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Dealer charges
Charges for features sold separately by an auto dealer, such as
rustproofing, undercoating, extended warranties or additional options.
Dealer holdback
The difference between the amount on the invoice and what an auto
dealer pays the manufacturer. This difference can be 2% to 3% of
the car's MSRP.
Dealer incentives
Reduced-price programs that auto manufacturers can offer their dealers
to boost sales of less popular models or reduce inventories. The
dealers can then decide whether to pass these savings on to their
customers.
Dealer invoice
The amount that auto manufacturers charge dealers for new cars,
including the options.
Dealer sticker
price
The Monroney sticker price plus the suggested mark-up for features
the dealer installs himself.
Debt
An amount of money owed by one person, company, organization or
other entity to another.
Debt consolidation
A single loan to pay off multiple debts, usually over a longer term.
This is a popular use of home equity loan or line of credit.
Debt-to-income
ratio
The percentage of your total debt compared to your total income
before taxes. Many lenders like to see your debt (including your
mortgage payments) be no more than 36% of your total income.
Deed (warranty
or quit-claim)
A document that legally transfers ownership of real estate from
a seller to a buyer. It's delivered to the buyer at closing. Before
making a loan, a lender will usually require a title search or a
title report to make sure the real estate that is to secure the
loan is legally owned by the borrower.
Default
Failure to make mortgage payments on time or to meet other terms
of a loan. Default can lead to foreclosure.
Delinquency
Failure to make payments on time.
Depreciation
A decline in the value of property due to wear and tear or any other
reason. The opposite of appreciation.
Destination
charge
The actual costs the dealer pays for shipping and delivering a new
car. The dealer then charges you this fee, with no mark-up.
Disclosures
Information given to consumers about their loans.
Discount points
Typically, an amount paid at closing to the lender in conjunction
with a mortgage loan in order to lower the interest rate. One discount
point equals one percentage point of the loan amount.
Document preparation
fee
Fee required to cover the cost of preparing the necessary documents
for closing.
Document drawn
date
The date on which your legal documents are prepared for closing.
Down payment
The amount of cash you pay toward the purchase of your home to make
up the difference between the purchase price and your mortgage loan.
Down payments often range between 5% and 20% of the sales price
depending on many factors, including your loan, your lender, your
credit history and so forth.
Draw
The process of obtaining an advance against your available credit
under your line of credit.
Draw period
The period during which a borrower can obtain advances from the
available line of credit. At the end of the draw period, borrowers
may be able to renew the credit line or may be required to pay the
outstanding balance in full or in monthly installments.
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