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.

Declaration of Restrictions

A set of restrictions filed by a subdivider to cover an entire tract or subdivision.

Deed

Formal written document transferring title to real estate; a new deed is used for each transfer.

Deed of Trust

An instrument given by the borrower to a third party (trustee) vesting title to the property in the trustee as security for the borrower's repayment of the mortgage loan.

Deed of Trust Rider

The document required by the lender to be recorded along with the security instrument for an ARM.

Deed Restriction

Provision placed in a deed to control use and occupancy of the property by future owners.

Default

Failure to make mortgage payments or violations other provisions of the mortgage note.

Deficiency Judgment

Personal claim against the debtor when the sale of foreclosed property does not yield sufficient proceeds to pay off the loan(s) and accrued interest.

Defective Title

Title to a negotiable instrument obtained by fraud. Title to real property which lacks some of the elements necessary to transfer good title.

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.Seenegative 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.

Depreciation

Decrease in value to real property improvements caused by deterioration or obsolescence.

Devise

Real Estate left by will.

Devisee

One to whom real estate is given by will.

Devisor

A testator who leaves real estate.

Direct Endorsement

A lender that can complete the processing and closing of an FHA loan without prior approval from FHA.

Direct Reduction Mortgage

An amortized mortgage in which principal and interest are computed on the remaining balance.

Discount

A loan funded below par (100%). Lenders or investors will fund loans at a discount in order to increase the overall yield on the note.

Disbursements

Payments made during the course of an escrow or at closing.

Documentary Tax Stamps

Stamps affixed to a deed showing the amount of transfer tax.

Dower

The rights of a widow to a portion of her deceased husband's property.

Down payment

Cash to be paid by the buyer at closing to consummate a real estate transaction.

Dragnet Clause

A clause in a mortgage or deed of trust which places the real estate as security for existing debts between the parties.