|
|
Houston Mortgage > Glossary >
Mortgage > C 1-10
|
|
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.
Cap
The top limit on the amount the interest rate can increase during a single time period of an adjustable-rate mortgage. Every ARM has two caps: a periodic cap, which limits the periodic changes to the interest allowed in the loan agreement, and a lifetime cap, which governs the total increase that can be imposed during the life of the loan.
Capital
Money that is used to make money; for example, to buy rental property or a business.
Capital expenditure
The cost of making an improvement to a property.
Capital gains
The profit that an owner makes when selling real estate or other property.
Capital gains tax
A tax on profits from the sale of real estate or investments.
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.
|
|
|
Houston Home Mortgage