Tax
As applied to real estate, an enforced charge
imposed on persons, property or income, to
be used to support the State. The governing
body in turn utilizes the funds in the best
interest of the general public.
Tax Assessed Value
The Tax Assessed Value (TAV) is the dollar
amount assigned to your property for the purposes
of taxation. The TAV is not necessarily the
market value of your home, but the TAV will
take into consideration your home's market
value, as well other factors, including your
property's tax class, maintenance costs, home
improvements, etc. The TAV is established
by the county's tax assessor who utilizes
features such as sales prices from surrounding
properties, location, condition and age of
the property to determine the TAV.
Term
The period of time between the beginning loan
date on the legal documents and the date the
entire balance of the loan is due.
Term Mortgage
Usually a short-term fixed-rate loan which
involves small payments for a certain period
of time and one large payment for the remaining
amount of the principal at a specific time.
Also known as Balloon Payment Mortgage.
Third Party Fees
These are fees charged by vendors to perform
services related to your loan, such as title
search, mortgage recording and settlement.
Third party fees contribute to the total amount
of the loan's closing costs. See Closing Costs
for more information.
Title
A document that gives evidence of an individual's
ownership of property.
Title Insurance
A policy, usually issued by a Title Insurance
company, which insures a homebuyer against
errors in the title search. The cost of the
policy is usually a function of the value
of the property, and is often borne by the
purchaser and/or seller.
Title Search
An examination of municipal records to determine
the legal ownership of property. Usually is
performed by a title company.
Treasury Index
These ARMs are indexed to treasury bills or
securities. Depending on the ARM, the rate
will adjust every 6 months, every year, or
every 3 years.
Trustee
A party who is given legal responsibility
to hold property in the best interest of or
"for the benefit of" another. The
trustee is one placed in a position of responsibility
for another, a responsibility enforceable
in a court of law.
Truth-in-Lending
A federal law requiring disclosure of the
Annual Percentage Rate to homebuyers shortly
after they apply for the loan.
Two-Step Mortgage
A mortgage in which the borrower receives
a below-market interest rate for a specified
number of years (most often seven or 10 years),
and then receives a new interest rate adjusted
(within certain limits) to market conditions
at that time. The lender sometimes has the
option to call the loan, due within 30 days
notice at the end of seven or 10 years. Also
called "Super Seven" or "Premier"
mortgage.
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