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TermDefinition
- C1-C6 Condition ratingsProperty condition ratings imposed by the Single Family Uniform Appraisal Dataset (UAD), whereby appraisals must rate the condition of the home in addition to its quality (see "Q1 - Q6"). A C1 condition rating indicates New Construction where the entire structure and all components are new and the dwelling features no physical depreciation. C2 properties feature no deferred maintenance, little or no physical depreciation, and require no repairs. A C3 home indicates Limited Deferred Maintenance, where improvements are well-maintained and feature limited physical depreciation due to normal wear and tear. A C4 dwelling shows Minor Deferred Maintenance and physical deterioration due to normal wear and tear, but all major building. C5 homes have Significant Deferred Maintenance and need some significant repairs. Some building components need repairs, rehabilitation, or updating. On the lowest end of the rating are C6 homes with Severe Deferred Maintenance with deficiencies or defects that are severe enough to affect the safety, soundness, or structural integrity of the improvements.
- Cabinet BoxA cabinet box is the interior frame and outer shell of a wall or base cabinet. Cabinet boxes normally have sides, a top and bottom panel and in most cases, a rear panel. Doors and drawer faces can normally be replaced to change the style or appearance of a cabinet box.
- Cabinet Crown MoldingCabinet crown molding is the same as crown molding often found in other rooms of the house, but it matches the kitchen cabinet finish. It is normally installed at the top of wall cabinets to add a decorative touch and is available in various widths. It may be installed even if the cabinets don't reach the ceiling.
- Cabinet DepthAlmost all kitchen and bathroom cabinets are 23 ½ inches deep, but when placing two cabinets together, such as a linen cabinet and vanity, it can be a good idea to verify that they are the same depth prior to placing your order.
- Cabinet DoorsMany wall and base cabinets have a hinged door that allow access to the interior of the cabinet. Cabinet doors normally have all-wood construction although some styles may feature wood veneer over plywood or composite board. The cabinet doors may contribute more to the overall style of your kitchen cabinets than any other component.
- Cabinet FaceThis is the front of a wall or base box. The cabinet doors are normally hinged to the face of wall and base cabinets. The face is often, but not always, in the same finish as the cabinet box and doors.
- Cabinet HardwareThe hardware installed to facilitate the opening and closing of your cabinet doors and drawers is called the cabinet hardware. Cabinet hardware can consist of pulls, knobs, handles, or a combination of all three. Cabinet hardware can complement the look of your cabinets and can range from budget friendly to very expensive depending on the style and material.
- Cabinet LayoutA cabinet layout is a design or footprint of your kitchen or bath showing the proposed locations of your cabinets. Each cabinet is normally designated by its width and style such as base, wall, or vanity. Specialty cabinet locations are also shown. Cabinet layouts may be provided by a kitchen designer or cabinet supplier or you may do your own.
- Cabinet RefacingA more cost-friendly alternative to cabinet replacement where existing cabinets are repainted or have a veneer applied to them.
- Cabinet SoffitThe space between the top of the upper cabinets and the ceiling in kitchens. The soffit forms a boxed framework in this space.
- Cabinet ValanceA cabinet valance is a decorative trim piece used to span a space between two wall cabinets. They are often used when there is a window over the kitchen sink. Valances are available in numerous styles and normally match the finish of the kitchen cabinets.
- Call OptionA provision of a note that allows the lender to require repayment of the loan in full before the end of the loan term. The option may be exercised due to breach of the terms of the loan or at the discretion of the lender.
- Cancellation of ContractThe buyer or seller of a property can decide to cancel their agreement. This could occur due to an inability to finance the purchase if the inspection results in known/unknown issues or some other stated topic related to the transaction. Typically, the buyer has more opportunities than the seller to cancel a purchase, but there is a chance of earnest money or other fees being lost in the process.
- CantileverAn overhang. Where one floor extends beyond and over a foundation wall. For example at a fireplace location or bay window cantilever. Normally, not extending over 2 feet.
