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Houston Mortgage > Glossary >
Home Equity > T 1-10
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T (tiered)
If the letter T appears after the annual percentage rate (APR) on Bankrate rates tables, the interest rate is based on tiered pricing, with different periodic rates applied to different levels of the outstanding balance. The rate shown applies to the lowest of the balance tiers.
Tax deduction
A tax deduction is an amount that the IRS allows you to subtract from your income before computing your income tax. If you have taxable income of $30,000 and deductions of $3,000, then you would figure how much tax you owe on the difference -- $27,000. People may take a standard deduction on federal income taxes, an amount established each year by the IRS for each filing status. Or, if they have a greater amount of deductions than the standard amount, they can deduct them by itemizing expenses on Schedule A. Typical itemized deductions include mortgage interest, some loan points, property taxes and state income taxes. Some other items -- such as alimony payments, moving expenses, deductible IRA and Keogh contributions -- may be deducted directly on the long Form 1040.
Tax lien
A claim, or obstacle, to the sale of property because of unpaid taxes. The property's title can't be transferred until liens are paid.
Tax stamps
A levy by a state or local government on the change of ownership of real estate.
Tear-down condition
A house that is bought so it can be razed to make room for a newer house; usually located in a spectacular setting.
Teaser rate
Often called the introductory rate, it is the below-market interest rate offered to entice customers to switch credit cards or lenders.
Ten-Year Treasury Constant Maturity
An index published by the Federal Reserve Board based on the average yield of a range of Treasury securities, all adjusted to the equivalent of a 10-year maturity. Yields on Treasury securities at constant maturity are determined by the U.S. Treasury from the daily yield curve. That is based on the closing market-bid yields on actively traded Treasury securities in the over-the-counter market.
Term
The time to the maturity of a loan or deposit, expressed in months or years.
The Fed
Congress founded the Federal Reserve Board, the central bank of the United States, in 1913. It conducts the nation's monetary policy and regulates its banks in order to achieve a flexible and stable economy. The seven members of the Board of Governors of the Federal Reserve System are nominated by the President and confirmed by the Senate to serve 14-year terms. The chairman of the Board of Governors is Alan Greenspan. The chairman and the vice chairman of the board are named by the president from among the members and are confirmed by the Senate. They serve a term of four years.
Thrift
A general term encompassing savings banks, savings and loan associations, and credit unions.
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