Understand the most important lending and mortgage terms. Mortgages can be confusing for the first time home buyer, so let us help explain. Below you'll find explanations for most of the mortgage industry terms.

What is Debt-to-income ratio? The ratio, expressed as a percentage, that results when a borrower's monthly payment obligation on long-term debts is divided by monthly…
Written by Henry Gilbert
What is Deed? A legal document that transfers a property from one owner to another. The deed contains a description of the property, and is signed, witnessed and delivered to the buyer at…
Written by Henry Gilbert
What is Deed of trust? Agreement to pledge property as security for a loan, used in many states in place of a mortgage. In this arrangement, the borrower transfers legal title to a trustee who holds the property in trust…
Written by Henry Gilbert
What is Default? Failure to meet legal obligations in a contract, including failure to make payments on a loan. A mortgage is generally considered to be in default when a payment is 30 or more days past…
Written by Henry Gilbert
What is Deferred interest? Interest added to the balance of a loan when monthly payments are not sufficient to cover it. (See Negative…
Written by Henry Gilbert
What is Delinquency? Failure to make payments on…
Written by Henry Gilbert
What is Deposit? Cash paid when a formal sales contract is signed. The deposit is usually held by a third party until the sale is…
Written by Henry Gilbert
What is Depreciation? When the value of property…
Written by Henry Gilbert
What is Discount points (or Points)? Money paid to a lender at closing in exchange for lower interest rates. Each point is equal to 1 percent of the loan…
Written by Henry Gilbert
What is Documentary stamps? A state tax, in the forms of stamps, required on deeds and mortgages when a real estate title passes from one owner to…
Written by Henry Gilbert
What is Down payment? Money paid for a house from one's own funds at closing. The down payment will be the difference between the purchase price and mortgage…
Written by Henry Gilbert
What is Down Payment And Fees? Money paid to make up the difference between the purchase price and mortgage amount plus the closing cost fees to close the…
Written by Henry Gilbert
What is Due-on-sale clause? Provision in a mortgage or deed of trust allowing the lender to demand immediate payment of the loan balance upon sale of the…
Written by Henry Gilbert


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