Mortgage Glossary

There are a lot of unfamiliar terms that get tossed around during the mortgage process. But don't worry, we've put together this glossary to help you get a better grasp of any terms that may be less than clear.

C
Creditor
A person or business that is owed money.
Customer Credit
Economic indicator that measures the level of outstanding consumer installment debt. Can be used in conjunction with real sales to determine whether cash or credit is fueling growth. Frequency: monthly. Source: Federal Reserve.
D
Damages
The amount recoverable by a person who has been injured in any manner through the act or default of another.
Debenture
An unsecured bond or note.
Debit
In a closing statement or settlement, an item that is charged to a buyer or seller. Compare with credit.
Debit Card (EFT)
A plastic card which looks similar to a credit card, that consumers may use to make purchases, withdrawals, or other types of electronic fund transfers.
Debt
An obligation to pay another.
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.
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.
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.
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.
Default
A breech of the agreement with a lender such as the failure to make loan payments in a timely manner.
Delinquency
The failure to make payments on debts when they are due.
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.
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