Takeout Mortgage Loan – a mortgage generally taken out to pay off a construction mortgage.
Teaser Rate – An attractive rate that is limited to a set amount of time in the mortgage term. Teaser rates generally last for three to twelve months.
Title – document showing a person’s right to possession or ownership of a property.
Title Insurance – A policy that protects the lender and buyer against loss which can result from inconsistencies in a property title.
Total Debt Service or TDS – The ratio in which Principal, Interest, Taxes, Heat and all outstanding monthly payments is divided by the gross monthly income of an individual. Most lenders require a borrower to have a TDS ratio of less than 40%.