capital gains Income from the sale of an asset rather than from the general business activity. Capital gains are generally taxed at a lower rate than ordinary income. capital improvement Any structure or component erected as a permanent improvement to real property that adds to its value and useful life.
cash reserves Amount in cash after purchase is complete i.e., after down payment, closing costs, etc.. cash-out refinance A refinance transaction in which the amount of money received from the new loan exceeds the total of the money needed to repay the existing first mortgage, closing costs, points, and the amount required to satisfy outstanding subordinate mortgage liens.