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Debt Service: Total debt that you must pay. Includes: mortgages, auto loans, credit cards, other debt.

Debt-to-Income Ratio: A borrower's monthly payment obligation on long-term debts divided by their effective net income (FHA/VA loans) or gross monthly income (conventional loans).

Deed: A written document conveying real property from one owner to another. The deed gives a legal description of the property and is given to the borrower at closing.

Deed of Trust: In many states, a deed of trust is used in place of a mortgage to secure the payment of a note. The borrower gives the legal title of the property to the trustee (3rd Party) who holds the property in trust to ensure payment of the debt to the beneficiary (lender).  If the borrower defaults on the loan, the trustee may sell the property without a court proceeding which is necessary with a mortgage.

Default: When the borrower fails to meet the legal obligations specified in the contract; usually, the failure to make the monthly mortgage payment.

Deferred Interest: When the monthly payment on a mortgage is less than the note rate, the unpaid interest amount is added to the loan balance. This is a creative financing method used for someone who might not qualify for conventional financing.  There is usually a balloon payment associated with these programs making the entire loan balance due in a short period of time.

Deferred Maintenance: The upkeep and repairs made to keep a property in good condition.

Delinquency: Failure to make mortgage payments on time. Delinquency can cause the lender to foreclose on the property.

Delivery: The final transfer of a deed to the Grantee which prohibits the Grantor from revoking it.

Department of Veterans Affairs: An independent agency of the federal government which guarantees programs to eligible veterans which include long-term, low-or no-down payment mortgages.

Deposit: Cash paid to the seller when the sales contract is signed, or cash paid to a lender when a commitment letter is signed.

Depreciation: The decrease in value of real property improvements over time because of deterioration, age, or obsolescence.

Discount: The difference between the present cash value and the face value of an installment note and mortgage or deed of trust.

Discount Points: Additional fees or points paid to a lender to reduce the interest rate.

Down Payment: Money that the borrower is using from their personal assets. Lenders like to see large down payments because it decreases the likelihood of the borrower defaulting on the loan.  Down payments usually are 5 percent to 20 percent of the sales price on conventional loans.

Due on Interest: A mortgage clause that allows the lender to call the loan due and payable at its option upon the transfer of the property. 

Due on Sale Clause: A clause or provision in a mortgage or deed of trust that allows the lender to demand the entire balance of the loan due upon the sale of the property.

Duplex: A residential building containing two separate dwelling units.