1. Change Cap - an interest rate cap which limits the increase on the interest rate from one adjustment period to the next.
2. Life Cap - an interest rate cap which limits the increase rate over the life of the loan.

Equity/Funds required for the closing.

A bank-guaranteed check which is drawn directly from the issuing personal account at a financial institution.

This is the final step in executing a real estate transaction and precedes the entry in the land register as we know it. On the closing date the seller is paid, the loan amount is paid out and the ownership is officially transferred.

Cost associated with transfer of title and mortgage loan creation. Examples of closing costs are origination fee, attorney fee, title, insurance fee, intangible tax fee, tax service fee, recording fee, etc.

This date is set up in the contract and agreed upon for the closing of the real estate transaction; it is binding for both parties.

The statement which lists the financial settlement between buyer and seller, and also the costs each must pay.

(Combined Loan-to-Value) The combination of all mortgages (first and second(s)) being placed on the property at closing and determining the actual equity being created by borrower in relation to the lesser of sales price or appraised value.

(CLTV) The combination of all mortgages (first and second(s)) being placed on the property at closing and determining the actual equity being created by borrower in relation to the lesser of sales price or appraised value.

A system of individual fee ownership of units in a multi-family structure, combined with joint ownership of common areas of structure and land.

Loans offered to assist in the building of a new home but require to be paid in full by completion or will be offered to do a second closing for a permanent end loan. During construction, only partial or interest only payments are made to the lender and the lender makes payments called disbursements to the construction company according to the phase of the construction.

Loans offered to assist in the building of a new home and automatically covert to permanent end loan with a one time closing. Typically loans are partial or interest only, payments are made to the lender and the lender makes payments called disbursements to the construction company according to the phase of the construction.

Option given on certain Adjustable Rate Loans to convert to a Fixed Rate Loan. Option is typically offered during a predetermined and limited period of time with fixed rate being determined by a specified index plus margin.