FHA Loan and Mortgage Glossary - Terms Beginning with 'T'

  • Tenants-In-Common: This is when two or more people have an interest in a property.
  • Term: This is the amount of time that a mortgage loan is in duration. There are various terms for different mortgages and can be up to 40 years in length.
  • Title: This is the recorded proof that a property legally belongs to a specific person or entity.
  • Title 1: This is the program through the FHA that allows borrowers to get a loan for necessary home improvements.
  • Title Insurance: This is the insurance that guarantees a buyer and their lender are protected from loss due to unexpected or overlooked liens or encumbrances on the tile of a property.
  • Title Search: This is what a title company performs in order to determine what liens and encumbrances are on a property so that it can be paid and cleared for sale to a new owner.
  • Total Debt Ratio: This is the ratio that results from taking a borrower's monthly debt amount including housing payment, and dividing this amount by their total monthly income.
  • Two Step Mortgage: This is also known as a Premier mortgage. This is the type of mortgage where the lender gets a low interest rate for a specified period of time and then the interest rate is adjusted to current market rates or called in for full payment.