T

• TAX BRACKET: Marginal rate for income taxes. It is the percentage of each additional dollar in income required to be paid as income taxes.
• TEASER RATE: Interest rate charged on an adjustable-rate mortgage for the initial adjustment interval that is usually much lower than the fully indexed rate. The Teaser Rate is an incentive to encourage borrowers to accept an adjustable-rate mortgage loan. Usually, the interest rate jumps back to the indexed rate at the adjustment date.
• TERM: The period of time during which principal and interest payments must be made on a regular basis.
• TITLE: This is evidence that you actually have the right of ownership of real property. It takes the form of a deed that specifies the kind of title you have (whether joint, common, or some other).
• TITLE INSURANCE POLICY: An insurance policy that covers the title to your home. It may list you or the lender as a beneficiary. This policy is issued by a title insurance company, or by an attorney (underwritten by an insurance company). The policy states that if for any covered reason your title is defective, the company will correct the title or pay you up to a specified amount (usually the purchase price or mortgage). Before issuing this policy, an insurance company fully investigates the chain of title and notifies all parties of any defect (such as liens). These must then be paid off.
• TRANSACTION COSTS: Costs associated with buying and selling a home. These include: Appraisal Fee, Brokerage Commission (paid by the seller), Legal Fees, Mortgage Discount Points, Mortgage Origination Fees, Recording Fees, Survey Fees, and Title Search Fees.

• VA LOANS: Home loans guaranteed by the Veterans Administration (VA) under the Servicemen's Readjustment Act of 1944 and its later revisions. The VA guarantees payment to the lender in case of default. The home must be the buyer's principal place of residence.

• WRAP-AROUND OR WRAP FINANCING: This is a combination of two mortgages. If the lender is the seller, then he does not get all cash. Instead of giving the buyer/borrower a simple second mortgage, the lender combines the balance due on a previous, existing mortgage (usually a first) with an additional loan. In this way, the wrap-around includes both the second and the first mortgages. The borrower then makes payments to the lender, who keeps part of the payment, and then makes payments on the existing mortgage. The wrap is typically used by a seller who either does not trust the buyer to make payments on a first, or who wants to get a higher interest rate.

Click HERE For A FREE Mortgage Loan Quote!

Next: FREQUENTLY ASKED QUESTIONS