CAPS >> The maximum increase of an adjustable-rate mortgage period and lifetime. Example: The original loan is made at 10% with a 6% cap. The interest rate on the loan may never exceed 16%, regardless of index changes.

CASH FLOW >> The amount of cash generated from income-producing property or investments after all operating expenses and loan payments have been made.

CASH VALUE >> The amount of money one would receive today by selling an asset in the market place.

CASHIER’S CHECK >> A check drawn by a bank on itself rather than on an account of a depositor. A cashier’s check is generally acceptable to close a sale without waiting for the check to clear.

CASHIER?S CHECK >> A check drawn by a bank on itself rather than on an account of a depositor. A cashier?s check is generally acceptable to close a sale without waiting for the check to clear.

CASH-OUT >> A refinance transaction in which the borrower receives cash that may be used for any purpose.

CASH-OUT EXPLANATION LETTER >> A handwritten, signed and dated letter provided by customers who are receiving cash from the loan to explain how they intend to use that cash. Generally used to verify that borrowers aren’t planning to use the cash to incur additional debt that will add to their monthly obligations and decrease disposable monthly income.