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GLOSSARY
TransUnion
One of the three largest credit reporting agencies along with Experian and Equifax.
Treasury bill or Treasury note
Treasury bill, or Treasury note, is short-term debt security that's issued and backed by the U.S. government. Treasury bills are sold at a discount, so that the value of the bond increases as the maturity date approaches. Investors realize yield by purchasing the bond at a discount, and then selling it for a higher price at a later date.
Treasury index
A grouping of indexes that are used to determine the interest rate changes on adjustable rate mortgages.
Treasury note or bill
A US government debt with a maturity from one to ten years. Expressed as a note.
Triple net lease
Triple net lease is a lease that assigns responsibility for taxes, insurance, and maintenance costs to the lessee rather than the property owner. Triple net leases are sometimes called net-net-net leases, or hell or high water leases.
Trojan horse
A Trojan horse is a malicious software program that's disguised as being legitimate, so that users inadvertently open the program and run it. Trojans are used by hackers to gain unauthorized access to other computers and files.
Trust
Similar to a will. A relationship where a person transfers valuables or assets to a trustee who manages this property for the benefit of the beneficiary.
Trust account
An account which manages the earnest money, money set aside for repairs, and other prepaid closing monies. These accounts are managed by the broker or the escrow agent.
Trust deed
Trust deed is a legally binding document that establishes ownership rights of a property. It's sometimes used to document the financing of real estate purchases, where ownership is assigned to a trustee until the loan is paid off. Ownership rights are transferred to the owner only after the debt obligation is fulfilled. In these arrangements, the trustee remains silent unless the borrower defaults.
Trustee
A person who manages the assets.
Truth in Lending
Truth in Lending, also known as TILA, is federal legislation that addresses predatory lending practices. Under TILA, lenders must provide loan applicants with basic loan information, such as annual percentage rate (APR), minimum payment, annual fees, credit insurance fees, etc. This information, which is provided before loan funding, assists the applicant in budgeting and in comparing competitive loan offers.
Truth-in-lending act
Disclosure in writing the terms and conditions of mortgage charges and annual percentage rate (APR) as required by the federal law.
Tuition reimbursement plan
A benefit offered by many companies as an incentive for their employees to continue their education by repaying for their tuition.
Two-cycle billing
Two-cycle billing is a means of calculating finance charges on a credit card account. The finance charges are assessed by multiplying the rate by the average daily balance on the account for the past two months. This method tends to result in higher finance charges.
Two-step mortgage
A mortgage (ARM) with an adjustable interest rate where the borrower pays a certain interest rate (usually below market rate) for the first 7 years which is then later adjusted to the market rate for the remaining period.