C

Caps (Interest)
Consumer safeguards which limit the amount the interest rate on an adjustable rate mortgage may change per year and/or the life of the loan.
Caps (Payment)
Consumer safeguards which limit the amount monthly payments on an adjustable rate mortgage may change.
Cash Back Auto Refinance
Cash back auto refinances could give you cash when you refinance your loan, however, you’ll want to make sure you are lowering your interest rate (and possibly your monthly payment) or improving your terms.
Cash Flow
Cash flow is an accounting term representing the difference in the amount of cash a business has at the beginning of a period compared to the amount it has at the end of that period.
Cash-Out Refinancing
A refinance in which the new loan amount exceeds the total needed to pay off the existing mortgage. The difference goes to the borrower and can be used for any purpose.
Certificate Of Incorporation
A certificate of incorporation is a legal document issued by a state office in order to register a newly organized corporation. It is considered a license to form a corporation.
Closing
The procedure at the end of a property sale or refinance in which funds legally change hands and public records are filed. Closing is also called settlement.
Closing Costs
Closing costs include a loan origination fee, points, appraisal fee, title search and insurance, survey, taxes, deed recording fee, credit report charge and other costs assessed at settlement. The closing costs usually are about 2 percent to 6 percent of the mortgage amount.
Collision Insurance
Insurance which covers damage to a vehicle that results from a collision with another vehicle or object.
Commission
The fee charged by an agent or broker for representing a buyer or seller’s interest. A commission is generally a percentage of the sales price.
Competitive Market Analysis
A report prepared by a real estate agent that determines a house’s market value. The agent compares the house’s attributes to similar properties in the area that have recently sold or are still on the market. The CMA is often used to establish the listing price.
Comprehensive Insurance
Insurance which covers damage to a vehicle caused by events other than a collision, such as flood, fire, hail, theft, or vandalism.
Condominium
Individually-owned unit within a multi-unit development or complex, including an individual interest in the common areas and facilities used by the owners.
Condominium Association
An association of unit owners in a condominium building. The association elects a board of directors, which handles the maintenance and repair of common areas, disputes among unit owners, and enforcement of rules and regulations, and condominium fees.
Condominium Fees
Also called maintenance fees, the monthly fees paid by all condominium owners. The condominium fees go toward the maintenance and repair of common areas in the building, as well as salaries for groundskeepers, repairmen and security guards. The condominium fees are set and managed by the condominium association, and are typically determined based on the size of your unit.
Conforming Loan
A conforming loan is any loan that meets the criteria and limits set forth by the two largest buyers of loans, Fannie Mae and Freddie Mac.
Consolidating Debt
Replacing several debts or loans by transferring the balances to a single loan or line of credit, usually at a better rate. (Debt consolidation loans are often home equity loans or lines.)
Construction Loan
A short term interim loan for financing the cost of construction. The lender advances funds to the builder as the work progresses.
Consumer Loan
A consumer loan is when a person borrows money from a lender, either unsecured or secured. There are several types of consumer loans and some of the most popular ones include mortgages, refinances, home equity lines of credit, credit cards, auto loans, student loans, and personal loans.
Consumer Reporting Agency
An organization commonly referred to as a credit bureau that prepares credit reports which are used by lenders to determine a potential borrower’s credit history. The agency obtains data for these reports from a credit repository and from other sources.
Conventional Loan
A conventional loan is a mortgage that is not guaranteed or insured by any government agency, including the Federal Housing Administration (FHA), the Farmers Home Administration (FmHA) and the Department of Veterans Affairs (VA). It is typically fixed in its terms and rate.
Conventional Mortgage
Any mortgage which is not insured or guaranteed by a government agency such as HUD/FHA, VA, or the Farmers Home Administration.
Conversion Option
A conversion option allows you to convert an ARM to a fixed rate mortgage. You will likely pay a higher rate or more points to have this option.
Cooperative Housing
An apartment building or a group of dwellings owned by a corporation, the stockholders of which are the residents of the dwellings. It is operated for their benefit by their elected board of directors. In a cooperative, the corporation or association owns title to the real estate. A resident purchases stock in the corporation which entitles him to occupy a unit in the building or property owned by the cooperative. While the resident does not own his unit, he has an absolute right to occupy his unit for as long as he owns the stock.
Corporation
A corporation is a company or a group of people who are legally authorized to act as an individual entity.
Cosigner
Another person who signs your loan and assumes equal responsibility for it.
Covenants, Conditions, And Restrictions (CC&Rs)
A set of rules and regulations governing a condominium building. The CC&Rs can include restrictions on things such as noise levels, pet ownership, and renovations. These rules are enforced by the condominium association.
Credit
The right granted by a creditor to pay in the future in order to buy or borrow in the present; also, a sum of money owed to a person or business.
Credit Bureau
An agency that keeps your credit record.
Credit Card
Any card used from time to time to borrow money or buy goods or services on credit.
Credit Card Receivables
Credit card receivables, also known as credit card factoring, is a type of financing available to businesses that are paid by customers with credit cards.
Credit History
The record of how you’ve borrowed and repaid debts.
Credit Limit
A credit limit is the maximum amount of charges that may be charged to an account.
Credit Ratio
A credit ratio is expressed as a percentage and results when a borrower’s monthly payment obligation on long-term debts is divided by his or her net income (FHA/VA loans) or gross monthly income (Conventional loans).
Credit Report
A credit report is a report of an individual’s credit history that a credit reporting company or credit repository prepares to determine a borrower’s creditworthiness.
Credit Reporting Company
Company that collects information received from more than one credit repository, merges all the information, and reports it in one form; merged credit reports.
Credit Score
A credit score is a number generated by a statistical system used to rate the credit of an applicants according to various characteristics relating to creditworthiness.
Cs Of Creditworthiness (4 Cs)
The four Cs of creditworthiness are character, capacity, capital, and conditions. These are the elements potential lenders examine when determining whether to extend credit to a business.
Curb Appeal
The initial attractiveness of a property, when viewed from the road. Sellers and real estate agents will often try to increase the curb appeal of a home by cleaning up the porch, trimming plants along a walkway, or giving the outside of a home a fresh coat of paint.
Current Balance
When referring to a loan, such as an auto loan or a mortgage, your current balance is the amount you currently still owe on the loan according to the date of your statement.

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