Buy Down Payment of additional points to lower the interest rate of the loan. CAP Limit on the amount an adjustable rate mortgage may increase or decrease during specific intervals and over the term of the loan. This safeguard protects the buyer from dramatic changes in monthly payments. Capital Gain Taxable profit derived from the sale of a capital asset. The capital gain is the difference between the sale price and the basis of the property, after making appropriate adjustments for closing costs, fixing up expenses, capital improvements, allowable depreciation, etc.
Closing Is the act of transferring ownership of a property from the seller to the buyer.
Usually the last step in buying a property. Documents are signed, the balance of the loan costs are calculated, funds are disbursed and the transaction is completed. Closing costs may be paid by the buyer, the seller or shared by both. In some cases, all or a portion of these costs may be included in the financing amount. Loan A mortgage that finances the construction of a home and converts to permanent financing when the home is completed.