Buydown Account

An account is held in order to provide funds that can be applied to reduce the monthly mortgage payment as each payment comes due, during the period that an interest rate buydown plan is in effect. This account is held in order to help with the monthly mortgage payment and to make it more affordable….

CAP

An adjustable-rate mortgage (ARM), a limitation on the amount the interest rate or mortgage payments may increase or decrease. Also see “Payment Cap,” “Rate Cap,” and “Cap.”

Capacity

 Your ability to make your mortgage payments on time. This de- pends on your income and income stability (job history and security), your assets and savings, and the amount of your income each month that’s left over after you’ve paid for your housing costs, debts and other obligations.

Cash-Out Refinance

A cash-out refinance can be a good option for borrowers who have built up equity in their home and who want to use that equity to pay down other debts, make home improvements, or for any other purpose. In a cash-out refinance, the borrower takes out a new loan that is of a larger amount…

Certificate of Eligibility

A Certificate of Eligibility is a document that proves a veteran’s eligibility for a VA-guaranteed mortgage loan. This certificate is issued by the U.S. Department of Veterans Affairs and is required in order to apply for a VA loan. The Certificate of Eligibility is proof that the veteran has met the service requirements for a…

Chain of Title

The chain of title is the history of all the documents that have transferred ownership of a piece of real property. The chain starts with the earliest existing document and ends with the most recent. This history can be important when determining the current owner of a piece of property or when trying to clear…

Closing Costs

: The upfront fees charged in a mortgage loan transaction. Money paid by a buyer (and/or seller, or another third party, if applicable) to effect the closing of a mortgage loan, generally including, but not limited to a loan origination fee, title examination and insurance, survey, attorney’s fee, and prepaid items, such as escrow deposits for…

Property Rights

Property rights are the legal rights that a person or entity has to land, buildings, or other objects. These rights can be set out in a contract, deed, title, or another legal document. Property rights can be transferred from one person or entity to another and bought, sold, or leased. In some jurisdictions, property rights…

Seller Disclosure

As a seller, it’s important to disclose any and all information about the property that could affect a buyer’s decision to purchase it. This includes pest problems, property line disputes, construction projects in the area, military base noises or activities, association assessments or legal issues, factory odors, and even deaths on the property (as permitted…

Tappable Equity

Tappable equity is the amount of money a homeowner can borrow against while still maintaining a 20% equity stake in their property. It’s a valuable resource for those who need to access cash but don’t want to sell their home or take out a traditional loan. Tappable equity can be used for a variety of…