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home :: Mortgage Terms
Glossary D
Mortgage Terms Glossary
D
Debt: money owed to repay someone.
Debt-to-income ratio: a comparison of
gross income to housing and non-housing expenses; With the FHA,
the-monthly mortgage payment should be no more than 29% of monthly
gross income (before taxes) and the mortgage payment combined with
non-housing debts should not exceed 41% of income.
Deed: the document that transfers
ownership of a property.
Deed-in-lieu: to avoid foreclosure ("in
lieu" of foreclosure), a deed is given to the lender to fulfill the
obligation to repay the debt; this process doesn't allow the
borrower to remain in the house but helps avoid the costs, time, and
effort associated with foreclosure.
Deed of trust: a document, used in many
states in place of a mortgage, held by a trustee pending repayment
of the loan. The advantage of a deed of trust is that the trustee
does not have to go to court to proceed with foreclosure should the
borrower default on the loan.
Default: the inability to pay monthly
mortgage payments in a timely manner or to otherwise meet the
mortgage terms.
Delinquency: failure of a borrower to
make timely mortgage payments under a loan agreement.
Department of Housing and Urban Development
(HUD): the U.S. government agency that administers FHA, GNMA
and other housing programs.
Discount point: normally paid at
closing and generally calculated to be equivalent to 1% of the total
loan amount, discount points are paid to reduce the interest rate on
a loan.
Down payment: the portion of a home's
purchase price that is paid in cash and is not part of the mortgage
loan.
Due-on-sale: a clause in a mortgage or
deed of trust allowing a lender to require immediate payment of the
balance of the loan if the property is sold (subject to the terms of
the security instrument).
Duplex: a dwelling divided into two
units.
Related
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Home Equity Lines of
Credit Get Out of Debt
Private Mortgages
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