Glossary

Debt to Income Ratio Defined
The debt to income ratio is the amount of money you make compared to the amount of debt you have. It is also known as DTI. For example, if you gross $10,000 a month and your debt is $4,000 a month, your debt to income ratio is 40%. [...]

Deed of Reconveyance Defined
Reconveyance is when a mortgage or lien is paid in full and the property is now yours free and clear.
Your lender will record a Deed of Reconveyance at the county stating the lien is paid in full and no longer attached to the property.
For a refinance, the old lender will [...]

Discount Points Defined
A discount point is defined as interest paid upfront in exchange for a lower rate calculated as a percentage of the loan amount.
A point is equal to 1 percent of the loan amount so 1 point would be 1%. A ball park estimate for how much of a drop in rate for [...]

Down Payment Defined
Down payment is the amount of money put toward the purchase price to lower the mortgage amount. If your purchase price is $100,000 and your down payment is $10,000, then your mortgage amount is $90,000. Your down payment is 10 percent of the sales price.
The less money you have toward your [...]