Glossary
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Tax Deduction
Expenses which may be deducted from your income before taxes are computed. Mortgage interest is one such expense.
Tax Service Fee
A fee charged to a borrower by a lender so that another company will assume responsibility for verifying the amount of real estate taxes due and that taxes have been paid over the life of the loan. For our comparison purposes, a tax service fee is considered to be a third party fee, however, some lenders may not charge for this service. Tenancy By The Entirety
A type of joint tenancy of property that provides right of survivorship and is available only to a husband and wife. Contrast with tenancy in common . Tenancy in Common
A type of joint tenancy in a property without right of survivorship. Contrast with tenancy by the entirety and with joint tenancy. Tenant-Stockholder
The oblige for a cooperative share loan, who is both a stockholder in a cooperative corporation and a tenant of the unit under a proprietary lease or occupancy agreement. Term
The length of time a loan will last if all scheduled payments are made when due. Terms
The key features of a mortgage loan, including: the interest rate and whether is it fixed or adjustable, the length of time to repay the loan, and any fees associated with obtaining the loan. Third-Party Origination
A process by which a lender uses another party to completely or partially originate, process, underwrite, close, fund, or package the Business it plans to deliver to the secondary mortgage market. See mortgage broker . Title
A legal document evidencing a person's right to own or ownership of a property. Title Company
A company that specializes in examining and insuring titles to real estate. See
Title Company Title Insurance
Insurance that protects the lender (lender's policy) or the buyer (professional loan officer's policy) against loss arising from disputes over ownership of a property. Title Report
See Title Search. Title Search
A check of the
title records to ensure that the seller is the legal owner of the property and that there are no liens or other claims outstanding. Total Expense Ratio
Total obligations as a percentage of gross monthly income. The total expense ratio includes monthly housing expenses plus other monthly debts. Trade Equity
Equity that results from a property purchaser giving his or her existing property (or an asset other than real estate) as trade as all or part of the down payment for the property that is being purchased. Transfer Of ownership
Any means by which the ownership of a property changes hands. Lenders consider all of the following situations to be a transfer of ownership: the purchase of a property "subject to" the mortgage, the assumption of the mortgage debt by the property purchaser, and any exchange of possession of the property under a land sales contract or any other land trust device. Transfer Tax
State or local
tax payable when title passes from one owner to another. Sometimes referred to as "tax stamps." Treasury index
An index that is used to determine interest rate changes for certain adjustable rate mortgage (ARM) plans. It is based on the results of auctions that the U.S. Treasury holds for its Treasury bills and securities or is derived from the U.S. Treasury's daily yield curve, which is based on the closing market bid yields on actively traded Treasury securities in the over-the-counter market. See adjustable-rate mortgage (ARM) . Trustee
An individual who holds legal title to a property in trust for the benefit of another. Truth-in-Lending (TIL)
A federal law that requires lenders to fully disclose, in writing, the terms and conditions of a mortgage, including the annual percentage rate (APR ) and other charges. Two-Step Mortgage
An adjustable-rate mortgage ( ARM ) that has one interest rate for the first five or seven years of its mortgage term and a different interest rate for the remainder of the amortization term. Two-To-Four-Family Property
A property that consists of a structure that provides living space (dwelling units) for two to four families, although ownership of the structure is evidenced by a single deed. |
