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Debt-to-Income ratio |
| A comparison of
gross income to housing and
non-housing expenses. With the
FHA, the-monthly mortgage
payment should be no more than
29% of monthly gross income
(before taxes) and the mortgage
payment combined with
non-housing debts should not
exceed 41% of income. |
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|
Deed |
| The document
that transfers ownership of a
property. |
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|
Deed-in-lieu |
| to avoid
foreclosure ("in lieu" of
foreclosure), a deed is given to
the lender to fulfill the
obligation to repay the debt;
this process doesn't allow the
borrower to remain in the house
but helps avoid the costs, time,
and effort associated with
foreclosure. |
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Default
|
| The inability to
pay monthly mortgage payments in
a timely manner or to otherwise
meet the mortgage terms. |
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|
Delinquency |
| Failure of a
borrower to make timely mortgage
payments under a loan agreement.
|
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Discount point |
| normally paid at
closing and generally calculated
to be equivalent to 1% of the
total loan amount, discount
points are paid to reduce the
interest rate on a loan. |
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|
Down
payment |
| The portion of a
home's purchase price that is
paid in cash and is not part of
the mortgage loan. |
