T-Z
Teaser rate
An low, short-term rate offered on a mortgage to entice the borrower.
Timeshare
Ownership that involves the acquisition of a specific period of time, or that percentage of interest, in a vacation home or resort.
Title
The actual legal document conferring ownership of a piece of real estate.
Title company
Firms that ensure that the title to a piece of property is clear and provide title insurance.
Title insurance
A policy issued to lenders and buyers to protect any losses because of a dispute over the ownership of a piece of property.
Total expense ratio
The percentage of monthly debt obligations relative to gross monthly income.
Townhouse
An attached home that is not a condominium.
Tract home
Another term for a production home, a mass-produced house constructed by one builder in a project.
Transfer of ownership
Any legal means by which a piece of real estate changes hands.
Truth-in-Lending Act
A federal law that protects consumers in a variety of ways. One of its key provisions allows a consumer to cancel a home-improvement loan, second mortgage or other loan if the home was pledged as security (except for a first mortgage or first trust deed) until midnight of the third business day after the contract was signed.
Two-step mortgage
An adjustable mortgage with two interest rates, one for the first five or seven years of the loan, and the other for the remainder of the loan term.
Underwriting
The process that lenders go through to evaluate the risks posed by a particular borrower and to set appropriate conditions for the loan.
U.S. Department. of Housing and Urban Development (HUD)
A federal agency that oversees the Federal Housing Administration and a variety of housing and community development programs.
Unsecured loan
Any loan that is not backed by collateral.
Variable rate
An interest rate that changes with fluctuations in such indexes as the U.S. Treasury bill index.
Verification of deposit
Part of the loan process, in which a lender will ask a borrower’s bank to sign a statement verifying the borrower’s account balances and history.
Verification of employment
Part of the loan process, in which a lender asks the borrower’s employer for confirmation of the borrower’s position and salary.
Veterans Administration (VA)
The U.S. Department of Veterans Affairs operates a variety of programs to help veterans. One of the key plans it oversees is the VA loan program, which allows most veterans to purchase a house without a down payment.
VA loan
A program that allows most veterans to purchase a house without a down payment.
Wraparound mortgage
A loan to a buyer for the remaining balance on a seller’s first mortgage and an additional amount requested by the seller. Payments on both loans are made to the lender who holds the wraparound loan.
