Amount owed to another.
The total amount of credit card, auto, mortgage or other debt upon which you must pay.
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.
Deed of Trust
Used in many western states, the agreement used to pledge your
home or other real estate as security for a loan. Similar to a
Failure to make mortgage payments on a timely basis or to comply with other requirements of a mortgage.
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. See negative amortization.
Failure to make mortgage payments when mortgage payments are due.
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.
Discount Points (or Points)
The amount paid either to maintain or lower the interest rate
charged. Each point is equal to one percent (1%) of the loan amount
(i.e., two points on a $100,000 mortgage would equal $2,000).
The difference between the purchase price and that portion of
the purchase price being financed. Most lenders require the down
payment to be paid from the buyer's own funds. Gifts from related
parties are sometimes acceptable, and must be disclosed to the lender.
Due on Sale Clause
A clause in a mortgage agreement providing that, if the
mortgagor (the borrower) sells, transfers, or, in some instances,
encumbers the property, the mortgagee (the lender) has the right to
demand the outstanding balance in full.