Laguna Beach Mortgage

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Mortgage Glossary

Use this glossary to look up definitions of mortgage terms.

The definitions given here explain how the terms are used in the field of real estate finance.

 

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Take-Out Loan
Long term financing used to replace a construction loan (an interim loan) when construction has been completed. Also called a permanent loan.
Title
The document that outlines proof of ownership of a property.
Title Insurance
A policy which insures you against errors in the title search (to determine legal ownership), essentially guaranteeing you and your lender's financial interest in the property.
Title Search
An examination of municipal records to determine the legal ownership of the property. Usually is performed by a title company.
Total Finance Charge
Under the Truth In Lending Act, the total finance charge on a loan includes the interest, any discount points paid by the borrower, the loan origination fee, and mortgage insurance costs. See also: Annual Percentage Rate.
Townhouse
A townhouse is a row house on a small lot that shares walls with other similar units.
Treasury Bills
Securities issued by the Treasury department that have the full backing of the U.S. Government.
Treasury Index
An index used to determine interest rate changes for adjustable rate mortgages (ARMs).
Triplex
Any building containing exactly three dwelling units.
Trust Account
A bank account in which funds held in trust on behalf of another person are kept separate from the holder's own money.
Trustee
In a deed of trust transaction, a neutral third party appointed by the lender to handle non-judicial foreclosure (if necessary) or reconveyance after the loan has been re-paid.
Trustee's Sale
A non-judicial foreclosure sale pursuant to the power of sale clause in a deed of trust.
Truth In Lending Act (TILA)
A federal law that requires lenders and credit arrangers to make disclosures concerning loan costs (including the total finance charge and the annual percentage rate) to consumer loan applicants.