A limit placed on the adjustments in an adjustable rate mortgage. This protects the borrower from large increases in the interest rate or payment level.
Certificate of Deposit, CD
A type of savings account with a specified minimum deposit and term that generally provides higher interest than standard savings accounts.
Certificate of Eligibility
Issued by the Department of Veterans Affairs as evidence of a veterans eligibility to obtain a VA loan.
Certificate of Reasonable Value (CVR)
Issued by the Veterans Administration when an appraisal has been performed on a property being bought with a VA loan.
chain of title
A historical analysis of transfers of a property title and how it came to be vested in the current owner.
An additional individual whose name is on the title to the property and who is under equal obligation to repay the loan as is the primary borrower.
Any real or personal property of marketable value that a borrower pledges as security in order to obtain a loan. Land is the collateral in mortgage transactions.
When a borrower falls behind on payments, the loan goes into "collection".
Property acquired by a married couple during the marriage belongs to both of them jointly. (There are exceptions under certain circumstances.) This is a common practice in the southwestern United States.
A condo project that has rental or registration desks, short-term occupancy, telephone services, food, and daily cleaning services and is operated as a hotel even though the units are individually owned. These are common in resort areas.
A condition that must be met in order for a contract to become legally binding.
A mortgage that is not a government loan.
An adjustable-rate mortgage with the option to switch to a fixed-fate mortgage by a specific time.
A complex owned by the residents, giving each the right to occupy a specific unit. This is called a cooperative corporation.
An organization that collects and records financial and public records information on the payment history of those being considered for credit.