Mortgage and Loan Glossary (T)
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tacking
Adding on to a certain period of time.
takeout financing
A firm commitment to provide permanent long-term financing after a
construction project is completed.
taking
The acquisition of a piece of land, usually through condemnation.
tangible property
Real estate and other property of value which can be seen and touched.
tax base
The total value of property, income, or other taxable assets subject
to taxation.
tenancy by the entirety
Type of joint tenancy that provides the right of survivorship and is
available only to a husband and wife. Compare with tenancy in common.
tenancy in common
Type of joint tenancy without the right of survivorship. Compare with
tenancy by the entirety and with joint tenancy.
termite inspection
A property inspection that looks for damage caused by any kind of organism,
including termites, beetles, and mold.
third-party origination
An arrangement whereby a lender uses another party (often a mortgage
broker) to originate, process, underwrite or package the mortgages
it plans to sell to the secondary mortgage market.
title
A legal written instrument evidencing a person's lawful possession
of a property.
title company
A company that specializes in examining titles to real estate and issuing
title insurance.
title insurance
Type of insurance that protects the lender (lender's policy) or the
buyer (owner's policy) against loss sustained from disputes over
property ownership or defects in the title.
title search
An examination of the public title records to determine the legal ownership
of a property, and to ensure that there are no liens, encumbrances
or other claims outstanding.
total expense ratio
Total monthly debt obligations expressed as a percentage of gross monthly
income. This ratio includes monthly housing expenses (PITI), plus
other monthly obligations.
trade equity
Equity that results from a buyer giving existing property as trade
for all, or part of, the down payment on the subject property.
transfer of ownership
Any legal method by which the ownership of property changes hands.
transfer tax
A local and/or state tax payable when title passes from one owner to
another.
Treasury bill
Negotiable, short-term U.S. Government debt obligation with a maturity
of one year or less, issued at a discount from face value.
Treasury bond
Negotiable, long-term U.S. Government debt obligation with a maturity
of ten years or longer, issued in minimum denominations of $1,000.
Treasury index
An index that is used to determine interest rate changes for some adjustable-rate
mortgage (ARM) programs. It is often based on the U.S. Treasury's
daily yield curve.
Treasury note
An intermediate U.S. Government security with a maturity of 1 to 10
years. Denominations range from $1,000 to $1 million or more. The
notes are sold by cash subscription, in exchange for outstanding
or maturing government issues, or at auction.
trust deed
The legal document that transfers ownership of a piece of property.
trustee
A person or company that controls ownership of a property for the benefit
of another party. In the case of a deed of trust, the trustee holds
the property title for the lender, and is responsible for enforcing
the terms of the deed of trust.
Truth-in-Lending
A federal law that requires lenders to provide full written disclosure
of the terms and conditions of a mortgage, including the annual percentage
rate (APR) and other fees. Often referred to as federal Regulation
Z.
two-step mortgage
A type of adjustable-rate mortgage (ARM) that has one interest rate
for the first few years (typically 5 or 7), and a different rate
for the remainder of the amortization term.