Similar to the acceleration clause.
Real Estate and Mortgage

Adjustable Rate Mortgages have fluctuating interest rates, but those fluctuations are usually limited to a certain amount. Those limitations may apply to how much the loan may adjust over a six month period, an annual period, and over the life of the loan, and are referred to as ''caps''. Some ARMs, although they may have a life cap, allow the interest rate to fluctuate freely, but require a certain minimum payment which can change once a year. There is a limit on how much that payment can change each year, and that limit is also referred to as a cap.
Real Estate and Mortgage

The profit on the sale of a capital asset, such as stock or real estate. If you sell your primary residence, you can exclude $250,000 in profit from capital gains tax. A couple can exclude $500,000.
Real Estate and Mortgage

When a borrower refinances his mortgage at a higher amount than the current loan balance with the intention of pulling out money for personal use, it is referred to as a ''cash out refinance''.
Real Estate and Mortgage

See covenants, conditions and restrictions.
Real Estate and Mortgage

An official count of the number of people living in a certain area, such as a district, city, county, state, or nation. The United States Constitution requires the federal government to perform a national census every ten years. The census includes information about the respondents' sex, age, family, and social and economic status.
Real Estate and Mortgage

A time deposit held in a bank which pays a certain amount of interest to the depositor.
Real Estate and Mortgage

One of the indexes used for determining interest rate changes on some adjustable rate mortgages. It is an average of what banks are paying on certificates of deposit.
Real Estate and Mortgage

A document issued by the Veterans Administration that certifies a veteran's eligibility for a VA loan.
Real Estate and Mortgage

Once the appraisal has been performed on a property being bought with a VA loan, the Veterans Administration issues a CRV.
Real Estate and Mortgage

Experience - To earn the Certified Residential Specialist (CRS) Designation, every REALTOR® must have significant experience and volume of real estate transactions. Ethics - Every CRS Designee is required to maintain membership in the NATIONAL ASSOCIATION OF REALTORS® and to abide by its strict Code of Ethics. A Focus On Home Buying And Selling - To help make the home buying and selling process more rewarding, every CRS Designee must have a proven track record in the business, as well as advanced education in related areas like finance, technology and marketing. Work with the top 5% Technology Expertise - The training available to CRS Designees includes a strong focus on technology and its applications in the real estate business.
Real Estate and Mortgage

A nonrefundable fee charged by a landlord when a tenant moves in. The fee covers the cost of cleaning the rented premises after you move out, even if you leave the place spotless. Cleaning fees are illegal in some states and specifically allowed in others, but most state laws are silent on the issue. Landlords in every state are allowed to use the security deposit to clean a unit that is truly dirty.
Landlords and Tenants

A title that is free of liens or legal questions as to ownership of the property.
Real Estate and Mortgage

This has different meanings in different states. In some states a real estate transaction is not consider ''closed'' until the documents record at the local recorders office. In others, the ''closing'' is a meeting where all of the documents are signed and money changes hands.
Real Estate and Mortgage

Closing costs are separated into what are called ''non-recurring closing costs'' and ''pre-paid items''. Non-recurring closing costs are any items which are paid just once as a result of buying the property or obtaining a loan. ''Pre-paids'' are items which recur over time, such as property taxes and homeowners insurance. A lender makes an attempt to estimate the amount of non-recurring closing costs and prepaid items on the Good Faith Estimate which they must issue to the borrower within three days of receiving a home loan application.
Real Estate and Mortgage

See Settlement Statement.
Real Estate and Mortgage

Any conditions revealed by a title search that adversely affect the title to real estate. Usually clouds on title cannot be removed except by deed, release, or court action.
Real Estate and Mortgage

An additional individual who is both obligated on the loan and is on title to the property.
Real Estate and Mortgage

Two or more tenants who rent the same property under the same lease or rental agreement. Each co-tenant is 100% responsible for carrying out the rental agreement, which includes paying the entire rent if the other tenant skips town and paying for damage caused by the other tenant.
Landlords and Tenants

In a home loan, the property is the collateral. The borrower risks losing the property if the loan is not repaid according to the terms of the mortgage or deed of trust.
Real Estate and Mortgage