Tax Impound: See Escrow Account

Tax Lien: Claim against a property for unpaid taxes.

Tax Sale: Public sale of property by a government authority as a result of non-payment of taxes.

Tax Service Fee: Fee paid to a tax service company to track your property tax payments after your loan funds. Since we will have a security interest in your property, we must ensure that property taxes are paid in a timely manner, to avoid liens.

Term: The number of years it will take to pay off a loan.

Third Party Fees: Fees collected by lender for services provided by other companies, such as an appraiser.

Third-Party Origination: A process by which a lender uses another party to completely or partially originate, process, underwrite, close, fund, or package the home loan. See mortgage broker.

Title: Document which gives evidence of ownership of a property and the rights of ownership and possession of that property.

Title Company: A company that insures title to property.

Title Insurance: Insurance which protects the lender (lender’s policy) or the buyer (owner’s policy) against loss due to disputes over ownership of a property.

Title Search: Examination of municipal records to ensure that the seller is the legal owner of a property and that no liens or other claims exist against the property.

Total Expense Ratio: Total obligations as a percentage of gross monthly income. The total expense ratio includes monthly housing expenses plus other monthly debts. Used to help qualify a potential borrower for a home loan.

Transfer Tax: Tax paid when title passes from one owner to another. Not applicable in all jurisdictions.

Transaction Fee: A fee charged each time the borrower draws on the credit line.

Treasury Index: An index that is used to determine interest rate changes for certain adjustable-rate mortgage (ARM) plans. It is based on the results of auctions that the U.S. Treasury holds for its Treasury bills and securities or is derived from the U.S. Treasury's daily yield curve, which is based on the closing market bid yields on actively traded Treasury securities in the over-the-counter market. See adjustable-rate mortgage (ARM).

Trust Account: Account maintained by a broker or escrow company to handle all money collected for clients.

Trustee: Someone given legal responsibility to hold property in the best interest of another.

Truth-In-Lending Act: Federal law requiring written disclosure of the terms of a mortgage by a lender to a prospective borrower within three business days of application.

Two-Step Mortgage: Mortgage with a low fixed interest rate for 5, 7, or 10 years, which is then adjusted to a new rate for the rest of the loan.