back-end ratio
|
A comparison of a borrower's monthly expenses to their gross
monthly income used to assess their ability to carry a mortgage
or other loan. |
balloon mortgage
|
A mortgage loan that requires the remaining principal balance
be paid at a specific point in time. For example, a loan may be
amortized as if it would be paid over a thirty year period, but
requires that at the end of the tenth year the entire remaining
balance must be paid. |
balloon payment
|
The final lump sum payment that is made 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. |
bargain and sale deed
|
A deed that conveys real estate, generally lacking a
warranty. The grantor will thus claim to have ownership but will
not defend against all claims. |
basis point
|
One 100th of 1%. |
below-grade
|
Any structure or a portion of a structure located underground
or below the surface grade of the surrounding land. |
bill of sale
|
A written document that transfers title to personal
property. |
bi-weekly 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. |
blanket loan
|
The mortgage that is secured by a cooperative project, as
opposed to the share loans on individual units within the
project. |
blockbusting
|
The illegal act of engaging in blockbusting, by encouraging a
party to sell on the grounds that the value of the property will
decrease due to the presence of persons normally protected under
equal opportunity laws. |
bond market
|
Buying and selling of thirty year treasury bonds. Lenders
follow this market because as the yield of bonds go up and down,
fixed rate mortgages generally follow the trend. |
boot
|
In a 1031 exchange, a taxable situation, whether cash or
mortgage. |
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." |
broker
|
A person who, for a commission or a fee, brings parties
together and assists in negotiating contracts between them. |
buffer zone
|
A strip of land separating one parcel from another. |
building code
|
Local regulations that control design, construction and
materials used in construction. Building codes are based on
safety and health standards. |
bungalow
|
A small, one-storey home built in a turn of the century
style, often with a prominent front verandah. |
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. |
|
buyer agency
|
A business relationship where the broker agrees to work only
for the buyer in a transaction. Buyer agents are loyal to the
buyer and act in the buyer's best interest. |