- Cap (Architecture)The upper member of a column, pilaster, door cornice, molding, or fireplace.
- Cap FlashingThe portion of the flashing attached to a vertical surface to prevent water from migrating behind the base flashing.
- Cap (Interest)Consumer safeguards that limit the amount the interest rate on an adjustable-rate mortgage can change in an adjustment interval and/or over the life of the loan.
- Lifetime-Payment-CapConsumer safeguards that limit the amount the interest rate on an adjustable-rate mortgage can change in an adjustment interval and/or over the life of the loan.
- Lifetime-Rate-CapConsumer safeguards that limit the amount the interest rate on an adjustable-rate mortgage can change in an adjustment interval and/or over the life of the loan.
- Periodic-Rate-CapConsumer safeguards that limit the amount the interest rate on an adjustable-rate mortgage can change in an adjustment interval and/or over the life of the loan.
- CapacityYour ability to make your mortgage payments on time. This depends on your income and income stability (job history and security), your assets and savings, and the amount of your income each month that is left over after you’ve paid for your housing costs, debts and other obligations.
- CapitalThe principal part of a loan, i.e. the original amount borrowed.
- Capital and InterestA repayment loan and the most conventional form of home loan. The borrower pays an amount each month to cover the amount borrowed (or capital or principal) plus the interest charged on capital.
- Capital Gains TaxCapital gains tax is the profit an individual earns from the sale of a property or an investment. There are two categories for capital gains, short term and long term. Investments that qualify as short term are usually held for a year or less and are taxed at your regular income tax rate. Long term investments are typically held for longer than a year and are taxed at a lower rate than ordinary income tax.
- Capital ImprovementA permanent improvement to real estate that increases the value and/or useful life of the property.
- Capital StackAll debt and equity sources combined that were used to fund an investment in real estate.
- Capitalization RateOr "Cap Rate". A method used to predict the rate of return from an investment property with objective to assess the property's potential and profitability. Calculated by dividing normalized earnings after taxes by present value (or NOI divided by the purchase price), expressed as a percentage.
- Capped RateThe mortgage interest rate will not exceed a specified value during a certain period of time, but it will fluctuate up and down below that level.
- Caps (Payment)Consumer safeguards that limit the amount monthly payments on an adjustable-rate mortgage may change. Since they do not limit the amount of interest the lender is earning, these consumer safeguards may cause negative amortization.
- CarpenterAn individual who possesses wood craftsmanship.
- CarpetingCarpeting is a floor covering made of thick woven fabric, such as nylon, polyester, or natural wool.
- Carrying CostsWhen an investor purchases a property to rehab, they must factor carrying costs into their list of expenses. These are the expenses incurred from the time the property is purchased until the time that it is sold, including interest payments, taxes, insurance and utilities.
- CasementFrames of wood or metal enclosing part (or all) of a window sash. May be opened by means of hinges affixed to the vertical edges.
- Casement WindowA single-window unit, the casement window is usually hinged on the side, and opens outward.
- Cash BuyerWhen a home buyer offers a seller the entire cost of the house, with no mortgage or any other type of financing involved. These offers are often more attractive to sellers, as they mean no buyer financing fall-through risk and, usually, a faster closing time.
- Cash FlowThe amount of money that is coming in and going out on a rental property. Positive cash flow means that more money is being earned than spent, while negative cash flow means more money is being spent than earned. Cash flow can be calculated by subtracting the total expenses from the gross income of your rental property.
- Cash On Cash ReturnThe annual before-tax cash flow of an investment expressed as a percentage of the initial cash invested.
- CoCThe annual before-tax cash flow of an investment expressed as a percentage of the initial cash invested.
- Cash-OutA loan or refinance transaction in which the borrower receives additional funds over and above the amount needed to repay the existing mortgage, closing costs, points, and any subordinate liens.
- Cash ReservesA requirement of many lenders that buyer have sufficient cash remaining after closing to make the first two mortgage payments and/or some amount of required improvements.