| Term |
Definition |
| 5-Year Balloon Mortgage
|
The payment is calculated
over a stated term and the balance must be repaid or refinanced at
the end of the 5th year. |
| 7-Year Balloon Mortgage
|
The payment is calculated
over a stated term and the balance must be repaid or refinanced at
the end of the 7th year. |
| Balloon (Payment)
Mortgage |
Usually a short-term
fixed-rate loan which involves small payments for a certain period
of time and one large payment for the remaining amount of the
principal at a specific time. |
| Bank Draft |
A payment method where your
loan payment is automatically deducted from your checking or savings
account, so you don't have to mail in your payment each month.
|
| Bankruptcy |
A proceeding in a federal
court in which a borrower who owes more than his or her assets can
relieve the debts by transferring his or her assets to a trustee.
Different chapters or types of bankruptcy exist. If a person files
bankruptcy, a record of the filing appears on the borrower's credit
report for up to 10 years. |
| Billing Error |
Any mistake in your monthly
statement as defined by the Fair Credit Billing Act. |
| Binder or "Offer to
Purchase" |
A preliminary agreement,
secured by the payment of earnest money, between a buyer and seller
as an offer to purchase real estate. A binder secures the right to
purchase real estate upon agreed terms for a limited period of time.
If the buyer changes his mind or is unable to purchase, the earnest
money is forfeited unless the binder expressly provides that it is
to be refunded. |
| Borrower |
One who receives funds in
the form of a loan with the obligation of repaying the loan in full
with interest |
| Bridge Loan |
A bridge loan is a
short-term loan that covers the time between your closing date of a
home you are buying and the closing date of the home you are
selling. You usually need a contract to sell your current house.
|
| Broker |
An individual in the
business of assisting in arranging funding or negotiating contracts
for a client but who does not loan the money himself. |
| Building Line or
Setback |
Distances from the ends
and/or sides of the lot beyond which construction may not extend.
The building line may be set by a filed plat of subdivision, by
restrictive covenants in deeds or leases, by building codes, or by
zoning ordinances. |
| Business Days |
Always contact your
institution to find out what days it counts as business days under
the Truth in Lending and Electronic Fund Transfer Acts. |
| Buydown |
When the lender and/or the
home builder subsidizes the mortgage by lowering the interest rate
during the first few years of the loan. While the payments are
initially low, they will increase when the subsidy expires.
|
