Cap
A provision of an ARM limiting how much the interest rate or mortgage payments may increase.

Cash Out
A loan transaction in which the borrower receives funds at the time of closing.

Closing
A schedule appointment where and when a sale is finalized, the buyer signs the mortgage and closing costs are paid. Also called "settlement."

Closing Costs
Expenses (over and above the price of the property) incurred by buyers and sellers in transferring ownership of a property. Also called "settlement costs."

Co-Borrower
An additional borrower on a loan. A co-borrower's obligations on a loan are the same as all other borrowers.

Commitment Letter
A formal offer by a lender stating the terms in which it agrees to loan money to a home buyer.

Comparables (Comps)
An abbreviation for comparable properties used for comparative purposes in the appraisal process; facilities of reasonably the same size and location with similar amenities; properties which have been recently sold, which have characteristics similar to property under construction, thereby indicating the approximate fair market value of the subject property.

Conventional Mortgage
Any mortgage that is not insured or guaranteed by the federal government.

Convertible ARM
An adjustable-rate mortgage that can be converted to a fixed-rate mortgage under specific conditions.

Coverage
The amount of protection, usually expressed in a percentage of the total claim amount, an insured receives under a certificate.

Credit Report
A report of an individual's credit history prepared by a credit bureau and used by a lender in determining a loan applicant's creditworthiness.

Cure
A loan that is removed from delinquency status with no loss to the insurer.

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