Glossary of Mortgage Terms

A deed of trust is a legal paper used in real estate deals that gives the title to a property to a neutral third party, called a trustee, as security until the borrower pays off their home loan.

A defeasance clause in your mortgage contract says that once you pay off the loan in full, you will own your home completely.

Delayed financing means buying a house with cash and then getting a mortgage shortly after closing. This way, you get back most or all of the money you put in.

Digital real estate is a term for online assets and virtual properties that have value and can make money or go up in value over time. These include websites, domain names, social media accounts, and virtual land in the metaverse.

A down payment is the money a home buyer puts down up front toward the purchase price. The rest of the money is borrowed from a lender in the form of a mortgage.

Down payment assistance is money from the government, a nonprofit, or an employer that helps a home buyer pay for part or all of the money they need to close on a mortgage.

A drive-by appraisal is a way to find out how much a house is worth by looking at the outside and using public records and sales data from similar homes.

A DSCR loan is a type of mortgage for investment properties that looks at the property's rental income instead of the borrower's personal income, tax returns, or work history to see if they qualify.

A home buyer's earnest money is a deposit the buyer pays to show the seller they're serious about buying their house. It's usually held in escrow until the deal is done.

An easement is a legal right that lets someone other than the property owner use a certain part of the property for a specific purpose without giving up ownership.