Real Estate Glossary

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real-estate-glossary
 

D

Debt-to-Income Ratio 
A comparison of gross income to housing and non-housing expenses. With the FHA, the-monthly mortgage payment should be no more than 29% of monthly gross income (before taxes) and the mortgage payment combined with non-housing debts should not exceed 41% of income. 

Deed
The document that transfers ownership of a property. 

Deed-in-lieu 
to avoid foreclosure ("in lieu" of foreclosure), a deed is given to the lender to fulfill the obligation to repay the debt; this process doesn't allow the borrower to remain in the house but helps avoid the costs, time, and effort associated with foreclosure. 

Default  
The inability to pay monthly mortgage payments in a timely manner or to otherwise meet the mortgage terms. 

Delinquency 
Failure of a borrower to make timely mortgage payments under a loan agreement. 

Discount Point 
normally paid at closing and generally calculated to be equivalent to 1% of the total loan amount, discount points are paid to reduce the interest rate on a loan. 

Down Payment
The portion of a home's purchase price that is paid in cash and is not part of the mortgage loan. 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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