Debt Service
The total amount of credit card, auto, mortgage or other debt upon which you must pay.

Deed of Trust
Used in many western states, the agreement used to pledge your home or other real estate as security for a loan. Similar to a mortgage.

Discount Points (or Points)
The amount paid either to maintain or lower the interest rate charged. Each point is equal to one percent (1%) of the loan amount (i.e. two points on a $100,000 mortgage would equal $2,000).

Down Payment
The difference between the purchase price and that portion of the purchase price being financed. Most lenders require the down payment to be paid from the buyer's own funds. Gifts from related parties are sometimes acceptable, and must be disclosed to the lender.

Due on Sale
A clause in a mortgage agreement providing that, if the mortgagor (the borrower) sells, transfers or, in some instances, encumbers the property, the mortgagee (the lender) has the right to demand the outstanding balance in full.