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Houston Mortgage > Glossary >
Credit Repair > T 21-30
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Title search
A check of public records to make sure that the owner of real property has the right to transfer ownership. A title search is designed to spot gaps in the chain of title, liens, problems with the legal description of the property, judgments against the owner, and the like.
Total expense ratio
The percentage of monthly debt payments compared to total before-tax income.
Trade equity
A swap of property, such as real estate or a car, as part of a down payment for other real estate.
Trade-in value
The amount that the dealership will credit you for the vehicle you provide as partial or full payment for another vehicle. Amount credited is frequently about 5 percent below the wholesale value of the vehicle.
Trading down
Selling a more-expensive house to buy a less-expensive dwelling.
Trading up
Selling a house to buy a more-expensive house.
Transaction date
The date that goods or services were purchased or the date the cash advance was made.
Trust
A fund established like a will, specifying how money or property will be disbursed, lists the recipients or beneficiaries and names one or more trustees to manage the assets. An irrevocable trust can¡¯t be changed after the terms are finalized; a revocable trust has more legroom in how much can be transferred, but is usually costlier to maintain.
Truth in Lending Act
A federal law that requires lenders to provide certain information so borrowers can compare one loan to another. The most important facts lenders must provide are: finance charges in dollars and as an annual percentage rate (APR); the credit issuer or company providing the credit line and the size of the credit line; length of grace period, if any, before payment must be made; minimum payment required; any annual fees; and fees for credit insurance, if any.
Two-cycle billing
With the two-cycle method, the average daily balance is calculated from two billing cycles rather than one and finance charges are typically higher This method, in effect, wipes out the grace period for customers who carry a balance. If the bill is not paid in full at the first billing, interest becomes retroactive back to the purchase date. Most credit card issuers use the single-cycle average daily balance method to calculate finance charges.
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Houston Home Mortgage