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Term
The lifespan of the contract to repay a loan.

Don't confuse "term" with "amortization." The term can be 6 months to 10 years. For example, a mortgage that is amortized over 20 years might have a 5-year term. At the end of 5 years the mortgage will mature. However, because the loan is amortized over 20 years, there will still be money owed on the loan. (This is sometimes referred to as a "balloon" mortgage). The borrower can either renew the loan, refinance it with another lender, or pay it off completely.

Term mortgage
See balloon payment mortgage.

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 home buyer against errors in the title search. The cost of the policy is us ally 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.

Transaction fee
A fee charged each time you draw on your credit line.

Truth-In-Lending
A federal law requiring disclosure of the Annual Percentage Rate to home buyers shortly after they apply for the loan.

Two-Step Mortgage
Mortgage in which the borrower receives a below-market interest rate for a specified number of years (most often seven or 10), 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 with 30 days notice at the end of seven or 10 years. also called "Super Seven" or "Premier" mortgage.

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