Terms starting with the letter B
Balance Sheet
A statement showing a company's financial position at the end of an
accounting period by listing an entity's assets, liabilities and owner's
equity.
Balloon Mortgage
When credit is advanced by note or contract and payment is required
in regular equal installments and the note or contract will mature before
the note or contract is paid in full, a payment which may be larger
than the regular payment will fall due.
Balloon
Payment
The final lump sum payment made at the maturity date of a balloon
mortgage called a "balloon payment".
Bargain
and Sale Deed
Any deed that recites a consideration and purports to convey the
real estate. A bargain and sale deed with a covenant against the
grantor's acts is one in which the grantor warrants that they have done
nothing to harm or cloud the title.
Base
rate or Base Point
The interest rate that is used as a benchmark to set the interest
rate for borrowers. A base rate is sometimes called an index
rate. For example, if you obtain a one-year adjustable-rate
mortgage, your loan rate will be reset once a year to a rate that equals
the loan rate plus a margin. Interest rates on credit cards are
frequently tied to a change in the prime rate.
Beneficiary
The person who receives or is to receive the benefits resulting
from certain acts; one receiving benefits, profits or advantage; one
for whose benefit a trust is created.
Bill
of Sale
A written instrument by which one person transfers or conveys right,
title or interest in personal property to another.
Binder
A title insurance binder is the written commitment of a title insurance
company to insure title to the property subject to the conditions and
exclusions shown on the binder.
Blanket
Mortgage
A single mortgage which covers more than one piece of property.
Borrower
An individual who receives funds in the form
of a loan with an obligation to repay the principal with interest.
Each additional borrower contributes income and credit history to the
qualification process of a loan and whose names appear on all closing
documents. Each additional borrower is liable for the debt and
condition of the property.
Broker
- See Mortgage Broker
Building
Code
Regulations established by local governments setting forth the structural
requirements of buildings.
Buy-Down
When the lender and/or the home builder subsidized 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. These are sometimes used to qualify borrowers for a loan
amount that they would not otherwise qualify for but will be able to
pay in subsequent years as their income increases.
Buyer's
Agent
A broker or salesperson who is engaged by and represents the buyer
in a real estate transaction.
| 
