Glossary Definitions for T - Z
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Money paid to and held by a lender for annual tax payments – see Impound Account.
Claim against a property for unpaid taxes.
Public sale of property by a government authority as a result of nonpayment of taxes.
The number of years it will take to pay off a loan.
A deposit of funds in a financial institution under an agreement stipulating that:
- The funds must be kept on deposit for a stated period, or
- The institution may require a minimum period of notification before a withdrawal is made.
1. The ownership right to property, including the right of possession.
2. The document or instrument constituting evidence of such an ownership right.
This is a company that insures title to property.
A title insurance policy guarantees that an owner properly has title to a property and can legally transfer title to someone else. Should a problem arise, the title insurer pays any legal damages.
This is a review of public records to determine whether there are any claims or defects in the current owner’s title to real estate.
1. Any agreement between two or more parties that established a legal obligation.
2. The act of carrying out such an obligation.
3. All activities that affect a deposit account that are performed at the request of the account holder.
4. All events that cause some change in the assets, liabilities or net worth of a business.
Tax paid when title passes from one owner to another.
A traveler’s check is designed especially for business or vacation travelers. The traveler pays for the checks in advance. Thus, the check is an order from the issuing company to pay on demand. Traveler’s checks are issued in various fixed denominations, may be cashed almost anywhere in the world and are insured against loss, theft or destruction.
Account maintained by a broker or escrow company to handle all money collected for clients.
A trustee is someone given legal responsibility to hold property in the best interest of another.
Congress created the Truth in Savings Act in 1991 to aid consumers in making informed decisions about deposit accounts and to verify account activity. All financial institutions are required to give Truth in Savings disclosures to consumers when an account is opened or when such information is requested. The disclosures explain the terms and conditions under which interest is paid and fees are assessed in connection with an account.
The popular name for the Consumer Credit Protection Act (Regulation Z), which requires lenders disclose to borrowers the cost of financing during the life of the loan.
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.
The process by which a lender decides whether to lend money, based on the value of the property, the borrower’s credit history and any other relevant factors.
A mortgage made by an approved lender and guaranteed by the Department of Veterans Affairs, often with a low down payment.
This is an interest rate that changes periodically in relation to an index.
Document signed by the borrower’s bank or other financial institution verifying the borrower’s account balance and history.
Document signed by the borrower’s employer verifying the borrower’s position and salary.
A waiver is a voluntary relinquishment or surrender of some right or privilege.
A final inspection of a home to check for problems that may need to be corrected before closing.
Mortgage firms often borrow funds on a short-term basis in order to originate loans that will later be sold to investors in the secondary mortgage market. When the prime rate of interest is higher on short-term loans than on mortgage loans, the mortgage firm has an economic loss which is offset by charging a warehouse fee.
An order to pay or to credit money transmitted electronically rather than by paper check.
This is a removal of funds from a savings or checking account by the account’s owner.
A source document filled out by a customer to authorize a withdrawal from the customer’s savings or checking account. The form is kept by the financial institution for its records.
A charge imposed upon an account holder for the early removal of funds from a certificate account, usually an amount equal to interest earned during a prespecified period.
A plan approved by borrower and lender by which the delinquent borrower can reschedule loan payments so that the entire outstanding principal is eventually repaid.
Loan arrangement in which an existing loan is combined with a new loan, resulting in an interest rate somewhere between the old rate and the current market rate.
- The return on an investment, expressed as a percentage of the price originally paid. If the investment, such as a security, is to be sold, its yield is its return expressed as a percentage of its current market price.
- Income derived from an investment in property.
- To give up possession; to pay.
This is a local law establishing building codes and usage regulations for properties in a specified area. This creation of districts specifies different types of property uses such as commercial or residential, etc.