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Today's Mortgage Terms starting with D

Default: Failure to fulfill legal obligations of a contract, including failure to make payments on a loan.

Discounted Loan: When the note rate on a loan is lower than the market rate, it is a discounted loan.

Discount Point: A point paid to the lender to permanently lower or acquire down an interest rate. Money must be paid up front to lower the rate.

Down Payment: The amount of cash you must pay down initially for the purchase of your home. For conventional loans, you should aim for a down payment that's at least 20% of your home's value. The reason is lenders generally do not require private mortgage insurance with a down payment of at least 20% of your home's purchase price.

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