested parties. Also called settlement. |
| closing cost item |
| A fee or amount that a home buyer must pay at closing for a single service, tax, or product. Closing costs are made up of individual closing cost items such as origination fees andattorney's fees. Many closing cost items are included as numbered items on the HUD-1statement. |
| closing costs |
| Expenses (over and above the price of the property) incurred by buyers and sellers intransferring ownership of a property. These typically include a loan origination fee, discountpoints, appraisal fee, title search, title insurance, survey, taxes, deed recording fee, andcredit report charges. credit report, attorney, processing, underwriting, taxes, title insurance and survey. Closing CostsFees paid by the borrower when property is purchased or refinanced. Co-borrower |
| Closing Cost's Factor |
| Closing cost's factor. Typically, you can figure 3%. Enter the amount as a whole number, i.e. 3 |
| Closing Date |
| The closing date. |
| Co-Borrower Birthdate |
| The co-borrower’s birthdate. |
| co-borrowers |
| Two or more borrowers obtaining the same mortgage. If a co-borrower is not living in the house he/she would be known as a non-occupying co-borrower. |
| collateral |
| An asset (such as a car or a home) that guarantees the repayment of a loan. The borrower risks losing the asset if the loan is not repaid according to the terms of the loan contract. |
| collection |
| The efforts used to bring a delinquent mortgage current and to file the necessary notices to proceed with foreclosure when necessary. |
| co-maker |
| A person who signs a promissory note along with the borrower. A co-maker's signature guarantees that the loan will be repaid, because the borrower and the co-maker are equally responsible for the repayment. See endorser. |
| combined loan-to-value ratio (CLTV) |
| The principal balance of all mortgages on the property (including second and third liens)divided by the value of the property. |
| commitment letter |
| A formal offer by a lender stating the terms under which it agrees to lend money to a homebuyer. Also known as a "loan commitment. " |
| community property |
| In some states, a form of ownership under which property acquired during a marriage is presumed to be owned jointly unless acquired separately by either spouse. |
| co-mortgagor |
| The person's name appearing on the application with the mortgagor. The co-mortgagor'sincome, assets, and debts are added together with the mortgagor's for underwriting andratio analysis. The co-mortgagor's must appear on the FHA 'Certificate of Commitment', theNote, and the Mortgage Deed of Trust. For full guarantee under the VA's program, the co-mortgagor must be either a spouse or another eligible veteran. |
| component |
| A small binary object or program that performs a specific function and is designed in such away to easily operate with other components and applications. |
| compound interest |
| Interest paid on the original principal balance and on the accrued and unpaid interest. |
| compounding |
| The payment of interest on interest. Compounding is the process of accumulating intereston the amount borrowed when the interest is paid(credited) more frequently then annually. If a loan is due in one year and compounding is annual, compounding will not occur. However, if a loan is due in one year and the compounding is monthly, then at the end of the first month the interest for one month will be added to the principal of the loan and thisamount (principal and interest) will be the amount on which interest will be calculated at the end of the second period. |
| Compounding Periods /
Year (htm) |
| Enter the number of compounding periods per year.
|
| Compounding Periods per Year |
| Enter the number of compounding periods per year. |
| condominium |
| A real estate A form of ownership of real property project in which each unit owner has titleto a unit in a building, an undivided interest in the common areas of the project, andsometimes the exclusive use of certain limited common areas. A condominium generallydefines each unit as a separately owned space to the interior surfaces of the perimeter walls, floors, and ceilings. |
| Confirm Request for
Exit (htm) |
| Select to display a confirmation message when you click Exit. Deselect
to Exit without displaying a confirmation message.
|
| conforming loan |
| A mortgage loan for $240,000 or lower. |
| constant payment to principal (plus interest) loan |
| A loan where the borrower pays a fixed principal amount each period plus the interest accrued for the period. For example $1,000. 00 plus interest per month. |
| construction loan |
| An interim loan secured by real estate to fund the cost of construction. Draws are made on the construction account as work progresses. |
