This glossary is Alphabetical please choose your letter below.
- The amount of the original loan remaining to be paid. It is equal to the loan amount less the sum of all prior payments of principal.
- A balloon mortgage is one where a lump sum, the balance of the loan principal, becomes payable at the end of the term. A mortgage can be interest only with the whole principal due at the end of the term or it may be calculated to amortize over a longer period, say 30 years, but with the outstanding principal balance payable at the end of, say, 10 years.
- See balloon mortgage.
- A federal law Whereby a person's assets are turned over to a trustee and used to pay off outstanding debts; this usually occurs when someone owes more than they have the ability to repay.
- Bimonthly Mortgage
- A mortgage on which the borrower pays half the monthly payment on the first day of the month, and the other half on the 15th.
- Biweekly Mortgage
- A mortgage on which the borrower pays half the monthly payment every two weeks. Because this results in 26 (rather than 24) payments per year, the biweekly mortgage amortizes before term.
- Blanket Mortgage
- A mortgage covering at least two pieces of real estate as security for the same mortgage. This provides greater security for the Lender. It may be possible to get a "partial" release so the Borrower can sell one of the properties provided a suitable principal reduction is made.
- 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. The mortgage is not actually the loan, it just creates the security interest in the property. It is the promissory note that spells out the repayment terms and interest.
- Break-Even Point
- The point at which total income is equal to total expenses.
- Bridge Financing
- See bridge loan.
- Bridge loan
- A short-term loan, usually from a bank, that "bridges" the period between the closing date of a home purchase and the closing date of a home sale.
- An individual in the business of assisting in arranging funding or negotiating contracts for a client buy who does not loan the money himself. Brokers usually charge a fee or receive a commission for their services.
- Builder Financed Construction
- Having the builder finance the construction.
- Building Code
- A set of regulations based on agreed upon safety standards within a specific area, a building code is a regulation that determines the design, construction, and materials used in building.
- A detailed record of all income earned and spent during a specific period of time.
- Money advanced by an individual (builder, seller, etc.) to reduce the monthly payments for a home mortgage either during the entire term or for an initial period of years.