GLOSSARY OF TERMS

A   B   C   D   E   F   G   H    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.
 
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.
 
balloon payment
The final lump sum payment that is made at the maturity date of a balloon mortgage.
 
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.
 
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.
 
before-tax-income
Income before taxes are deducted.
 
beneficiary
The person designated to receive the income from a trust, estate, or a deed or trust.
 
binder
A preliminary agreement, secured by the payment or an earnest money deposit, under which a buyer offers to purchase real estate.
 
bi-weekly payment mortgage
A mortgage that required 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 saving in interest.
 
blanket mortgage
The mortgage that is secured by a cooperative project, as opposed to the share loans on individual units within the project.
 
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.
 
breach
A violation of any legal obligation.
 
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 a "swing loan".
 
broker
A person who, for a commission or a fee, brings parties together and assists in negotiating contracts between them.
 
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.

Return to TOP