Tax Lien: A Federal, State, or local government’s claim of a debt against a person’s name or real estate. A Federal or State tax lien has very far reaching effects on a person’s ability to buy real estate or to refinance. A tax lien on a credit report can be as devastating as a bankruptcy. A tax lien will almost always take precedent over any real estate loan in the event of foreclosure, sale, or refinance of a property.

Teaser Rate: Also called a Honeymoon Rate this is the low, introductory rate on a credit card or adjustable rate mortgage. It is usually an under market rate to attract new borrowers.

Terms: The agreed upon parameters for repayment of a debt or loan. Examples of the terms of a contract might be interest rate, period of time to repay, date payments must be made, and any late charges that might be assessed.

Thrift: A federally regulated savings bank or savings and loan association that is similar to a bank. While banks offer a wide array of services, thrift’s main business is to make consumer and home loans.

Title I Loan: AnFHA insured loan (usually a 2 nd mortgage) that allows the borrower to use the funds for non-luxury home improvements. A new roof, repairs to foundation, plumbing, electrical, and other house systems are examples of non-luxury improvements.

Title insurance: One time fee paid insurance that protects lenders and homeowners against loss of their interest in the property because of legal problems with the title.

Trade In Value: The amount a car dealer is willing to pay someone for thevehicle they bring in as trade for a new vehicle.

Trade line: Any account listed on a credit report.

Truth In Lending Act: Federal legislation designed to protect consumers and level the playing field between offerings for credit to consumers. The Act requires that all lenders disclose the total cost of the loan or credit being extended, the interest rate and method of determining that rate, any closing costs to acquire the credit and the Annual Percentage Rate for that credit. See Annual Percentage Rate.

Turn Key: A house that is ready to move into. It is clean, well decorated, without need for many improvements. This is the most easily sold piece of real estate. See sweat equity