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
D
- Debt security
A security in which the issuing company generally agrees to repay the principal
(typically, the original amount borrowed) and make interest payments according to an
agreed schedule.
- 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 gross monthly income. See Housing expenses-to-income
ratio.
- Deed
A formal written instrument by which title to real property is transferred from one owner
to another. The deed should contain an accurate description of the property being
conveyed, should be signed and witnessed according to the laws of the State where the
property is located, and should be delivered to the purchaser at closing day. There are
two parties to a deed: the grantor and the grantee. (See also Deed
of trust, General warranty
deed, Quitclaim deed, and Special warranty deed.)
- Deed of trust
The document used in some states instead of a mortgage; title is conveyed to a trustee.
- Default
The failure of a borrower to comply with the terms of a note or the provisions of a
mortgage.
- Deferred Interest
See 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
Decline in value of a house due to wear and tear, adverse changes in the neighborhood, or
any other reason.
- Derivative
A financial instrument which derives its value from an underlying security or notional
amount.
- Discount point
See Points.
- Documentary
stamps
A State tax, in the forms of stamps, required on deeds and mortgages when real estate
title passes from one owner to another. The amount of stamps required varies with each
State.
- Down
payment
Money paid to make up the difference between the purchase price and the mortgage amount
- 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.
- Duration
The weighted-average life of the present value of all future cash flows, both
principal and interest, of a security. It is used as a measure of the sensitivity of the
value of a security to changes in interest rates.
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
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