A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
B
- Balloon
mortgage
Usually a short-term loan involving small payments for a set period of time and one large
payment for the remaining principal balance at a specified time.
- Balloon
payment
The final lump sum paid at the maturity date of a balloon mortgage.
- Bankruptcy
A proceeding in a federal court in which a debtor who owes more than his or her assets can
relieve the debts by transferring his or her assets to a trustee. Usually, at least 2
years must elapse from the discharge of the bankruptcy before lenders will consider making
a loan to someone who had declared.
- Beneficiary
The person designated to receive the income from a trust, estate, or a deed of trust.
- Bill of
sale
A written document that transfers title to personal property.
- Binder or "Offer to Purchase"
A preliminary agreement, secured by the payment of earnest money, between a buyer and
seller as an offer to purchase real estate. A binder secures the right to purchase real
estate upon agreed terms for a limited period of time. If the buyer changes his mind or is
unable to purchase, the earnest money is forfeited unless the binder expressly provides
that it is to be refunded.
- Biweekly
payment mortgage
A plan to reduce the debt every two weeks (instead of the standard monthly payment
schedule). The 26 (or possibly 27) biweekly payments are each equal to one-half of the
monthly payment required if the loan were a standard 30-year fixed-rate mortgage. The
result for the borrower is a substantial savings in interest.
- Blanket
mortgage
A mortgage covering at least two pieces of real estate as security for the same mortgage.
- Bond
An interest-bearing certificate of debt with a maturity date. An obligation of a
government or business corporation. A real estate bond is a written obligation usually
secured by a mortgage or a deed of trust.
- Borrower (Mortgagor)
One who applies for and receives a loan in the form of a mortgage with the intention of
repaying the loan in full.
- Bridge
loan
A second trust that is collateralized by the borrower's present home allowing the proceeds
to be used to close on a new house before the present home is sold. Also known as
"swing loan."
- Broker
An individual in the business of assisting, arranging, funding or negotiating loans for a
client, but does not loan the money himself.
- Buy down
When the lender and/or the home builder subsidizes the mortgage by lowering the interest
rate during the first few years of the loan. While the payments are initially low, they
will increase when the subsidy expires.
- Building line or setback
Distances from the ends and/or sides of the lot beyond which construction may not extend.
The building line may be established by a filed plat of subdivision, by restrictive
covenants in deeds or leases, by building codes, or by zoning ordinances.
A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
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