Mortgage Terms

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The mortgage industry has many unique and confusing terms and acronyms. We hope these descriptions help you to better understand the lending process.

Team Souther Glossary

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There are 5 names in this directory beginning with the letter D.
DD-214
This is an official VA document that explains a veteran's discharge information. Reservists and National Guard members, who don't have a single discharge certificate like the DD-214, should procure their latest annual retirement points summary along with evidence of their honorable service.

Debt-to-Income Ratio (DTI)
This is the ratio of your total monthly debt payments to your gross monthly income. VA-approved lenders use 41 percent as a benchmark. Your DTI can change depending on the loan amount you seek.

Deed-in-Lieu of Foreclosure
An alternative to straightforward foreclosure. The borrower basically returns the house to the bank. A deed-in-lieu will negatively affect your credit score.

Default
When a borrower fails to make loan payments, the loan may be considered to be in "default."

Discount Points
A point is equal to 1 percent of the loan amount. Borrowers can pay points to buy down their interest rate. Paying points is relatively infrequent among most VA borrowers.

Mortgage Calculator

Purchase price
Please enter here the amount you expect to pay for a home.
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Down payment
Down payment is cash that you pay upfront for your home.
20.0%
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Term in years
Number of years you have to pay.
years
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Interest rate (per year)
The percentage of interest that you will pay on your mortgage for a specific term.
%
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Property tax
Enter your property tax here if you know it.
per year
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Home insurance
Most lenders require home insurance. Enter its price here.
per year
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PMI
PMI is Private Mortgage Insurance which is usually required to pay if your Down payment less than 20%.
per month
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Principal & Interest
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Home insurance
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Property taxes
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PMI
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