Loan Services: Mortgage Loans
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Take-out loan
The long-term financing of a property after construction is finished
Take-out loans work together with construction loans. Take-out loans are also called permanent end loans.
See: Blanket mortgage, Construction loan
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Teaser rate
An initial interest rate below the market standard on an adjustable rate mortgage (ARM)
See: Initial interest rate
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Tenancy in common
An undivided ownership of a property by two or more people where the ownership is not necessarily equal
Even though the owners of a tenancy in common property can have unequal shares of the property, they all have the right to use the entire property. Tenancy in common does not have right of survivorship, meaning that in the event of death, ownership is passed to the previous owner’s heir(s) not to the co-owner.
Compare: Joint tenancy
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Third party fees
Fees charged for services rendered by parties other than the borrower or the lender
Such fees may include appraisal, credit report, title and flood certifications.
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Title
Evidence of ownership of a property
If you hold the title to a property, that means you have the right to own it. Sometimes title can refer to the documents, such as a deed, which prove you own a property. Title documents are on public record at the county courthouse.
See: Deed
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Title insurance
Insurance to protect against loss due to title disputes
Most lenders require title insurance. Depending on where you live, you may have to pay for both your policy and the lender's policy. You pay this one-time fee on the closing date. Title insurance may cover the charge to oversee closing, conduct the title search, and the premium. If you refinance your mortgage, you will need to buy the lender's title insurance.
See: Title search
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Title insurance company
A company that insures against loss due to a title dispute
Before the closing date of your home's purchase or sale, a title company will search and collect all the public records of a property's ownership. The title company checks these records to find out who the legal owner is and to locate any claims against the property. If everything is clear, the title company will provide the buyer and/or lender with title insurance.
See: Title, Title search, Title insurance
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Title report
The results from a title search showing the condition of title
Sometimes, the title insurance company conducts a second title search before closing and gives a title report. This report ensures that there are no claims on the property and that the seller is the legal owner of the property. All claims must be cleared before you can buy the property.
See: Preliminary title report, Cloud on title
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Title search
A search of public records conducted by a title company to confirm a property’s owner and to discover any claims on the property
Before you close on your home, a title company will search public records on the property's ownership. The title company wants to make sure that the seller is the actual owner of the property and that the property is free from any claims.
See: Title report, Title insurance, Cloud on title
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Trailing spouse income
You or your spouse's expected income when changing jobs or relocating to a new location that is used in qualifying for a mortgage loan
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Transfer of ownership
The shifting of ownership on a property from seller to buyer
See: Real property, Deed
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Transfer tax
A state tax on the transfer of property
The calculation rules on transfer taxes are usually based on the property's purchase price. Some cities will also add a tax on top of the transfer tax.
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Trustee's sale
When a lender sells a property to pay for a mortgage that was not repaid
Most deed of trusts have a "power of sale" clause, giving the trustee, a neutral party who acts on behalf of the lender, the right to a trustee's sale. Normally, the trustee advertises the property's sale and then auctions off the property to the highest bidder. Some mortgages contain a power of sale clause, giving the lender the right to foreclose without a court decision.
See: Foreclosure, Deed of trust
Compare: Judicial foreclosure
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