Home Loan Glossary – T

Tenancy By The Entirety: This type of property ownership, a form of joint tenancy, offers right of survivorship and is provided only to spouses. If one spouse dies, the rights to the property go to the surviving spouse. Contrast this with Tenancy In Common and Joint Tenancy.
Tenancy In Common: This is a form of co-ownership in a property that does not include right of survivorship. Compare to Tenancy By The Entirety and Joint Tenancy.
Third Party Fees: Third party fees are charges collected by lenders for the services offered by another party, such as an appraiser.
Third Party Origination: This describes a lender's use of another party—for example, a mortgage broker--to perform some or all of the services needed to produce a home loan which the lender ultimately funds. This can include taking the application, processing, underwriting, or closing the loan, for example. See Mortgage Broker.
Title: A title is a legal document verifying an individual's ownership of, or right to, a property.
Title Company: A title company is a firm that specializes in examining and insuring titles to real estate.
Title Insurance: Title insurance safeguards the lender (through a lender's policy) or the buyer (through an owner's policy) against any losses arising as result of disputes over property ownership.
Title Search: A title search confirms the validity of a property's title records. It is carried out to ensure that the seller is the legal owner of the property, and that there are no outstanding claims or liens against the property.
Total Expense Ratio: A total expense ratio expresses an individual's total financial commitments as a percentage of gross monthly income. The ratio takes monthly housing costs and other monthly expenses into account. The total expense ratio is one of the ratios used to assess whether an individual qualifies for a home loan.
Transaction Fee: A transaction fee is the amount of money a borrower is charged each time he or she makes a withdrawal on a line of credit.
Transfer Of Ownership: Transfer of ownership refers to any way in which the ownership of a property changes hands. The following situations are all considered, by lenders, to be transfer of ownership: the buying of a property "subject to" the mortgage; the assumption of the mortgage debt by the purchaser of the property; and any transfer of possession of the property under a land trust device or a land sales contract. If the borrower has a family trust, lenders also regard any transfer of a valuable interest in the trust as a transfer of ownership.
Transfer Tax: Transfer tax is local or state tax charged when ownership of a property changes hands.
Treasury Index: The treasury index is a published interest rate used to calculate interest rate changes for some adjustable rate mortgage (ARM) home loans. It is based on the auctions of U.S. Treasury bills, or on the U.S. Treasury's daily yield curve. See Adjustable Rate Mortgage (ARM).
Truth-In-Lending: This is a federal law that states that lenders must fully disclose in writing the terms and conditions of credit, such as a mortgage, and list all the expenses the borrower will be expected to pay, including the annual percentage rate (APR).
Two- To Four-Family Property: This is a property structured to provide housing for two to four families. Ownership of the structure, however, falls under a single deed. See Multi-Dwelling Units.
Trustee: A trustee is an individual who manages or holds a property for the benefit of another individual.