Mortgage Glossary – D
Legal document conveying title to a property. The deed contains a description of the property, and is signed, witnessed and delivered to the buyer at closing.
Failure to meet legal obligations in a contract, including failure to make payments on a loan.
Failure to make payments as agreed in the loan agreement. The payment is overdue but default has not yet been declared.
A loss of value in real property brought about by age, physical deterioration, functional or economic obsolescence.
When the note rate on a loan is less than the market rate, it is a discounted loan. However, the lender requires additional points to raise the yield on the loan to the market rate.
Information that is required by law relevant to specific transactions
A point paid to the lender to permanently buy down or lower an interest rate. It is usually a percentage of the loan amount.
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