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Houston Mortgage > Glossary >
Home Equity > C 1-10
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Call option
A clause in a mortgage that gives the lender the right to request the balance at any time.
Cancellation clause
A provision in a lease or other contract that spells out under what conditions the parties can call off the deal.
Capital expenditure
The cost of making an improvement to a property.
Capital improvement
Any permanent structure or other asset added to a property that adds to its value.
Capitalization
A way to estimate the value of a rental or commercial property using the rate of return on investment and the property's annual net operating income.
Capitalization rate
The estimated percentage rate of return that a property will produce on the owner's investment.
Cash flow
The money an investment produces after subtracting cash expenses from income.
Cash-out refinance
The taking out of a new mortgage on the same property in which the amount borrowed is greater than the amount of the previous mortgage. The difference is taken out in cash.
Cashier's check
A check drawn by a bank on itself, signed by a cashier or bank officer and payable to a third party named by the customer. An instrument used to guarantee funds are available. There is usually a fee associated with cashier's checks.
Caveat
A warning or caution.
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Houston Home Mortgage