D

Debt-to-Income Ratio
The ratio, expressed as a percentage, which results when a borrower's monthly payment obligation on long-term debts is divided by his or her net effective income (FHA/VA loans) or gross monthly income (conventional loans). See housing expenses-to-income ratio.

Deed of trust
In many states, this document is used in place of a mortgage to secure the payment of a note.

Default
Failure to meet legal obligations in a contract; specifically, failure to make the monthly payments on a mortgage. If this happens, you can end up losing the house.

Deferred interest
When a mortgage is written with a monthly payment that is less than required to satisfy the note rate, the unpaid interest is deferred by adding it to the loan balance. See also negative amortization.

Delinquency
Failure to make payments on time. This can lead to foreclosure.

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

Depreciation
A decline in the value of property over time.

Discrimination in Advertising
Any printed or published material that uses words, no matter how subtle, that are of a discriminatory nature aren't allowed by HUD. Some of the examples that HUD gives are "adult building, Jewish home, restricted, private, integrated, or traditional."

Down payment
Money paid to make up the difference between the purchase price and the mortgage amount. Down payments usually are 10 percent to 20 percent of the sales price on conventional loans.

Due-On-Interest
A clause inserted in a mortgage that allows the lender, at its option, to call the loan due and payable upon the transfer of the property.

Also known as "paragraph 17" in FNMA/FHLMC mortgages.

Due-on-Sale-Clause
A provision in a mortgage or deed of trust that allows the lender to demand immediate payment of the balance of the mortgage if the mortgage holder sells the home.

Back to Top