Damages - Top

The amount recoverable by a person who has been injured in any manner through the act or default of another.

Debenture - Top

An unsecured bond or note.

Debit - Top

In a closing statement or settlement, an item that is charged to a buyer or seller. Compare with credit.

Debit Card (EFT) - Top

A plastic card which looks similar to a credit card, that consumers may use to make purchases, withdrawals, or other types of electronic fund transfers.

Debt - Top

An obligation to pay another.

Deed - Top

The written instrument that conveys a property from the seller to the buyer.  The deed is recorded at the local courthouse so that the transfer of ownership is part of the public record.

Deed of Trust - Top

This document, referred to as a mortgage in some states, pledges a property to a lender or trustee as security for the repayment of a debt.

Deed Stamp - Top

A tax that is required in some municipalities if a property changes hands.  The amount of this tax can vary with each state, city and county.  For our comparison purposes, this fee is considered a tax or other unavoidable fee.

Deed-in-lieu - Top

A process that allows a borrower to transfer the ownership of a property to the lender in order to avoid loss of the property through foreclosure.

Default - Top

A breech of the agreement with a lender such as the failure to make loan payments in a timely manner.

Delinquency - Top

The failure to make payments on debts when they are due.

Department of Veterans Affairs (VA) - Top

An agency of the federal government that provides services and guarantees residential mortgages made to eligible veterans of the military services

Depreciation - Top

A decline in the value of real or personal property. The opposite of appreciation.

Devise - Top

A gift of real property by will or last testament.

Disburse - Top

To pay out the proceeds on a loan.

Disclosures - Top

Information that must be given to consumers about their financial dealings.

Discount Points - Top

Also known as “Points”, discount points are fees that are collected by the lender in exchange for a lower interest rate.  Each discount point is 1% of the loan amount.  For our comparison purposes, a discount point is considered to be a lender fee.  To determine if it is wise to pay discount points to obtain a lower rate, you must compare the up front cost of the points to the monthly savings that result from obtaining the lower rate.  You should also consider the length of time you expect to be in the house. The loan origination fee (usually 1%) is not typically considered to be part of the discount points. Consult with a Loan Officer for futher advice.

Discount Rate - Top

The interest rate that the Federal Reserve charges member banks for loans, using government securities or eligible paper as collateral. This provides a floor on interest rates, since banks set their loan rates a notch above the discount rate.

Document Preparation Fee - Top

Some lenders will charge a fee to prepare some of the legal documents that you will be signing at the time of closing, such as the deed of trust/mortgage, note, and truth-in-lending statement.  For our comparison purposes, the document preparation charges are considered to be a lender fee.

Documentary Stamp - Top

A tax levied by some local or state governments at the time the deeds and mortgages are entered into public record.  For our comparison purposes, documentary stamps are considered to be a tax and other unavoidable fee.

Dower - Top

The rights of a widow in the property of her husband upon his death.

Down Payment - Top

The portion of the purchase price of a property that the borrower will be paying in cash rather than included in the mortgage amount.

Draw Period - Top

Generally associated with home equity lines of credit, the draw period is the period of time that you can access funds from the line. After the draw period expires, a repayment period generally follows.

Drive-by Appraisal - Top

A drive-by appraisal is an abbrevated value assessment which provides the bank with a basis to determine your loan to value.

Due-on-sale Clause - Top

A provision in a mortgage that allows the lender to demand repayment in full, if the borrower sells the property that serves as security for the loan.

Durable Goods Orders - Top

Economic indicator that measures new orders placed with domestic manufacturers for immediate and future delivery of factory hard-goods. Monthly percent changes reflect the rate of change of such orders. Levels of, and changes in, Durable Goods Orders are widely followed as an indicator of factory sector momentum. Frequency: Monthly Source: Commerce Department