Current Mortgage Rates: Richmond, VA
3.000% (3.001% APR) 30yrs
2.500% (2.617% APR) 15yrs
as of 06/18/21
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Building on Trust™

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Glossary of Mortgage Terms

Search for glossary terms (regular expression allowed)
Term Main definition
Cap
Same as Float-down
Cash Flow Option Loan
Same as Flexible Payment ARM.
Cash in refi
As part of a finance transaction, paying down the loan balance in order to reduce the loan-to-value ratio and qualify for a lower interest rate and/or mortgage insurance premium.
Cash-out refi
Refinancing for an amount in excess of the balance on the old loan plus settlement costs. The borrower takes “cash-out” of the transaction. This way of rising cash is usually an alternative to take out a home equity-loan.
Closing
On a home purchase, the process of transferring ownership from the seller to the buyer, the disbursement of funds from the buyer and the lender to the seller, and the execution of all the documents associated with the sale and the loan. On a refinance, there is no transfer of ownership, but the closing includes repayment of the old lender.
Closing costs
Same as Settlement costs.
Closing date
The date which the closing occurs
CMG plan
A technique for repaying a loan early that involves using the mortgage as a substitute for a checking account
Co-Borrowers
One or more persons who have signed the note, and are equally responsible for repaying the loan. Unmarried co-borrowers who live together are advised to agree beforehand on what happens if split.
Co-signing a note
Assuming responsibility for someone else's loan in the event that that party defaults. A risk not to be taken lightly.
COFI
Cost of funds index. One of many interest rate indexes used to determine interest rate adjustments on an adjustable rate mortgage.
Collateral
Assets pledged as security for the repayment of a loan.
Conforming mortgage
A loan eligible for purchase by the two major Federal agencies that buy mortgages, Fannie Mae and Freddie Mac.
Conservator ship
A legal status where a conservator is appointed to oversee a firm in trouble in order to protect and conserve the firm's assets. Fannie Mae and Freddie Mac were placed in conservator ships in September, 2008.
Construction financing
The method of financing used when a borrower contracts to have a house built, as opposed to purchasing a completed house.

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