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Cap

A limit, such as that placed on an adjustable rate mortgage, on how much a monthly payment or interest rate can increase or decrease.



Cash Reserves

A cash amount sometimes required to be held in reserve in addition to the down payment and closing costs; the amount is determined by the lender.


Certificate of Title

A document provided by a qualified source (such as a title company) that shows the property legally belongs to the current owner; before the title is transferred at closing, it should be clear and free of all liens or other claims.