Debt Consolidation Glossary of Terms

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Glossary - T

tenants in common
Ownership by two or more people in which each person owns an undivided interest in the entire property and all have equal rights to use the property. When one tenant in common dies, that person's interest may be sold, mortgaged or transferred to another in a will.

term
The time to the maturity of a loan or deposit, expressed in months or years.

title
Ownership of real property to the exclusion of anyone else's right to claim the property. Evidence of title is recorded in a deed and held in a county recorder's office. The terms "title" and "deed" often are used interchangably; strictly speaking, the deed is the document and the title is the ownership right that is recorded in the deed.

title insurance
A policy that guarantees that an owner properly has title to a property and can legally transfer title to someone else. Should a problem arise, the title insurer pays any legal damages.

title search
A check of the title records to ensure that the seller is the legal owner of the property and that there are no liens or other claims against the property.

total expense ratio
The percentage of monthly debt payments compared to total before-tax income.

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.