Mortgage glossary

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Tax deed: a deed to a property purchased at a public sale.

Tax Lien: a claim against a property for due and unpaid taxes.

Tax Sale: the sale of a property, usually under a court order, to satisfy a tax lien. FFI mortgage glossary.

Tenancy: a legal written agreement between a landlord and tenant that sets out the terms of the rental.

Tenancy By Entirety: in some states, a type of joint ownership of property where a husband and wife are considered as one person, essentially providing an automatic right of survivorship.

Tenancy In Common: joint ownership by two or more persons. Each person has equal rights to the property but without any right of survivorship. Ownership does not pass to the others in the event of death.

Tenancy In Partnership: a form of ownership where the title is in the name of the partnership, rather than in the names of the individual partners. FFI mortgage glossary.

Term: the period of years over which you take the mortgage and repay it.

Term Assurance: an insurance policy designed to repay the mortgage on the death of the insured person. Level Term Assurance covers a principal sum throughout the policy term and pays out the full amount on death. Reducing Term Assurance is designed to repay the balance outstanding on a repayment type mortgage upon death. Term Assurance may also pay out early on the diagnosis of a terminal illness. FFI mortgage glossary.

Tie in Term: the period of time you would need to remain on certain mortgage terms to avoid an early repayment charge.

Title: also called a deed. This is the legal document that specifies who owns a particular property.

Title Company: a company that researches titles, the history of titles, liens, and encumbrances in order to make sure all entitlement to a property are fulfilled before the tile can be transferred to a new owner.

Title insurance: insurance that protects the lender against any claims that arise from arguments about ownership of the property; also available for homebuyers. FFI mortgage glossary.

Title search: a check of public records to be sure that the seller is the recognized owner of the real estate and that there are no unsettled liens or other claims against the property.

Townhouse: a form of ownership in real property similar to a condominium or cooperative. Generally, a series of residential units which share common walls with the adjacent units, but stand on individual lots. Owners have title to the unit and lot that they occupy. The common areas and the building exteriors are owned jointly. FFI mortgage glossary.

Transfer deed: a form which provides details of the transfer of ownership to be entered on the Land Registry register.

Transfer Tax, Transfer Fee: fees and taxes imposed by state and local governments when title passes from one owner to another.

Treasury indexes: a series of indexes which are used the basis for determining interest rate changes for many Adjustable Rate Mortgages.

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

Truth in Lending: a federal law obligating a lender to give full written disclosure of all fees, terms, and conditions associated with the loan initial period and then adjusts to another rate that lasts for the term of the loan. FFI mortgage glossary.

Two Step Mortgage (Balloon Reset): a form of Adjustable Rate Mortgage with a one-time rate adjustment at the end of either five of seven years. The rate then remains constant for the remaining 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.