Glossary of Terms: D

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Debt-to-Income Ratio:
The comparison of your total debt with your total income before taxes. The monthly obligation of debt is divided by the monthly income, before taxes, resulting in a percentage.

Deed:
A document by which the title of the property is transferred from a seller to a buyer and is filed with a county recorder. This should be delivered to the buyer on purchasing day.

Deed of Trust:
An instrument used in many states in place of a mortgage to secure the payment of a note.

Default:
The failure to make payments on a loan or to meet the terms of an agreement.

Delinquency:
The failure to make payments on time.

Depreciation:
A decline in value of real property due to physical deterioration, changes in market conditions or other factors.

Disclosure:
Information relating to specific transactions that must be given to consumers by law.

Discount Point:
A point paid to a lender to lower the interest rate. One point is equal to one percent of the loan.

Down Payment:
The amount of money that is paid toward the purchase price of the home that is not part of the mortgage loan. Down payments usually range from 5% to 20% of the purchase price.