| Term |
Definition |
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5-Year Balloon Mortgage
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The payment is calculated over a stated term and the balance must be
repaid or refinanced at the end of the 5th year.
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7-Year Balloon Mortgage
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The payment is calculated over a stated term and the balance must be
repaid or refinanced at the end of the 7th year.
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Balloon (Payment) Mortgage
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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.
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Bank Draft
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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.
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Bankruptcy
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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.
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Billing Error
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Any mistake in your monthly statement as defined by the Fair Credit Billing Act.
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Binder or "Offer to Purchase"
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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.
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Borrower
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One who receives funds in the form of a loan with the obligation of
repaying the loan in full with interest
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Bridge Loan
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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.
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Broker
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An individual in the business of assisting in arranging funding or
negotiating contracts for a client but who does not loan the money himself.
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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.
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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.
|
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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.
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