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

Debenture
An unsecured bond or note.
Back to top

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

Debit Card (EFT)
Funds required by a lender in advance of processing a loan request. Generally a deposit is collected to cover the costs of an appraisal and credit report and may or may not be refundable.
Back to top

Debt
An obligation to pay another.
Back to top

Deed
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.
Back to top

Deed of Trust
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.
Back to top

Deed Stamp
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.
Back to top

Deed-in-lieu
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.
Back to top

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

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

Delivery Fee
A fee charged generally by the title company or attorney for the delivery of documents to your lender. For our comparison purposes, the delivery fee is considered to be a third party fee.
Back to top

Department of Veterans Affairs (VA)
An agency of the federal government that provides services and guarantees residential mortgages made to eligible veterans of the military services
Back to top

Deposit
Funds required by a lender in advance of the processing of a loan request. Generally a deposit is collected to cover the costs of an appraisal and credit report and may or may not be refundable.
Back to top

Depreciation
A decline in the value of real or personal property. The opposite of appreciation.
Back to top

Devise
A gift of real property by will or last testament.
Back to top

Disburse
To pay out on the loan.
Back to top

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

Discount Points
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. Sometimes referred to as "points".
Back to top

Discount Rate
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.
Back to top

Diversification
Diversification is the process of reducing the collective risk at one point of investment by spreading the investments on various returns fetching concepts like stocks, bonds, real estate, securities, etc. Diversification reduces both the upside and downside potential of risk in a given time, when investments are diversified.
Back to top

Document Preparation
Lenders will prepare some of the legal documents that you will be signing at the time of closing, such as the mortgage, note, and truth-in-lending statement. This fee covers the expenses associated with the preparation of these documents. For our comparison purposes, the document preparation charges are considered to be a lender fee.
Back to top

Documentary Stamp
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.
Back to top

Dower
The rights of a widow in the property of her husband upon his death.
Back to top

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

Draw Period
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.
Back to top

Due-on-sale Clause
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.
Back to top

Durable Goods Orders
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
Back to top