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GLOSSARY 'D' |
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1. |
Debt-To-Income-Ratio (DTI):
Ratio of a borrower's monthly payment obligation on long-term debts divided by gross monthly income.
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2. |
Deed:
The document by which title to real property is transferred from one party to another.
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3. |
Deed in Lieu:
A deed from the lender to the borrower to prevent foreclosure and to satisfy the unpaid balance of the mortgage.
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4. |
Deed of Trust:
Also referred to as Trust Deed. It is a legal instrument by which title to land is transferred to a trustee as security for a debt or other obligation.
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5. |
Default:
The borrower's failure to make payments on a loan.
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6. |
Delinquency:
The borrower's failure to make payments on time.
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7. |
Deposit Receipt:
Used when accepting "Earnest Money" to bind an offer for property by a prospective purchaser, also includes terms of a contract.
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8. |
Disclosure:
Information relevant to specific transactions that is required by law.
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9. |
Discount Point:
Amount paid to the lender by the borrower or seller to increase the lender's effective yield. One point is equal to one percent of the loan.
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10. |
Down Payment:
The difference between the sales price of a property and the mortgage amount that is paid by the borrower.
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11. |
Dry Funding:
Any advance of funds to a mortgage banker for funding or purchasing mortgage loans where the collateral is in the possession of the agent and is free of liens or bailment.
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12. |
Due-On-Sale Clause:
A provision in a mortgage that allows the lender to demand full payment of a mortgage when the secured property changes ownership.
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