Glossary of Mortgage Terms
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. A mortgage.
- 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.