A
single loan to pay off multiple debts, usually over a longer term. This is a
popular use for a home equity line of credit.
Debt-to-income
ratio
Your
total monthly debt payments (for example: loans, credit cards and court-ordered
payments) divided by your gross monthly income before taxes and expressed as a
percentage. Federal Housing Administration (FHA) guidelines layer in early
2017 recommend that your monthly mortgage payment should be no greater than 31%
of your monthly income before taxes and your total monthly debt should be no
greater than 43% of your monthly income before taxes.
Deed
(warranty or quit-claim)
A document that legally transfers ownership of real estate
from a seller to a buyer and delivered to the buyer at closing. Before making a
loan, a lender will usually require a title search or a title report to make
sure the borrower legally owns the real estate tthat is being used to secure
the loan.
Deed in Lieu of Foreclosure
Deed in which the mortgagor conveys
all interest in the property to the Mortgagee to satisfy a loan that is in
default to avoid foreclosure proceedings. A written settlement agreement will
always accompany deed in Lieu. The lender waives the right to collect any
deficiency based on a promissory note.
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 mortgage payments on time or to meet other terms of a loan. Default can
lead to foreclosure.
Delinquency
Failure
to make payments on time.
Department of Veterans Affairs (VA)
The Cabinet level department of the
Federal Government responsible for operating programs tht benefit veterans of
Military Service and their families. It is Headed by the Secretary of veterans
Affairs.
Discount
points
A Fee equal to one percent of the
loan amount tht is prepaid interest on the Mortgage loan. The more points, the
lower the interest rate. Borrowers can typically pay from zero to four points.
It is also tax deductible.
Down payment
The
amount of cash you pay toward the purchase of your home to make up the
difference between the purchase price and your mortgage loan. Down payments
often range between 5% and 20% of the sales price depending on many factors,
including your loan, your lender and your credit history.
Draw
The
process of obtaining an advance against your available line of credit.
Draw
period
The
period during which a borrower can obtain advances (also called draws) from an
available line of credit. At the end of the draw period, borrowers may be able
to renew the credit line or be required to pay the outstanding balance in full
or in monthly installments.
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.
Deferred
annuity
A deferred annuity lets you
potentially grow your assets so they could provide a steady stream of income
during retirement. When you purchase the annuity, you deposit money into it
over a period of time. That money is invested. At a certain point, usually at
retirement, you start receiving payments from the annuity. These payments can be
made in a lump sum or in installments.
Deflation
The opposite of inflation, deflation
is a decline in the prices of goods and services.
Depreciation
A decrease in the value of an
investment.
Designated
investment alternative
Your plan’s investment options.
Distribution
Money you take from your financial
account, such as an IRA. Also called a withdrawal.
Diversification
The practice of investing in
multiple asset classes and securities with different risk characteristics.
Dividend
Money an investment fund or company
pays to its stockholders, typically from profits. The amount is usually
expressed on a per-share basis.
Dow
Jones (DJ) Global Select Real Estate Securities IndexSM
An unmanaged index that measures the
performance of publicly traded securities of globally traded real estate
operating companies (REOCs) and real estate investment trusts (REITs).
Dow
Jones Industrial Average (DJIA)
The Dow is a widely-followed
price-weighted index of 30 of the largest, most widely-held U.S. stocks.
Dodd-Frank Wallstreet Reform and
Consumer Protection Act
A 2010 Federal statute that promotes
the financial stability of the United States by improving accountability and
transparency in the financial system. Statute affects nearly every federal
agency and jurisdiction over finance or consumer protection, and nearly every
segment of the financial services industry.
Duration
An estimate of bond price
sensitivity to changes in interest rates. The higher the duration, the greater
the change (higher risk) in relation to interest-rate movements.
Acronyms
DTI
(Debt to income)
two ratios, front end and the back end. DTI from end (housing expensive) is determined by dividing the amount of housing by the borrowers gross income.(Examples of debts :credit cards,car loans,student loans. Not included: cell phone ills and utilities)
DFA
Dodd-Frank Wall Street Reform and Consumer Protection Act
DU/ DO
desktop underwriter and desktop originator. States Fannie Mae AUS
Delinquency
a mortgage payment that is more than 30 days late
DBA
doing business As
DU
(desktop underwriter): The AUS used by Fannie Mae)