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Glossary

Condominium

A popular form of home ownership. You own the airspace within the walls, but not the actual walls, ceilings or floors. You may also own a percentage of common areas such as a swimming pool. Common areas are usually maintained by a condominium association, which charges a regular fee.

Conforming Loan

A mortgage loan that meets all the eligibility requirements for purchase by federal agencies such as Fannie Mae and Freddie Mac. The maximum conforming loan amount changes from time to time and varies according to geographical location. Our experienced mortgage representatives are happy to work with you to give you up-to-date information about the loan limits for your local area.

Construction Loan

A short-term loan for financing the cost of construction. The lender makes periodic loan payments directly to the builder or contractors as the home is built.

Contingency

A condition that must be met before the sales contract for your new home is legally binding. For example, the contract might not be binding until a satisfactory home inspection report is obtained from a qualified home inspector.

Conventional Mortgage

A loan that is not part of a government housing program, and is not insured or guaranteed by the federal government. A conforming loan, for instance, is an example of a conventional mortgage.

Conversion Option

A provision in some adjustable rate mortgages (ARMs) that allows you to change the ARM to a fixed rate mortgage. Also known as Conversion Clause.

Convertible ARM

An adjustable rate mortgage that can be converted to a fixed rate mortgage under specified conditions, usually by refinancing or exercising a conversion option.

Conveyance

The transfer of a property title from one person to another. There are many ways to do a conveyance — with the title agent or attorney, for example.

Corporate Relocation

An arrangement through which an employer moves an employee to another area of the country. Typically, as part of the relocation agreement, the employer pays a portion of moving and mortgage-related expenses. Many companies specialize in providing complete corporate relocation services.

Credit

Your purchase of the present use of money with the promise to pay it back in an agreed-upon time period, and at a cost usually defined by an interest rate.

Credit Bureau

A company that provides information to a lender about your creditworthiness, based on your credit history. The three major national credit bureaus are Equifax, Experian, and Trans Union. Also called Consumer Credit Reporting Agency or Credit Repository.

Credit History

Your debt and repayment history on loans and credit cards.

Credit Rating

See credit score.

Credit Report

A credit bureau's detailed report of your credit history.

Credit Repository

See Credit Bureau.