Real Estate Glossary

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Balloon Mortgage: A mortgage loan that requires the remaining principal balance be paid at a specific point in time.

Balloon Payment: The final lump sum payment that is due at the termination of a balloon mortgage.

Bankruptcy: A court action to restructure debt.

Beneficiary: The lender named on the mortgage note. One entitled to the proceeds of property held in trust, also proceeds of wills, insurance policies, or trusts.

Bill of Sale: A written document that may be presented in order to transfer title to personal property from seller to buyer.

Biweekly Mortgage: A mortgage in which you make payments every two weeks instead of once a month. Instead of making twelve monthly payments during the year, thirteen is made. The extra payment reduces the principal, substantially reducing the time it takes to pay off a thirty year mortgage.

Blanket Encumbrance: A single mortgage or trust deed which covers more than one piece of real estate.

Bona Fide: In good faith, without fraud or deceit; authentic; sincere.

Bond Market: The market for all types of bonds, whether on an exchange or over-the-counter. Lenders follow the bond market intensely because as the yields of bonds go up and down, fixed rate mortgages will just about do the same thing. The same factors that affect the Treasury Bond market also affect mortgage rates at the same time and therefore, rates change throughout the day.

Breach: Violation of an obligation in a contract.

Bridge Loan: A loan for buyers who need money to close on a new home before they can sell their present home. Bridge loans are short-term, usually up to 1 year. Once the sale on the old home is finished, you can pay off the loan. Bridge loans are also called interim financing, swing loans or turnarounds.

Broker: A professional who offers a commission- or fee- based service to bring together parties interested in buying, selling, exchanging, or leasing real property

Brokerage: For a commission or fee, bringing together parties interested in buying, selling, exchanging, or leasing real property.

Buydown: A cash payment, usually measured in points, to a lender in order to reduce the interest rate a borrower must pay. The seller may increase the sales price to cover the cost of the buydown.