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"Your Education Center" |
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Debt-to-Income Ratio
The ratio, expressed as a percentage, which results when a
borrower's monthly payment obligation on long term debts is
divided by his or her gross monthly income. See housing
expenses-to-income ratio.
Default
Failure to meet legal obligations in a contract,
specifically, failure to make the monthly payments on a mortgage.
Deferred interest
When a mortgage is written with a monthly payment that is
less than required to satisfy the note rate, the unpaid interest
is deferred by adding it to the loan balance. See negative
amortization.
Delinquency
Failure to make payments on time. This can lead to
foreclosure.
Department of Veterans Affairs (VA)
An independent agency of the federal government which
guarantees long term, low-or-no-down payment mortgages to
eligible veterans.
Down Payment
Money paid to make up the difference between the purchase
price and the mortgage amount.
Due-on-Sale-Clause
A provision in a mortgage or deed of trust that allows the
lender to demand immediate payment of the balance of the mortgage
if the mortgage holder sells the home.
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