T
tenancy by the entirety
A type of joint tenancy of property that provides right of survivorship and is available only to a
husband and wife. Contrast with tenancy in common.
tenancy in common
A type of joint tenancy in a property without right of survivorship. Contrast with tenancy by the entirety
and with joint tenancy.
tenant-stockholder
The obligee for a cooperative share loan, who is both a stockholder in a cooperative corporation and
a tenant of the unit under a proprietary lease or occupancy agreement.
third-party origination
A rocess 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. See mortgage broker.
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.
total expense ratio
Total obligations as a percentage of gross monthly income. The total expense ratio includes monthly
housing expenses plus other monthly debts.
trade equity
Equity that results from a property purchaser giving his or her existing property (or an asset other
than real estate) as trade as all or part of the down payment for the property that is being purchased.
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. In cases in
which an inter vivos revocable trust is the borrower, lenders also consider any transfer of a beneficial
interest in the trust to be a transfer of ownership.
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. See
adjustable-rate mortgage (ARM).
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.
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.
U
underwriting
The process of evaluating a loan application to determine the risk involved for the lender.
Underwriting involves an analysis of the borrower's creditworthiness and the quality of the property
itself.
unsecured loan
A loan that is not backed by collateral.
V
VA mortgage
A mortgage that is guaranteed by the Department of Veterans Affairs (VA). Also known as a
government mortgage.
vested
Having the right to use a portion of a fund such as an individual retirement fund. For example,
individuals who are 100 percent vested can withdraw all of the funds that are set aside for them in a
retirement fund. However, taxes may be due on any funds that are actually withdrawn.
Department of Veterans Affairs (VA)
An agency of the federal government that guarantees residential mortgages made to eligible
veterans of the military services. The guarantee protects the lender against loss and thus
encourages lenders to make mortgages to veterans.
W
what-if analysis
An affordability analysis that is based on a what-if scenario. A what-if analysis is useful if you do not
have complete data or if you want to explore the effect of various changes to your income, liabilities,
or available funds or to the qualifying ratios or down payment expenses that are used in the analysis.
what-if scenario
A change in the amounts that is used as the basis of an affordability analysis. A what-if scenario can
include changes to monthly income, debts, or down payment funds or to the qualifying ratios or down
payment expenses that are used in the analysis. You can use a what-if scenario to explore different
ways to improve your ability to afford a house.
wraparound mortgage
A mortgage that includes the remaining balance on an existing first mortgage plus an additional
amount requested by the mortgagor. Full payments on both mortgages are made to the wraparound
mortgagee, who then forwards the payments on the first mortgage to the first mortgagee.
tenancy by the entirety
A type of joint tenancy of property that provides right of survivorship and is available only to a
husband and wife. Contrast with tenancy in common.
tenancy in common
A type of joint tenancy in a property without right of survivorship. Contrast with tenancy by the entirety
and with joint tenancy.
tenant-stockholder
The obligee for a cooperative share loan, who is both a stockholder in a cooperative corporation and
a tenant of the unit under a proprietary lease or occupancy agreement.
third-party origination
A rocess 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. See mortgage broker.
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.
total expense ratio
Total obligations as a percentage of gross monthly income. The total expense ratio includes monthly
housing expenses plus other monthly debts.
trade equity
Equity that results from a property purchaser giving his or her existing property (or an asset other
than real estate) as trade as all or part of the down payment for the property that is being purchased.
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. In cases in
which an inter vivos revocable trust is the borrower, lenders also consider any transfer of a beneficial
interest in the trust to be a transfer of ownership.
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. See
adjustable-rate mortgage (ARM).
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.
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.
U
underwriting
The process of evaluating a loan application to determine the risk involved for the lender.
Underwriting involves an analysis of the borrower's creditworthiness and the quality of the property
itself.
unsecured loan
A loan that is not backed by collateral.
V
VA mortgage
A mortgage that is guaranteed by the Department of Veterans Affairs (VA). Also known as a
government mortgage.
vested
Having the right to use a portion of a fund such as an individual retirement fund. For example,
individuals who are 100 percent vested can withdraw all of the funds that are set aside for them in a
retirement fund. However, taxes may be due on any funds that are actually withdrawn.
Department of Veterans Affairs (VA)
An agency of the federal government that guarantees residential mortgages made to eligible
veterans of the military services. The guarantee protects the lender against loss and thus
encourages lenders to make mortgages to veterans.
W
what-if analysis
An affordability analysis that is based on a what-if scenario. A what-if analysis is useful if you do not
have complete data or if you want to explore the effect of various changes to your income, liabilities,
or available funds or to the qualifying ratios or down payment expenses that are used in the analysis.
what-if scenario
A change in the amounts that is used as the basis of an affordability analysis. A what-if scenario can
include changes to monthly income, debts, or down payment funds or to the qualifying ratios or down
payment expenses that are used in the analysis. You can use a what-if scenario to explore different
ways to improve your ability to afford a house.
wraparound mortgage
A mortgage that includes the remaining balance on an existing first mortgage plus an additional
amount requested by the mortgagor. Full payments on both mortgages are made to the wraparound
mortgagee, who then forwards the payments on the first mortgage to the first mortgagee.
| Real Estate and Loan Glossary of Terms |
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| Capital Real Estate and Loans Nannette Truong Kazan, Broker-Real Estate Specialist |
| Cell: 714 478-4940 |
| Fax: 949 266-8911 |
| Office: 949 679-3400 |
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