C Mortgage Terms | Oconee County Real Estate
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Call Provision
- See Acceleration Clause
Cap
The limits for an Adjustable Rate Mortgage. The most
common cap is for the Interest Rate. There are also
Payment Caps, although you should be wary of them (see
Negative Amortization).
Cash Out
Receiving money back when refinancing your present mortgage.
Ceiling
The maximum allowable interest rate over the life of
the loan of an adjustable rate mortgage.
Closing
The time when the Title of the home changes hands from
the seller to the buyer and the time when the buyer
makes full payment to the seller, including financing
for the home. The Closing often takes place at the title
company's office.
Closing
Costs
Costs the buyer must pay at the time of closing in addition
to the down payment: including points, origination fees,
an escrow fund for taxes and homeowners insurance, charges
for title insurance, mortgage insurance premium, and
so forth. Closing costs average 3%-4% of the loan amount.
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.
Commitment
The lender's written promise to give you a mortgage
for a specific loan amount (Principal), Interest Rate
and Closing Costs. This promise is usually limited to
a 30 to 60 day period. Since the lender ties up the
money for this time period it might charge you if you
don't sign the mortgage.
Common Areas
Those portions of a building, land and amenities owned
(or managed) by a planned unit development (PUD) or
condominium project's homeowners' association. All of
the unit owners share in the common expenses of their
operation and maintenance. Common areas include swimming
pools, tennis courts and other recreational facilities
as well as common corridors of buildings, parking areas,
means of ingress and egress, etc.
Condominium
A real estate project in which each unit owner has title
to a unit in a building, and undivided interest in the
common areas of the project, and sometimes the exclusive
use of certain limited common areas.
Construction Loan
A short tem loan given to you by a builder for financing
the cost of construction. The loan comes due after the
construction work is completed. While monthly payments
are made until the balance is due in one lump sum (balloon),
usually these payments are Interest only (see Balloon
Payment).
Consumer Reporting Agency (or
Bureau)
An organization that prepares reports that are used
by lenders to determine a potential borrower's credit
history. The agency obtains data for these reports from
a credit repository as well as from other sources.
Contingency
A condition put on an offer to buy a home; such as the
prospective buyer making an offer contingent on his
or her sale of a present home.
Conventional Loan
A loan that is not an FHA or a VA loan. A Conventional
Loan is neither insured by the government nor guaranteed
by the government. It usually requires a 10%-20% down
payment and may be backed by
private mortgage insurance (PMI).
Contract of Sale
- see Real
Estate Purchase Contract
Cosigner
If you can't qualify for a mortgage you may need a Cosigner
to help you obtain the mortgage. A Cosigner is usually
a close relative who is willing to sign the mortgage
with you and is equally responsible for repaying the
loan. A good cosigner is generally someone with an excellent
credit/payment history and/or more-than-sufficient available
funds or income to be able to make the payment if you
are unable to for any reason.
Credit History
A record of an individual's open and fully repaid debts.
A credit history helps a lender to determine whether
a potential borrower has a history of repaying debts
in a timely manner.
Credit Report
Your lender can request your credit history in the form
of a Credit Report. You have to pay for this report.
This report shows the lender whether you have been diligent
in making all your debt payments over the last seven
years.
Credit Score
A numeric score from 500 - 800 that reflects the success
of your use of credit. Higher scores generally indicate
lower risk to lenders.
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