Terms with Category Mortgages

  • Commercial Loan Definition,
    • A loan taken out by a business.
  • Commercial Mortgage Definition, Very Important,
    • A mortgage for commercial property.
  • Commission (comm) Abbreviation,
    • An agent's fee for negotiating a real estate or mortgage loan transaction, often expressed as a percentage of the selling price.
    • A fee paid to a salesperson for selling a product to a customer.
  • Commitment Definition,
    • A written agreement from a lender promising to lend money on certain terms for a specified time period.
  • Commitment Fee Definition,
    • A fee paid by a borrower to a lender who promises to lend money on certain terms for a specified time period.
  • Common Law Marriage (CLM) Acronym,
    • To be recognized as being married without foregoing a matrimonial ceremony.
  • Comparables Definition,
    • Refers to "comparable properties," which are used for comparative purposes in the appraisal process.
  • Compound Interest Definition,
    • Interest that is calculated by adding the interest earned in the current period to the principal and figuring the next period's interest on this "compounded" total amount.
  • Compounding Method Definition,
    • Used in Bank rate tables. These include: S--Simple interest. A--Compounded annually. H--Compounded semi-annually. Q--Compounded quarterly. M--Compounded monthly. D--Compounded daily.
  • Conditional Commitment Definition,
    • A promise by a lender to make a loan if the borrower meets certain requirements.
  • Conforming Loan Definition,
    • A mortgage that is eligible for purchase or securitization by one of the government-sponsored enterprises such as Fannie Mae, Freddie Mac and Ginnie Mae (US mortgages only). Requirements include size of the loan, type, and age
  • Construction Loan Definition,
    • A short-term interim loan for financing the cost of construction. The lender makes payments to the builder at periodic intervals as the work progresses.
  • Construction to Permanent Loan Definition,
    • A loan that finances the construction, then for a long-term, traditional mortgage, as distinct from a construction loan followed by a separate mortgage loan.
  • Contractual Lien Definition,
    • A legal claim against property as a result of a voluntary contract, such as a mortgage.
  • Conventional Mortgage Definition, Important,
    • A mortgage that is not insured or guaranteed by CMHC or GE Capital.
  • Conversion Clause Definition,
    • A provision that may appear in an adjustable-rate loan agreement allowing the loan to be changed to a fixed-interest rate loan, usually for an additional charge.
  • Convertible ARM Definition,
    • An adjustable rate mortgage (ARM) that can be converted to a fixed-rate mortgage under certain conditions.
  • Convertible Mortgage Definition, Important,
    • A mortgage where the borrower has the option at specified times to change the term length.
  • Cooperative Mortgage Definition, Important,
    • A loan that allows the borrower to buy into a co-op project.
  • Covenantor Definition,
    • A person who promises to be responsible for the repayment of a loan.
  • Creative Financing Definition,
    • An innovative or unusual way of structuring a home loan that allows the buyer to buy the house.
  • Credit Definition,
    • Money that a lender gives to a borrower on condition of repayment over a certain period.
  • Credit Bureau (CB) Acronym, Very Important,
    • A company that collects and sells information about how people handle credit. It issues credit reports that list how individuals manage their debts and make payments, how much untapped credit they have available and whether they have applied for any loans. The reports are made available to individuals and to creditors who profess to have a legitimate need for the information.
    Company that determines one's credit worthiness.
  • Credit History Definition,
    • A record of an individual's or company's past borrowing patterns and whether or not debts were repaid on time.
  • Credit Life Insurance Definition,
    • Life insurance that repays the insured's debts upon their death. The death benefit decreases as the debt is paid off.
  • Credit Rating (CR) Acronym, Very Important,
    • A judgement of a person's ability to repay debts. The rating is often based on a person's current and projected income and past debt payment history. Also called a credit score.
    A metric to measure the credit worthiness of a debtor.
  • Credit Report (CR) Acronym, Very Important,
    • A report on a loan applicant's willingness and ability to make payments in a timely manner in the past. This report is provided to the bank by an outside agency.
    A report that outlines the credit worthiness of an individual or entity.
  • Credit Reporting Agency (CRA) Acronym,
    • 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.
  • Credit Repository Definition,
    • Another term for a credit bureau.
  • Credit Score Definition,
    • Also referred to as a 'Beacon Score' is a number, between 300 and 900, that reflects a person's credit history. Lenders calculate this number using a computer system as part of the process for assigning rates and terms to the loans they grant.
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