Understand the most important lending and mortgage terms. Mortgages can be confusing for the first time home buyer, so let us help explain. Below you'll find explanations for most of the mortgage industry terms.

What is Tax impound? Money paid to and held by a lender for annual tax payments. See Impound…
Written by Henry Gilbert
What is Tax lien? Claim against a property for unpaid…
Written by Henry Gilbert
What is Tax sale? Public sale of property by a government authority as a result of nonpayment of…
Written by Henry Gilbert
What is Term? The number of years until a loan is due to be paid in…
Written by Henry Gilbert
What is Third-party Origination? When 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…
Written by Henry Gilbert
What is Title? A document that gives evidence of ownership of a property, as well as rights of ownership and…
Written by Henry Gilbert
What is Title company? A company that insures the title to a…
Written by Henry Gilbert
What is Title search? Examination of municipal records to ensure that the seller is the legal owner of a property and that there are no liens other claims against the…
Written by Henry Gilbert
What is Total Expense Ratio? Total obligations as a percentage of gross monthly income including monthly housing expenses plus other monthly…
Written by Henry Gilbert
What is Transfer tax? Tax paid when a title passes from one owner to…
Written by Henry Gilbert
What is Treasury Index? An index used to determine interest rate changes for certain adjustable-rate mortgage (ARM) plans. Based on the results of auctions that the U.S. Treasury holds for its Treasury bills and securities…
Written by Henry Gilbert
What is Trust account? An account maintained by a broker or escrow company to handle all money collected for…
Written by Henry Gilbert
What is Trustee? Someone given legal responsibility to hold property in the best interest of…
Written by Henry Gilbert
What is 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…
Written by Henry Gilbert
What is Two-step Mortgage? An adjustable-rate mortgage (ARM) with 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…
Written by Henry Gilbert


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