Mortgage and Real Estate Terms Sorted Alphabetically:
D - debt consolidation, debt service, debt reduction
plan, debt-to-income ratio…more
DEBT CONSOLIDATION - paying off, with the proceeds
from a refinance or home
equity loan, all or most of your higher-interest
debts, such as credit card balances. Clearly the most
popular type of homeowner type loan in decades - -
saves hundreds of dollar monthly and may be completely
tax deductible. Today these loans are ranging typically
in the $30,000 to $50,000 size. Monthly family budget
relief in the $400 to $800 range or more are common.
DEBT SERVICE - the combined principal and interest
you pay on loans each month.
DEBT-REDUCTION PLAN - a strategy recommended for
those borrowers wishing to use the smart idea of a
home equity loan for debt consolidation. Be careful
not to run up credit cards again, could cost you lost
time. Be prudent, it's easy once you're on top of
it.
DEBT-TO-INCOME RATIO - the ratio, expressed as a
percentage, which results when a borrower's monthly
payment obligation on long-term debts is divided by
his or her net effective income (FHA/VA loans) or
gross monthly income (conventional loans). If 35%
or more of your gross monthly income is going out
in bill paying, you're a prime candidate for a bill
consolidation.
DEED OF TRUST - a security instrument used in some
states in lieu of a mortgage.
DEED OF TRUST NOTE - the promissory note that is
used with a Deed of Trust on a mortgage loan transaction.
DEFAULT - failure to make payments as agreed to.
DELINQUENCY - failure of a borrower to make timely
payments under a loan agreement.
DEPOSIT/EARNEST MONEY DEPOSIT - a sum of money given
to (1) bind a sale of real property, or (2) assure
payment or an advance of funds in the process of a
loan.
DEPRECIATION - a decline in value of a building or
other real property improvement, resulting from age,
physical wear, and economic or functional obsolescence.
This figure is deducted annually from net income.
DISCLOSURE - information relevant to specific transactions
that is required by law.
DOCUMENTARY STAMP - a mark stamped onto a deed certifying
the amount of transfer tax paid. Referred to as tax
stamps in certain areas.
DOWN PAYMENT - an amount paid in cash to the seller
when a home is purchased. The down payment is the
difference between the purchase price and the mortgage
amount, and is traditionally 10 to 20 percent of the
purchase price; although many loans are now available
with smaller down payments, and in some cases (with
decent/average credit scores) no down payment is needed.
Visit our 100%
mortgage financing and home
loan purchase sections for more information on
buying a home with no money down.
Mortgage Glossary - Mortgage and Real Estate Terms Sorted Alphabetically:
Mortgage
Glossary
A
- adjustable rate mortgage, adjustment interval, amortization,
annual percentage rate (APR) - more
B
- balloon mortgage, bankruptcy, basis point, beneficiary
- more
C
- caps, cash flow, cash out (second mortgage), cash
out refinance - more
D
- debt consolidation, debt service, debt reduction
plan, debt-to-income ratio - more
E
- earned and unearned income, earnest money, easement,
economic life - more
F
- Fair Credit Reporting Act, fair market value, Fannie
Mae - more
G
- good faith estimate, grace period, gradual payment
mortgage (GPM), grantee - more
H
- home equity, home improvement loan, Home Mortgage
Disclosure Act (HMDA) - more
I
- index, in file credit report, inflation, initial
interest rate, ingress and egress - more
L
- lender buy-down mortgage, liability insurance, LIBOR,
loan application - more
M
- manufactured home, market value, maximum loan amount,
mechanic's liens - more
N
- negative amortized (Neg/AM), Neg AM Loans, negative
cash flow, net worth - more
O
- obsolescence, off-site improvements, on-site improvements,
ordinary income - more
P
- par, partial payment, partnership, party wall, payment
shock - more
Q
- quality control, quit claim deed, quote - more
R
- rate shopper, real property, real estate loans,
reconciliation - more
S
- sales contract, satisfaction or mortgage, seasoned
mortgage, second mortgage - more
T
- tax lien, tenancy in common, tenant, term, title,
title insurance - more
U
- underwriting, unencumbered property, uniform commercial
code (UCC)ï -more
V
- VA (Department of Veterans Affairs) Mortgage, vacancy
rate, VA funding fee - more
