Mortgage and Loan Glossary (D)
A | B | C | D | E | F | G | H | I | J | K | L | M | N | O | P | Q | R | S | T | U | V | W | X | Y | Z
damages
The amount recoverable by a person who has been injured in any manner
through the act or default of another.
debenture
An unsecured bond or note.
debit
In a closing statement or settlement, an item that is charged to a
buyer or seller. Compare with credit.
debit card (EFT card)
A plastic card, looks similar to a credit card, that consumers may
use to make purchases, withdrawals, or other types of electronic
fund transfers.
debt
An obligation to pay another.
debt-to-income ratio
A figure, expressed as a ratio, that compares the amount of recurring
debt payments a borrower is obligated to make, to the amount of their
income.
deed
A legal document that conveys title to real property.
deed-in-lieu (of foreclosure)
A deed to real property given by the borrower to the lender to satisfy
a debt and avoid foreclosure. Sometimes called a voluntary conveyance.
deed of trust
The legal document used in some states instead of a mortgage. Legally,
a deed of trust conveys title to a trustee to secure repayment of
the loan by the borrower. This document helps to establish both your
interest and the lender's interest in the property, and to define
each party's obligations.
default
The failure of the borrower to make loan payments on a timely manner,
or to comply with other requirements of a loan contract.
delinquency
The failure of the borrower to make agreed upon loan payments when
they are due.
deposit
Money paid in good faith to assure the performance of a contract. Often
given to bind the sale of real property.
depreciation
A decline in the value of real or personal property. The opposite of
appreciation.
devise
A gift of real property by will or last testament
discount points
Fees that a borrower pays when the lender makes the loan, to get a
lower interest rate. Lenders offer various rate/point combinations,
and borrowers pay points to adjust the interest rate to the market
rate. One point equals one percent of the loan amount.
discount rate
Interest rate that the Federal Reserve charges member banks for loans,
using government securities or eligible paper as collateral. This
provides a floor on interest rates, since banks set their loan rates
a notch above the discount rate.
disclosures
Information that must be given to consumers about their financial dealings.
dower
The rights of a widow in the property of her husband upon his death.
down payment
The part of the purchase price of a property that the buyer pays in
cash and does not finance with a loan.
DTI
See debt-to-income ratio.
due-on-sale clause
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 loan.
Durable Goods Orders
Economic indicator that measures new orders placed with domestic manufacturers
for immediate and future delivery of factory hardgoods. Monthly percent
changes reflect the rate of change of such orders. Levels of, and
changes in, Durable Goods Orders are widely followed as an indicator
of factory sector momentum. Frequency: monthly. Source: Commerce
Department.