Glossary

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Debt
An amount owed to another. See installment loan and revolving liability.

Debt Consolidation Loan
Debt consolidation is actually a fairly simple process. A consumer overwhelmed by bills from various creditors can take their debts and merge them into a single loan at a lower interest rate than they were paying. Most credit cards charge nearly a whopping 20% interest, with department store credit and other types of loans charging even more than that. If your debt is mostly credit card debt then a debt consolidation loan would be a good choice

Debt-To-Income (DTI) Ratio
The percentage of gross monthly income that goes toward paying all long term debts, such as mortgage loans, car loans, student loans, credit cards, etc. If your monthly gross income is $4,500 and the total of your debt payments is $1,620, your debt-to-income ratio is 36% ($1,620 divided by $4,500). See Income

Deed
The legal document transferring or conveying title to a property from one party to another.

Deed Of Trust
The document used in some states instead of a mortgage; title is conveyed to a trustee to be held in trust as security for the lender.

Deed-In-Lieu
With the lender’s approval, a borrower may transfer the deed to a property to the lender to satisfy a debt and avoid foreclosure. Also called a "voluntary conveyance."

Default
Failure to make mortgage payments on a timely basis or to comply with other requirements of a mortgage.

Delinquency
Failure to make mortgage payments when mortgage payments are due.

Department of Veterans Affairs (VA)
See VA.

Deposit
Money given to bind the sale of real estate or assure payment or an advance of funds in the processing of a loan. See earnest money deposit. See Earnest money form

Depreciation
A decline in the value of property; the opposite of appreciation.

Discount Points
See point.

Document Preparation Fees
Fees charged by a lender or closing agent to prepare the documents associated with providing a mortgage loan.

Down Payment
The part of the purchase price of a property that the buyer pays in cash and does not finance with a mortgage.

Due-On-Sale Provision
A provision in a mortgage that allows the lender to demand repayment in full if the borrower sells the property that serves as security for the mortgage.

Due-On-Transfer Provision
This terminology is usually used for second Business. See due-on-sale provision.