T

Tax Deduction
We can reduce the amount of income tax due the government by reducing the gross amount on which our tax is calculated (Taxable income). The government allows us to reduce our taxable income by taking legitimate and IRS defined Tax Deductions. These defined Tax Deductions include all the interest and Property Taxes we pay.

Tax Savings
When a home buyer moves from renting a home to owning a home, they will probably experience greater Tax Deductions. Where Qualified, they may also receive Tax Credits. This can substantially reduce the income tax owed to the government by the home buyer By filing a new “W-4” form with their employer, the borrower can receive these Tax Savings, which may be several hundred dollars each month, right in their pay checks.

Tenancy in common
As opposed to joint tenancy, when there are two or more individuals on title to a piece of property, this type of ownership does not pass ownership to the others in the event of death.

Third-party origination
A process by which a lender uses another party to completely or partially originate, process, underwrite, close, fund, or package the mortgages it plans to deliver to the secondary mortgage market.

Title
A legal document evidencing a person's right to or ownership of a property.

Title company
A company that specializes in examining and insuring titles to real estate.

Title insurance
Insurance that protects the lender (lender's policy) or the buyer (owner's policy) against loss arising from disputes over ownership of a property.

Title search
A check of the title records to ensure that the seller is the legal owner of the property and that there are no liens or other claims outstanding.

Transfer of ownership
Any means by which the ownership of a property changes hands. Lenders consider all of the following situations to be a transfer of ownership: the purchase of a property "subject to" the mortgage, the assumption of the mortgage debt by the property purchaser, and any exchange of possession of the property under a land sales contract or any other land trust device.

Transfer tax
State or local tax payable when title passes from one owner to another.

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.

Truth-in-Lending
A federal law that requires lenders to fully disclose, in writing, the terms and conditions of a mortgage, including the annual percentage rate (APR) and other charges.

Trust Deed
When a lender makes a loan on real estate they record a Trust Deed with the county recorder’s office. The Trust Deed is a document showing a lien against the property by a lender so when the property is transferred or sold, the lender is sure to be repaid. This is similar to a lien holder on a pink slip for a car.

Two-step mortgage
An adjustable-rate mortgage (ARM) that has one interest rate for the first five or seven years of its mortgage term and a different interest rate for the remainder of the amortization term.

Two- to four-family property
A property that consists of a structure that provides living space (dwelling units) for two to four families, although ownership of the structure is evidenced by a single deed.

Trustee
A fiduciary who holds or controls property for the benefit of another.