Glossary of Mortgage Terms

A cash-out refinance gives you a new, bigger loan instead of your current mortgage and gives you the difference in cash. This allows you take out and use the equity you've built up in your home over time.

A chain of title is a complete record of who has owned a piece of property over time, showing how it has changed hands from the original owner to the current one.

A chattel mortgage is a loan that lets you buy movable personal property, like a manufactured or mobile home. The property itself serves as collateral instead of land or real estate.

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.