D-E-F

Default: Breach of a mortgage contract (not making the required payments).
Density: The number of homes built on a particular acre of land. Allowable densities are determined by local jurisdictions.
Debt-to-Income Ratio: 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 net effective income (FHA/VA loans) or gross monthly income (conventional loans).
Down Payment: The difference between the sales price and the mortgage amount. A down payment is usually paid at closing.
Due-on-Sale: A clause in a mortgage contract requiring the borrower to pay the entire outstanding balance upon sale or transfer of the property.
Earnest Money: A sum paid to the seller to show that a potential purchaser is serious about buying.
Easement: The right-of-way granted to a person or company authorizing access to the owner's land; for example a utility company may be granted an easement to install pipes or wires. An owner may voluntarily grant an easement, or can be ordered to grant one by a local jurisdiction.
Equity: The difference between the value of a home and what is owed on it.
Escrow: The handling of funds or documents by a third party on behalf of the buyer and/or seller.
Federal Housing Administration: A federal agency that insures mortgages with lower down payment requirements than conventional loans.
Fixed Rate Mortgage: A mortgage with an interest rate that remains constant over the life of the loan.
Fixed Schedule Mortgage: Mortgage with a payment schedule established at closing for the life of the loan. The payment and interest are not necessarily level.

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01/02/08 01:40 AM