HELOC EXPERT GLOSSARY

Terms Starting with C

Plain-English definitions for HELOCs, home equity loans, refinancing, DSCR, VA lending, underwriting, credit, title and closing.

Each letter has its own permanent glossary page for easier browsing and linking.

Money received and paid over a period; in rental-property analysis it often refers to property income after specified expenses and debt service.

Liquid funds retained to cover expected or unexpected expenses after closing.

A refinance in which a new mortgage replaces existing secured debt and provides eligible cash proceeds to the borrower.

Fees and expenses associated with originating and closing a mortgage or home-equity transaction.

A federal disclosure used for many closed-end mortgage transactions that shows final loan terms and closing costs.

A person who applies jointly and shares responsibility for repaying the debt.

A transfer of rights in an asset or contract as security for an obligation.

The total scheduled debt payments considered in a cash-flow or underwriting analysis.

The total balances of loans secured by a property divided by the property value, usually expressed as a percentage.

A positive borrower or property characteristic that may offset another area of underwriting weakness.

A mortgage that meets applicable Fannie Mae or Freddie Mac purchase criteria and loan limits.

A disbursement made as eligible construction or renovation work progresses.

A restriction placed with a credit bureau that limits access to a consumer credit file until lifted or thawed.

The maximum amount that may be outstanding on a line of credit, subject to account terms.

An approved increase to a revolving credit limit, generally subject to lender review and program rules.

A record of a consumer’s credit history obtained from a credit reporting agency.

A numerical score derived from credit-report information and used by many lenders as one factor in evaluating credit risk.

The percentage of available revolving credit currently being used.