 James Balletta, Owner/Broker
(516) 921-5025
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C.R.B., G.R.I., C.R.S., President, Licensed Real Estate Broker |
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REAL ESTATE GLOSSARY
D
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Debt
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Deed
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Deed of Trust
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Default
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Delinquency
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Department of
Veterans Affairs (VA)
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Deposit
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Depreciation
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Discount Points
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Detached Single-Family Home
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Direct Leveraging Loan Program
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Down Payment
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Dower
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Due-on-sale Provision
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Due-on-transfer Provision
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Deed-in-Lieu
Debt
An amount owed to another. See installment loan and revolving liability.
Deed
The legal document conveying title to a property.
The deed is the document that transfers ownership from the seller to you. Only the seller signs the deed at closing, and you'll receive a copy of it.
The closing agent will record the deed with you listed as the new property owner. Your name and the names of any other buyers appear on the deed, and it will be sent to you after it is recorded.
Deed of Trust
The document used in some states instead of a mortgage; title is conveyed to a trustee.
In some states, a "deed of trust" is used instead of a mortgage. When homeowners sign a deed of trust, they receive title to the property but convey title to a neutral third party -- called a trustee -- until the loan balance is paid in full.
Default
Failure to make mortgage payments on a timely basis or to comply with other requirements of a mortgage.
Delinquency
Failure to make mortgage payments when mortgage payments are due.
Department of Veterans Affairs (VA)
An agency of the federal government that guarantees residential mortgages made to eligible veterans of the military services. The guarantee protects the lender against loss and thus encourages lenders to make mortgages to veterans.
The Veterans Administration is a federal government agency authorized to guarantee loans made to eligible veterans under certain conditions. To obtain more information, you can contact the U.S. Department of Veterans Affairs.
The VA guarantee allows qualified veterans to buy a house costing up to $203,000 with no down payment. Moreover, the qualification guidelines for VA loans are more flexible than those for either the Federal Housing Administration (FHA) or conventional loans.
If you are a qualified veteran, this can be an attractive mortgage program. To determine whether you are eligible, check with your nearest VA regional office.
Deposit
A sum of money given to bind the sale of real estate, or a sum of money given to ensure payment or an advance of funds in the processing of a loan. See earnest money deposit.
Depreciation
A decline in the value of property; the opposite of appreciation.
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Detached
Single-Family Home
The most
traditional type of single-family home is one that is
"detached." This type of home stands separate from any
other housing structure and serves as a place of
residence for the occupants.
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Direct
Leveraging Loan Program
The Direct
Leveraging Loan Program makes it easier and more
economical for rural residents to own a home through
lower interest rates and no down payment.
Under this program, the lender offers up to 50 percent
of the mortgage amount as a conventional 30-year,
fixed-rate first mortgage and the Rural Housing Service
(RHS) offers the balance as a second mortgage at an
interest rate that is generally below market.
The RHS is part of the U.S. Department of Agriculture
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Down Payment
The part of the
purchase price of a property that the buyer pays in cash
and does not finance with a mortgage.
Saving for a down payment is usually one of the most
difficult parts of preparing to buy a home. If you
believe you have the needed funds, you are in a better
position to seek pre-qualification from a lender to get
the mortgage that is right for you.
Most homeowners rely on a mortgage from a financial
institution, and most mortgage products require buyers
to include a portion of their own funds towards the
purchase of the home. This is called the down payment.
Lenders feel more secure when buyers include a down
payment, indicating they are less likely to walk away
from their investment if their finances take a downturn.
Historically, buyers usually made a down payment that
totaled 20 percent of the home's purchase price. Under
this scenario, a down payment for a $100,000 home is
$20,000. But today, new mortgage products allow buyers
to put down as little as 3 percent to 5 percent,
provided private mortgage insurance is obtained. The
down payment for a $100,000 home with 5 percent down
payment is just $5,000.
Sources for down payments may come from buyers' savings
accounts, checking accounts, stocks and bonds, life
insurance policies, and gifts.
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Dower
The rights of a
widow in the property of her husband at his death.
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Due-on-sale
Provision
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 mortgage
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Due-on-transfer Provision
This terminology
is usually used for second mortgages. See due-on-sale
provision.
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Deed-in-Lieu
A deed given by a mortgagor to the mortgagee to satisfy a debt and
avoid foreclosure. Also called a
"voluntary conveyance."
Lex Realty - Long Island's Oldest Real Estate Office
Serving Syosset, Woodbury, Jericho, Bethpage, Plainview, Muttontown, Laurel Hollow, the Brookvilles, Oyster Bay, Oyster Bay Cove and all of the New York Area Real Estate Communities
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