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| • | 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. |
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| • | Tax Assessed Value - The Tax Assessed Value (TAV) is the dollar amount assigned to your property for the purposes of taxation. The TAV is not necessarily the market value of your home, but the TAV will take into consideration your home's market value, as well other factors, including your property's tax class, maintenance costs, home improvements, etc. The TAV is established by the county's tax assessor who utilizes features such as sales prices from surrounding properties, location, condition and age of the property to determine the TAV. |
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| • | Tax Lien - A claim against real estate for the amount of its unpaid taxes. |
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| • | Teaser Rate - Similar to a Payment Discount, but implies either an unusually large initial rate discount or an attempt by the lender to lure an otherwise unqualified borrower into the mortgage. |
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| • | 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. |
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| • | 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. |
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| • | Tenant-Stockholder - The obligee 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. |
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| • | 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. |
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| • | 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. |
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| • | 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. |
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| • | Third-party origination - A process by which a lender uses another party to completely or partially originate, process, underwrite, close, fund, or package the mortgages it plans to deliver to the secondary mortgage market. |
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| • | Title - A document that gives evidence of an individual's ownership of property. |
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| • | Title Company - A company that specializes in examining and insuring titles to real estate. |
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| • | 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. |
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| • | Title Search - An examination of municipal records to determine the legal ownership of property. Usually is performed by a title company. |
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| • | Title Search or Examination - A check of the title records, generally at the local courthouse, to make sure the buyer is purchasing a house from the legal owner and there are no liens, overdue special assessments, or other claims or outstanding restrictive covenants filed in the record, which would adversely affect the marketability or value of title. |
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| • | Total Debt Ratio - Monthly debt and housing payments divided by gross monthly income. Also known as Back-End Ratio. |
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| • | Total expense ratio - Total obligations as a percentage of gross monthly income. The total expense ratio includes monthly housing expenses plus other monthly debts. |
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| • | 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. |
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| • | 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. In cases in which an inter vivos revocable trust is the borrower, lenders also consider any transfer of a beneficial interest in the trust to be a transfer of ownership. |
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| • | Transfer tax - State or local tax payable when title passes from one owner to another. |
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| • | 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. |
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| • | 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. |
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| • | Truth-in-Lending - A federal law requiring disclosure of the Annual Percentage Rate to homebuyers shortly after they apply for the loan. |
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| • | 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. |
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| • | 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. Also called "Super Seven" or "Premier" mortgage. |
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