Tax - As applied to real estate, an enforced charge imposed on persons, property or income, to be used to support the State. The governing body in turn utilizes the funds in the best interest of the general public.

Tax Assessed Value - The Tax Assessed Value (TAV) is the dollar amount assigned to your property for the purposes of taxation. The TAV is not necessarily the market value of your home, but the TAV will take into consideration your home's market value, as well other factors, including your property's tax class, maintenance costs, home improvements, etc. The TAV is established by the county's tax assessor who utilizes features such as sales prices from surrounding properties, location, condition and age of the property to determine the TAV.

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.

Term - The period of time between the beginning loan date on the legal documents and the date the entire balance of the loan is due.

Term Mortgage - Usually a short-term fixed-rate loan which involves small payments for a certain period of time and one large payment for the remaining amount of the principal at a specific time. Also known as Balloon Payment Mortgage.

Third Party Fees - These are fees charged by vendors to perform services related to your loan, such as title search, mortgage recording and settlement. Third party fees contribute to the total amount of the loan's closing costs. See Closing Costs for more information.

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 document that gives evidence of an individual's ownership of property.

Title Insurance - A policy, usually issued by a Title Insurance company, which insures a homebuyer against errors in the title search. The cost of the policy is usually a function of the value of the property, and is often borne by the purchaser and/or seller.

Title Search - An examination of municipal records to determine the legal ownership of property. Usually is performed by a title company.

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 - These ARMs are indexed to treasury bills or securities. Depending on the ARM, the rate will adjust every 6 months, every year, or every 3 years.

Trustee - A party who is given legal responsibility to hold property in the best interest of or 'for the benefit of' another. The trustee is one placed in a position of responsibility for another, a responsibility enforceable in a court of law.

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

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- 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.

Two-Step Mortgage - A mortgage in which the borrower receives a below-market interest rate for a specified number of years (most often seven or 10 years), and then receives a new interest rate adjusted (within certain limits) to market conditions at that time. The lender sometimes has the option to call the loan, due within 30 days notice at the end of seven or 10 years. Also called 'Super Seven' or 'Premier' mortgage.