Page 1
Call Option - Co-Signer

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Collateral - Contract

Page 3
Credit History - Curb Appeal

Call Option
Cancellation Clause
Cap
Capital
Capital Expenditure
Capital Gains
Capital Gains Tax
Capital Improvement
Capital Loss
Capitalization
Capitalization Rate
Cash Flow
Cash-Out Refinance
Caveat Emptor
CC&Rs
Certificate of Eligibility
Certificate of Occupancy
Certificate of Title
Chain of Title
Chapter 7 Bankruptcy
Chapter 11 Bankruptcy
Chapter 13 Bankruptcy
Charge-Off
Chattel
Chattel Mortgage
Clear Title
Closed Account Fee
Closing
Closing Costs
Closing Statement
Cloud on Title
CLTV
Co-Signer

Call Option
A provision in the mortgage contract or documents giving the lender or mortgagee the right to call the mortgage due and payable if any part of the loan agreement was breached or if the mortgage term expires.

Cancellation Clause
A clause in the contract that delineates under what conditions a buyer can cancel the contract.

Cap
Limits the maximum interest rate an interest rate can rise during a single period of time. The "cap" is indicated with the terms of the loan.

Capital
Money used to make more money. For example: Putting a down payment on an investment property that produces cash flow -- the down payment would be considered the capital.

Capital Expenditure
The cost of making an improvement to a property whether it is an addition or a remodel.

Capital Gains
The profit an owner makes when selling property.

Capital Gains Tax
A tax on the profits from the sale of a property.

Capital Improvement
Any structure or improvement made to a proeprty adding to its value.

Capital Loss
Occurs when an individual pays over what htey are able to sell an item for. creating a new loss.

Capitalization
A method of estimating the value of a real estate investment using its potential cash flow, rate of return, and net operating income (NOI).

Capitalization Rate
Estimated, calculated percentage rate of return for a poeprty bsed on the initial investment.

Cash Flow
The money an investment produces after subtracting expenses.

Cash-Out Refinance
A transaction where the borrower obtains a new mortgage on a property already owned with a higher loan amount than the original loan amount, resulting in taking equity or cash out of the property.

Caveat Emptor
Literally translates to "let the buyer beware." The buyer makes his or her own inspections of the property before the purchase of the property.

CC&Rs
An abbreviation for "Covenants, Conditions, and Restrictions."

Certificate of Eligibility
A document verifying the borrower is eligible for a loan approved by the Veteran's Administration.

Certificate of Occupancy
A document issued by local government confirming that a property meets occupancy standards and lies in compliance of building and public health codes.

Certificate of Title
An opinion of a property's title by an attorney.

Chain of Title
The record of the history of a property, from the moment it was constructed to today. This record reflects all owners from then to now.

Chapter 7 Bankrtupcy
A type of bankruptcy that rids the debtor of all unsecured debts and attempts to pay secured debts off to its highest ability. This type can be used by both individuals and businesses, but appears far worse on an individual's credit and takes the longest amoutn of time to recover from.

Chapter 11 Bankruptcy
A type of bankruptcy allowing for borowers or small businesses with a steady income to set up an installment program to delay and reduce the amount of payment to creditors. The installment payments will eventually fully repay the debt within a certain period of time.

Chapter 13 Bankruptcy
A type of bankruptcy focused more on larger businesses but is very similar in how it works as the Chapter 13 bankruptcy but with many more requirements to overcome.

Charge-Off
A creditor records a lien on a borower's credit report after the creditor determines that it would be impossible to receive full repayment of the loan or credit. Creditors generally wait a period of time before declaring this on an individual's credit but when recorded this seriously negatively affects the credit score.

Chattel
Personal proeprty that can and may be removed upon sale.

Chattel Mortgage
A loan using personal property as collateral.

Clear Title
Ownership of a property that is free of claims, liens, or disputed debts. Clear title is required in order for properties to be sold or transferred, unless it is being sold in foreclosure or probate.

Closed Account Fee
A fee charged if an account is closed before a certain period of time. The period of time is determined by the account's terms and conditions.

Closing
The final step where the sale of a property is completed. The final closing occurs when the transfer of title has been recorded with city or county records.

Closing Costs
Expenses incurred during the sale or purchase of a property. Closing costs include: title fees, broker fees, transfer fees, pre-paid items, and more. To read more about closing costs, please visit the Mortgage section of our Library.

Closing Statement
(aka HUD-1) A form disclosing all costs, breaking down the closing costs line by line in detail. The buyer and seller receive this document at the completion or close of the sale or purchase of the property.

Cloud on Title
A lien or claim on a property that impairs the transfer of ownership to another.

CLTV
An abbreviation for "combined loan-to-value."

Co-Signer
A person who signs a contract or promissory note with another individual or party. At the end of the day everyone who signs the contract or note takes responsibility for what is owed.