Real Estate Glossary
- Days on the Market - The period of time a property is listed for sale until it is sold or taken off the market.
- 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 - A format written instrument by which title to real property is transferred from the one owner to another.
- 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.
- Disclosure - A written statement to a potential buyer listing information relevant to a piece of property, such as the presence of radon or lead paint.
- Discount Points - 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.
- Dry Rot - A fungal decay that causes wood to become brittle and crumble.
- Due-on-Sale - A clause in a mortgage providing that if the mortgagor sells, transfers, or in any way encumbers the property, the lender has the right to demand the balance due on the mortgage.