Which term describes a charge that is a debit in the Closing Disclosure?

The term that describes a charge that is a debit in the Closing Disclosure refers to amounts that the borrower needs to pay at closing. In this context, the payoff of existing loans is considered a debit because it represents an amount that is being deducted from the borrower's proceeds to satisfy a debt owed on an existing mortgage. This is critical in the transaction as it ensures that any prior liens on the property are cleared, allowing for a smooth transfer of ownership.

When evaluating the other options, property taxes can function as a debit when they are due at closing, but they are generally not related to existing loans in the same way that the payoff is. A fee to the lender is typically a charge for services rendered and may also appear as a debit, but it is not directly tied to settling existing debts. Inspectors' fees, while they can also appear as debits in the Closing Disclosure, pertain to services provided and do not relate specifically to the payoff of loans. Thus, the distinction lies in the nature of the charge concerned with fulfilling existing financial obligations associated with the property.