| 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. |
| 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. |
| 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.
Also called "Super Seven" or "Premier" mortgage.
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