Key terms

While working with your mortgage company, it’s important to understand the mortgage terms that may be used so you can have a better (and easier) discussion with your mortgage company.

Debt-to-Income (DTI)

Debt-to-Income (DTI) is a calculation frequently used by mortgage companies when qualifying borrowers for a mortgage or a workout solution to resolve delinquency. It is calculated by comparing how much you pay on your mortgage(s) to your gross monthly income. Click here to calculate your DTI

Deed

A legal document under which ownership of a property is conveyed.

Deed-in-Lieu of Foreclosure (See Mortgage Release)
Default

A borrower is in default when they fail to meet the terms of their loan agreement. Usually this is based on failure to make payments on time.

Deferred Payments

Payments that are authorized to be postponed as part of a workout process to avoid foreclosure.

Deficiency Balance

The difference between what a foreclosed home sold for and the remaining mortgage balance. The mortgage company may require you to pay the amount of the deficiency balance.

Delinquency

Failure to make a payment when it is due. A loan is generally considered delinquent when it is 30 or more days past due.