Mortgage Glossary
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
balance sheet
A financial statement that shows assets, liabilities, and net worth as of a specific date.
back to top
balloon mortgage
A mortgage that has level monthly payments that will amortize it over a stated term but that provides for a lump sum payment to be due at the end of an earlier specified term.
back to top
balloon payment
The final lump sum payment that is made at the maturity date of a balloon mortgage.
back to top
bankrupt
A person, firm, or corporation that, through a court proceeding, is relieved from the payment of all debts after the surrender of all assets to a court-appointed trustee.
back to top
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.
back to top
before-tax income
Income before taxes are deducted.
back to top
beneficiary
The person designated to receive the income from a trust, estate, or a deed of trust.
back to top
bequeath
To transfer personal property through a will.
back to top
betterment
An improvement that increases property value as distinguished from repairs or replacements that simply maintain value.
back to top
bill of sale
A written document that transfers title to personal property.
back to top
binder
A preliminary agreement, secured by the payment of an earnest money deposit, under which a buyer offers to purchase real estate.
back to top
biweekly payment mortgage
A mortgage that requires payments 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 that would be required if the loan were a standard 30-year fixed-rate mortgage, and they are usually drafted from the borrower’s bank account. The result for the borrower is a substantial savings in interest.
back to top
blanket insurance policy
A single policy that covers more than one piece of property (or more than one person).
back to top
blanket mortgage
The mortgage that is secured by a cooperative project, as opposed to the share loans on individual units within the project.
back to top
bona fide
In good faith, without fraud.
back to top
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.
back to top
breach
A violation of any legal obligation.
back to top
bridge loan
A form of second trust that is collateralized by the borrower's present home (which is usually for sale) in a manner that allows the proceeds to be used for closing on a new house before the present home is sold. Also known as swing loan.
back to top
broker
A person who, for a commission or a fee, brings parties together and assists in negotiating contracts between them. See mortgage broker.
back to top
budget
A detailed plan of income and expenses expected over a certain period of time. A budget can provide guidelines for managing future investments and expenses.
back to top
budget category
A category of income or expense data that you can use in a budget. You can also define your own budget categories and add them to some or all of the budgets you create. Rent is an example of an expense category. Salary is a typical income category.
back to top
building code
Local regulations that control design, construction, and materials used in construction. Building codes are based on safety and health standards.
back to top
buydown account
An account in which funds are held so that they can be applied as part of the monthly mortgage payment as each payment comes due during the period that an interest rate buydown plan is in effect.
back to top
buydown mortgage
A temporary buydown is a mortgage on which an initial lump sum payment is made by any party to reduce a borrower’s monthly payments during the first few years of a mortgage. A permanent buydown reduces the interest rate over the entire life of a mortgage.
back to top
|
