Balloon Loan- Mortgage in which the remaining principal balance becomes fully due and payable at a predetermined time. Most of the time, balloon loans have level payments until the note becomes due and payable.
Balloon Payment- The final payment of a mortgage which is larger than the regular payment; it usually extinguishes the debt.
Bankruptcies- A court action to restructure debt.
Basis- Original cost of property plus value of any improvements put on by the seller minus the depreciation taken by the seller.
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- Written agreement transferring personal property from one person to another.
Binder- Preliminary agreement of sale, usually accompanied by earnest money (term also used with property insurance).
Blanket Mortgage- A mortgage covering more than one property of the mortgage.
Bond- A debt instrument in the capital markets. The US government, corporations and municipalities use bonds to raise money. Bonds can also be backed by real estate loans and the payments from mortgages.
Bridge Financing- A form of an interim loan, generally made between a short term loan and a long term loan when the borrower needs additional time before obtaining permanent financing.
Broker- A person that represents another for a fee in real estate transactions. Real Estate brokers help consumers locate suitable real estate and are paid a fee for their services.
Building Code- Government regulations specifying minimum construction standards.
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 established by a filed plat of subdivision, by restrictive covenants in deeds or leased, by building codes, or by zoning ordinances.
Buy down- An interest rate buy down is the temporary reduction of the note rate and resulting monthly payments a borrower pays to the lender. The shortfall between the rate on the note and initial payment made by the borrower is usually paid by a third party such as a seller or builder.
Buyer's Broker- Agent who takes the buyer as a client, and is obligated to represent their interest above all others, and owes specific fiduciary duties to the buyer.
