|
Word |
Definition |
| Debt-to-Income Ratio |
The ratios, expressed as a percentage, between a borrower's monthly payment obligation on long term debts, and his gross monthly income |
| Declaration of Restrictions |
A set of restrictions filed by a subdivider to cover an entire tract or subdivision. |
| Deed of trust |
In some states, this document is used in place of a mortgage. Property is transferred to a trustee by the borrower (trustor), in favor of the lender (beneficiary), and reconveyed upon payment in full. |
| Default |
Failure to meet legal obligations in a contract, specifically, failure to make the monthly payments on a mortgage. |
| Defective Title |
Title to a negotiable instrument obtained by fraud. Title to real property which lacks some of the elements necessary to transfer a good title. |
| Delinquency |
Failure to make payments on time. |
| Depreciation |
Decrease in value to real property improvements caused by deterioration or obsolescence. |
| Devise |
Real estate left by will |
| Disbursements |
Payments made at closing. |
| Discount Points |
Prepaid interest assessed at closing by the lender. Each point is equal to one percent of the loan amount. Example: 3 points on a $100,000 mortgage would cost $3,000 |
| Down Payment |
Money paid to make up the difference between the purchase price and the mortgage amount. Depending upon the loan type, down payments are usually 3 to 20 percent of the sales price |
| Due-on-Sale |
A clause included in the mortgage that allows the lender to call the loan due and payable at its option, if the borrower sells the property |
