| Term |
Definition |
| Tax |
As applied to
real estate, an enforced charge imposed on persons, property
or income, to be used to support the State. The governing
body in turn utilizes the funds in the best interest of the
general public. |
| Term
|
The period of
time between the beginning loan date on the legal documents
and the date the entire balance of the loan is due. |
| Term
Mortgage |
Usually a
short-term fixed-rate loan which involves small payments for
a certain period of time and one large payment for the
remaining amount of the principal at a specific time. Also
known as Balloon Payment Mortgage. |
| Third
Party Fees |
These are
fees charged by vendors to perform services related to your
loan, such as title search, mortgage recording and
settlement. Third party fees contribute to the total amount
of the loan's closing costs. See Closing Costs for more
information. |
| Title
|
A document
that gives evidence of an individual's ownership of
property. |
| Title
Insurance |
A policy,
usually issued by a Title Insurance company, which insures a
homebuyer against errors in the title search. The cost of
the policy is usually a function of the value of the
property, and is often borne by the purchaser and/or seller.
|
| Title
Search |
An
examination of municipal records to determine the legal
ownership of property. Usually is performed by a title
company. |
| Treasury
Index |
These ARMs
are indexed to treasury bills or securities. Depending on
the ARM, the rate will adjust every 6 months, every year, or
every 3 years. |
| Trustee
|
A party who
is given legal responsibility to hold property in the best
interest of or "for the benefit of" another. The trustee is
one placed in a position of responsibility for another, a
responsibility enforceable in a court of law. |
|
Truth-in-Lending |
A federal law
requiring disclosure of the Annual Percentage Rate to
homebuyers shortly after they apply for the loan.
|
| Two-Step
Mortgage |
A mortgage in
which the borrower receives a below-market interest rate for
a specified number of years (most often seven or 10 years),
and then receives a new interest rate adjusted (within
certain limits) to market conditions at that time. The
lender sometimes has the option to call the loan, due within
30 days notice at the end of seven or 10 years. |
