Daily Simple Interest (DSI)
Method of calculating interest on a daily basis, if provided for in the terms of the mortgage note and allowable pursuant to state law. Interest is calculated at the contract rate on the unpaid principal balance on the mortgage loan account based on the number of days that lapse from the date the prior payment is received to the date the current payment is received. Daily simple interest loans generally do not have a monthly grace period for payments received after the due date. Interest accumulates every day.
Deed
A legal document under which ownership of a property is conveyed.
Default
The inability to make timely monthly mortgage payments or otherwise comply with mortgage terms. A loan is considered in default when payment has not been paid after 60 to 90 days. Once in default the lender can exercise legal rights defined in the contract to begin foreclosure proceedings.
Demand Letter
Letter notifying borrower of delinquency or default on the mortgage. This letter may also serve as a notice of intent to foreclose as may be allowable pursuant to state law.
Depreciation
A decline in the value of a house due to changing market conditions or lack of upkeep on a home.
Disbursement
Money paid out for servicing-related charges and expenses, including allowable payments made out of escrow for taxes, insurance premiums or other escrow items.
Due Date
The Due Date is the date on which the Borrower’s monthly installment of principal, interest and where applicable, Escrow, is due as stated in the Note.
