Construction Terminology

Construction Terms

D

Discount Rate
A basis for interest rates, the rate charged by the Federal Reserve System on loans to banks.

Down Payment
Money required by banks secure a loan. The down payment will reduce the principal amount of the loan. This will
insure that the buyer has some amount of monetary investment in the house.

Draw
Disbursements of money that are made from a construction loan during the construction of a house. These are usually
made at specified stages of the construction.

Due On Sale
A clause in a mortgage which requires that the mortgage be paid out in full upon the sale of the house.

Debt Ratio
Also known as Debt-to-Income ratio. A comparison of the total monthly payments of all of the borrower's debts
(including the mortgage) with the gross monthly income of the borrower, used to assess borrower's ability to pay
mortgage.

Deed Trust
A legal instrument conveying legal title to a property to a trustee, may contain statements as to powers of trustee,
duties of trustee etc

Disbursement
An expenditure of money.

Deed
A legal document conveying title to a property.

Depreciation
The lessening of the value of a property over time

DMR
Department Of Marine Resources is a government agency that enforces laws pertaining to water quality

.Due On Sale
A clause in a mortgage which requires that the mortgage be paid out in full upon the sale of the house.
 
Category Construction Glossary