D

Deed

Legal document with which title to real property is transferred from one owner to another. The deed contains a description of the property, and is signed, witnessed, and delivered to the buyer at closing.

Deed_of_Trust

A legal document that conveys title to real property to a third party. The third party holds title until the owner of the property has repaid the debt in full.

Default

Failure to meet legal obligations in a contract, including failure to make payments on a loan.

Delinquency

Failure to make payments as agreed in the loan agreement.

Discount Points (or Points)

Points are an up-front fee paid to the lender at the time that you get your loan. Each point equals one percent of your total loan amount. Points and interest rates are inherently connected: in general, the more points you pay, the lower your interest rate. However, the more points you pay, the more cash you need up front since points are paid in cash at closing.

Document Preparation Fee

Occasionally we use outside companies to prepare the loan closing documents. This fee covers the cost of this service.

Down Payment

The amount of your home's purchase price you need to supply up front in cash to get your loan. For conventional loans, you should strive for a down payment that's at least 20% of your home's value, since lenders generally do not require private mortgage insurance with a down payment of at least 20% of your home's purchase price. (Note, however, that FHA and VA loans have different policies regarding insurance.)

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 property.

Duplex

Owner occupied property for more than one family