GLOSSARY

This glossary is Alphabetical please choose your letter below.

A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

 

t

Tax Lien
A claim against property for unpaid taxes.

 

Teaser Rate
The initial interest rate on an ARM, when it is below the fully indexed rate.

 

Temporary Buy Down
A reduction in the mortgage payment in the early years of the loan in exchange for an upfront cash payment provided by the home buyer, the seller, or both.

 

Temporary Lender
A lender that sells the loans it originates, as opposed to a portfolio lender who holds them.

 

Tennancy
The use of real estate under any kind of right of title.

 

Term
The period used to calculate the monthly mortgage payment. The term is usually but not always the same as the maturity. On a 7-year balloon loan, for example, the maturity is 7 years but the term in most cases is 30 years.

 

Title 1
An FHA-insured loan that allows a borrower to make non-luxury improvements (like renovations or repairs) to their home; Title I loans less than $7,500 don't require a property lien.

 

Title
A document that gives evidence of an individual's ownership of property.

 

Title Company
A company that confirms the legal owner of a property, as well as insures a home owner and lender against a loss that could result from a title dispute. Also called title insurance company.

 

Title Insurance
A policy, usually issued by a title insurance company which insures a home buyer or lender against errors in the title search. The cost of the policy is usually a function of the value of property, and is often borne by the purchaser and /or seller.

 

Title Insurance Policy
A contract in which an insurer, usually a title insurance company, agrees to pay the insured party a specific amount for any loss caused by defects of title on real estate in which the insured has an interest as purchaser, mortgagee, or otherwise.

 

Title Search
An examination of municipal records to determine the legal ownership of the property. Usually is performed by a title company.

 

Torrens Certificate
A certificate issued by a public authority called a registrar of titles, establishing title of an indicated owner. Used when title to property is registered under the Torrens system of land registration.

 

Total Interest Payments
The sum of all interest payments to date or over the life of the loan.

 

Total Expense Ratio
The ratio of housing expense plus current debt service payments to borrower income, which is used (along with the housing expense ratio and other factors) in qualifying borrowers.

 

Transfer Agent
A bank or trust company charged with keeping a record of a company's stockholders and canceling and issuing certificates as shares are bought and sold.

 

Transfer Tax
State or local tax payable when the title passes from one owner to another.

 

Trust Deed
The instrument given by a borrower (trustor) to a trustee vesting title to a property in the trustee to ensure the borrower's fulfillment of an obligation.

 

Truth-in-Lending
A federal law requiring disclosure of the Annual Percentage Rate to home buyers shortly after they apply for a the loan. Also called truth in lending act.