Balloon Payment
A final lump sum payment that’s due, payment is often made at the end of the mortgage term
Bankruptcy
Bankruptcy is a legal declaration that you are unable to repay your debts. This can have a severe impact on your credit and your ability to borrow money in the future. When you file for bankruptcy, your assets are liquidated and used to pay off your creditors. This can include your home, car, and other…
Before-Tax Income
Is income that is earned before taxes are deducted. This income is also known as “gross income.”
Biweekly Payment Mortgage
A mortgage with payments due every two weeks (instead of monthly) If you’re looking to save money on your mortgage, you may want to consider a biweekly payment mortgage. This can help you save money on interest and pay off your mortgage faster.
Blind Offer
When a buyer makes an offer without seeing the property, even when possible, that offer is a “blind offer.”.A blind offer is considered a serious offer and should be taken seriously by the seller. It’s most commonly used in a highly competitive area and/or circumstance and used as an attempt to be first and win…
Bona Fide
Bona fide means in good faith and without fraud. It is often used in business deals or other legal agreements to confirm that both parties are acting in good faith and with the intention of carrying out their obligations.
Bridge Load
A short-term loan secured by the borrower’s current home (which is usually for sale) that allows the proceeds to be used for building or closing on a new house before the current home is sold. Also known as a “swing loan.”
Broker
An agent between providers and users of products or services, such as a mortgage broker or real estate broker.See also “Mortgage Broker.”
Building Code
Is a set of regulations that must be followed during the construction, maintenance, and occupancy of a building. The purpose of these codes is to protect the safety, health, and welfare of the public. There are many different types of building codes, each with its specific requirements. Some of the most common codes include fire…
Buydown
A buydown is an arrangement in which a property developer or another third party provides an interest subsidy to reduce the borrower’s monthly payments, typically in the early years of the loan. This arrangement can be beneficial for both the borrower and the lender. For the borrower, it can help make monthly mortgage payments more…