Glossary

We’ve put together an extensive glossary of terms used in the mortgage lending business. If you’re not sure what a particular term means, click to find the definition in our glossary.

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

An amount owed to another. See installment loan and revolving liability.

Deed

The legal document conveying title to a property.

Deed-In-Lieu

A deed given by a borrower to the lender to satisfy a debt and avoid foreclosure. Also called a "voluntary conveyance."

Deed of Trust

The document used in some states instead of a mortgage; title is vested in a trustee to secure repayment of the loan.

Default

Failure to make loan payments on a timely basis or to comply with other requirements of a mortgage.

Delinquency

Failure to make mortgage payments when due.

Deposit

A sum of money given to bind the sale of real estate, or a sum of money given to ensure payment or an advance of funds in the processing of a loan. See earnest money deposit.

Depreciation

A decline in the value of property because of physical or economic changes such as wear and tear; the opposite of appreciation.

Discount Points

Amounts paid to the lender at origination to lower the rate on the face of the note. See point.

Down Payment

The part of the purchase price of a property that the buyer pays in cash and does not finance with a home loan.

Draw Period

The time period in which the borrower may access and use a line of credit.

Due-On-Sale Provision

A provision in a mortgage home loan that allows the lender to demand repayment in full if the borrower sells the property that serves as security for the loan.

Due-On-Transfer Provision

This terminology is usually used for second mortgages. See due-on-sale provision.