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.
Truth in Lending Act: This is a federal law that requires lenders to show the terms of the mortgage loan to borrowers ahead of time so that the borrowers can shop for the best mortgage terms possible.
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.