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

balloon mortgage
A mortgage that provides for a lump sum payment to be due at the end of a specified term.
Learn More >>

balloon payment
The final payment that is due at the maturity date of a balloon mortgage.
Learn More >>

basis point
A basis point is 1/100th of a percentage point.
Learn More >>

before-tax income
Income before taxes are deducted.
Learn More >>

beneficiary
An individual designated to receive the income from a trust, estate, or a deed of trust.
Learn More >>

binder
A preliminary agreement, secured by the payment of an earnest money deposit, under which a buyer offers to purchase real estate.
Learn More >>

biweekly payment mortgage
A mortgage requiring payments every two weeks (instead of a monthly payment schedule).
Learn More >>

blanket mortgage
A mortgage secured by a cooperative project.
Learn More >>

bond
An interest-bearing certificate of debt with a specific maturity date.
Learn More >>

breach
A violation of any legal obligation.
Learn More >>

bridge loan
A second trust collateralized by the borrower's present home that allows the proceeds to be used for closing on a new house before the present home is sold.
Learn More >>

buy down mortgage
A temporary buy down is a mortgage in 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.
Learn More >>