Loan Glossary
Plain-English definitions for every term you'll encounter in the loan process
Showing 2 terms
in General starting with D
D
Debt-to-Income Ratio (DTI)
GeneralThe percentage of a borrower's gross monthly income that goes toward paying debts. Lenders use DTI to assess repayment ability. Most conventional loans require a DTI under 43%–50%.
Default
GeneralFailure to meet the legal obligations of a loan, most commonly by missing payments. Default can trigger foreclosure on real estate loans or repossession on other secured loans.