Glossary of Mortgage Terms

Clear to close means that the lender has officially approved the borrower's mortgage application and they can go to their closing appointment.

Closing costs are the fees and charges that a home buyer or person refinancing their mortgage has to pay at settlement to finish the loan. These costs usually range from 2% to 5% of the total loan amount.

A housing cooperative, or co-op, is a residential property owned by a corporation. Shareholders of the corporation can live in individual units through a proprietary lease.

Collateral is an asset you pledge to a lender as a guarantee for a loan, and for most mortgages, the home you're buying is that asset.

A collateralized mortgage obligation (CMO) is a type of mortgage-backed security that puts home loans into groups called tranches, each with its own level of risk and payment schedule.

A commercial equity line of credit (CELOC) is a type of revolving credit line that lets business owners borrow money against the equity they have built in their commercial property. They only pay interest on the amount they actually use.

A community lending program is a type of mortgage that helps people with low to moderate incomes buy a home by lowering the down payment, making credit requirements more flexible, and giving them money that traditional loans don't always give.

Community Seconds is a Fannie Mae program that lets approved nonprofits, government agencies, and employers give home buyers a second mortgage to help them pay for their closing costs or down payment.

A comparative market analysis (CMA) is a report that looks at similar homes that have recently sold or been listed in the same area to figure out how much a property is worth on the market.

In real estate, condemnation is the legal process by which the government takes private property for public use or says that a building is unsafe. The owner is then entitled to fair payment.