Mortgage Glossaryb
What is Balance sheet?
A document showing the financial situation-assets, liabilities and net worth of a person at a specific point in…
What is Balloon Mortgage?
A balloon mortgage is usually a short-term fixed-rate loan which involves small payments for a certain period of time and one large payment for the remaining amount of the principal at a specific…
What is Balloon Payment?
The final lump sum paid at the maturity date of a balloon…
What is Bank check?
See cashier's…
What is Bankruptcy?
Proclamation by a court of an individual's (or organization's) state of insolvency, or inability, to pay debts. Petition may be brought by an individual or his creditors, with a goal of orderly and…
What is Basis point?
A unit of measure: 1/100th of one percent. For example, the difference between a 9.0 percent loan and a 9.5 percent loan is 50 basis…
What is Bearer?
The legal owner of a piece of…
What is Before-tax Income?
Income before taxes are…
What is Bequest?
A gift of personal property by…
What is Bidding War?
A process in which two or more parties attempt to get their offer accepted by a seller, usually by making repeated offers at higher…
What is Bill of sale?
A document that transfers ownership of goods from one person to…
What is Biweekly mortgage?
A payment plan under which one pays one-half of a monthly payment every two weeks, saving interest substantially over the life of the loan. A biweekly mortgage is a mortgage for which one-half…
What is Bona fide?
In good…
What is Bond?
A document representing a right to certain payments on underlying…
What is Borrower (Mortgagor)?
An individual who applies for and receives a loan in the form of a mortgage with the intention of repaying the loan in…
What is Break-Even Point?
The break-even point is the point at which the monthly savings created by a mortgage refinance offsets the cost of refinancing. It can also refer to the point at which the savings generated by paying…
What is 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…
What is Broker?
An individual who assists in arranging funding or negotiating contracts for a client, but does not loan money…
What is Buy-down?
A situation in which the seller contributes money that allows the lender to give the buyer a lower rate and payment, usually in exchange for an increase in sales price. With a refinance, this could…
What is Buyer’s broker?
An agent hired by a buyer to locate a property for purchase and to represent the buyer in negotiations with the seller's broker for the best possible deal for the…
What is Buyer’s market?
Market conditions that favor buyers. With more sellers than buyers in the market, buyers have ample choice of properties and can negotiate lower…
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