FrontDoor.com

Debt-to-income ratio -- The ratio (expressed as a percentage) which describes a borrower's monthly payments on long-term debts divided by their "net effective income" (for FHA and VA loans) or gross monthly income (for conventional loans).

Deed of trust -- Used in place of a mortgage to secure the payment of a note (not in every state).

Default -- Failure to make your monthly payments.

Deferred interest -- Unpaid interest added to the loan balance.

Delinquency -- Failure to make payments on time.

Department of Veterans Affairs (VA) -- An independent governmental agency which guarantees long-term, low- or no-money-down mortgages to eligible veterans.

Depreciation -- A decline in a property's value.

Discrimination in advertising -- HUD does not allow the use of words of a discriminatory nature in any printed or published material. For example, adult building, Jewish home, restricted, private, integrated and traditional.

Down payment -- Usually 10-20 percent of the sales price (on conventional loans) paid by the buyer at the time of purchase. Comprises the difference between the purchase price and the mortgaged amount.

Due-on-interest -- A mortgage clause that allows a lender to call a loan due and payable upon the transfer of the property. Known as "paragraph 17" in FNMA/FHLMC mortgages.

Due-on-sale clause -- A provision that allows a lender to demand the immediate repayment of the mortgage balance if the borrower sells the home.

<< C I E >>