tax impound gloss

Tax Impound - Money paid to and held by a lender for annual tax payments. See Impound Account.

Tax Lien - Claim against a property for unpaid taxes.

Tax Sale - Public sale of property by a government authority as a result of non-payment of taxes.

Term - The number of years it will take to pay off a loan.

Title - Document which gives evidence of ownership of a property and the rights of ownership and possession of that property.

Title Company - A company that insures title to property.

Title Insurance - Insurance which protects the lender (lender's policy) or the buyer (owner's policy) against loss due to disputes over ownership of a property.

Title Search - Examination of municipal records to ensure that the seller is the legal owner of a property and that no liens or other claims exist against the property.

Transfer Tax - Tax paid when title passes from one owner to another.

Trust Account - Account maintained by a broker or escrow company to handle all money collected for clients.

Trustee - Someone given legal responsibility to hold property in the best interest of another.

Truth-in-Lending Act - Federal law requiring written disclosure of the terms of a mortgage (including the APR and other charges) by a lender to a borrower after a loan application is made.

Two-Step Mortgage - Mortgage with a low fixed interest rate for 5, 7, or 10 years, which is then adjusted to a new rate for the rest of the loan.