Cash Out - Any cash received when you get a new loan that is larger than the remaining balance of your current mortgage, based upon the equity you have already built up in the house. The cash out amount is calculated by subtracting the sum of the old loan and fees from the new mortgage loan. For example, if your existing loan is $100,000, you might refinance it with a loan of $120,000. After you pay off your current loan ($100,000) and any loan-origination costs for the new loan (for example $2,000 in points), you would be left with $18,000 cash out. Cash-out loans may not be available for all types of property.

Ceiling - The maximum allowable interest rate of an adjustable rate mortgage.

Certificate of Title - This document shows that the property in question belongs to the current owner. It should be provided by a qualified source such as a title company. The certificate of title however does not offer the protection given by title insurance.

Cosing (or Settlement) - The settlement or closing is the conclusion of your real estate transaction. It includes the delivery of your security instrument, signing of your legal documents and the disbursement of the funds necessary to the sale of your home or loan transaction (refinance). A closing statement is issued which is a document that is used in a real estate transaction to outline the fees, insurance, commissions, and other costs that are associated with a transfer of ownership to occur. This is sometimes referred as "settlement statement" and is commonly prepared by the closing agent.

Closing Costs - Also known as settlement costs, these costs are for services that must be performed to process and close your loan application. Examples include title fees, recording fees, appraisal fee, credit report fee, pest inspection, attorney's fees, taxes, and surveying fees. Closing cost vary by geographic location.

Collateral - Assets (such as your home) pledged as security for a debt, however the borrower risks losing the property if the loan is not repaid according to the terms of the mortgage or deed of trust

Commission Fee - Money paid to a real estate agent or broker for negotiating a real estate or loan transaction. Salespeople earn commissions for the work that they do and there are many sales professionals involved in each transaction, including Realtors, loan officers, title representatives, attorneys, escrow representative, and representatives for pest companies, home warranty companies, home inspection companies, insurance agents, and more.

Commitment - A promise to lend and a statement by the lender of the terms and conditions under which a loan is made.

Comparables - An abbreviation for "comparable properties"; used for comparative purposes in the appraisal process. Comparables are properties like the property under consideration; they have reasonably the same size, location, and amenities and have recently been sold. Comparables help the appraiser determine the approximate fair market value of the subject property.

Comparative Market Analysis - An informal estimate of market value that a real estate agent or broker calculates based on sales of comparable properties. An appraisal or a comparative market analysis are the most accurate ways to determine what your home is worth.

Condominium - A real estate project in which each unit owner holds title to a unit in a building, an undivided interest in the common areas of the project, and sometimes the exclusive use of certain limited common areas. The condominium may be attached or detached. The homeowners association dues are included in the total monthly mortgage payment for qualifying purposes. Often mistakenly referred to as a type of construction or development, it actually refers to the type of ownership.

Confirming Loan - A mortgage loan that meets all requirements to be eligible for purchase by federal agencies such as Fannie Mae and Freddie Mac. The maximum conforming loan amount is $300,700 for a one-unit property ($451,050 in Alaska, Hawaii and the Virgin Islands).

Contingency - A condition that must be satisfied before a contract is legally binding. For example, home purchasers often include a contingency that specifies that the contract is not binding until the purchaser obtains a satisfactory home inspection report from a qualified home inspector.

Conventional Loan - Loans that are not made under any government housing program; they are not subject to the restrictions of government housing programs, such as loan size limits.

Conversation Clause - A provision in some ARMs that allows you to change an ARM to a fixed-rate loan, usually after the first adjustment period. The new fixed rate will be set at current rates, and there may be a charge for the conversion feature.

Convertible ARM - A type of ARM loan with the option to convert to a fixed-rate loan during a given time period.

Cooperative (or Co-Op) - A multi-unit housing complex that allows multiple owners that allows shares in the cooperative corporation that owns the property, each resident in the co-op has the right to occupy a specific unit or apartment.

Cost of Funds Index (or COFI) - An index of the weighted-average interest rate paid by savings institutions for sources of funds, usually by members of the 11th Federal Home Loan Bank District. COFI is one of the indexes that are used to determine interest rate changes for certain adjustable rate mortgages.

Credit Bureau - A credit bureau is a clearinghouse for credit history information. Credit grantors provide the bureau with factual information on how their credit customers pay their bills. The bureau regularly assembles this information, along with public record information obtained from courthouses around the country, into a "file" on each consumer. Equifax, Experian, and Trans Union are three largest credit bureaus in the United States.

Credit Report - This is a report that states your credit scores based on the results of the three major national credit Bureaus (Equifax, Experian, and TransUnion.) An average of the three is used to determine the score. It helps determine whether a client is eligible for a mortgage as well as the interest rate. The higher the score, the easier it is for that person to obtain a loan. Usually about $15 - $30

Credit Scores - A statistical method of assessing your creditworthiness. Your credit card history; amount of outstanding debt; the type of credit you use; negative information such as bankruptcies or late payments; collection accounts and judgments; too little credit history and too many credit lines with the maximum amount borrowed are all included in credit-scoring models to determine your credit score.