balance
sheet
A financial statement that shows assets, liabilities, and
net worth as of a specific date.
balloon
mortgage
A mortgage that has level monthly payments that will amortize
it over a stated term but that provides for a lump sum payment
to be due at the end of an earlier specified term.
balloon
payment
The final lump sum payment that is made at the maturity
date of a balloon mortgage.
bankrupt
A person, firm, or corporation that, through a court proceeding,
is relieved from the payment of all debts after the surrender
of all assets to a court-appointed trustee.
bankruptcy
A proceeding in a federal court in which a debtor who owes
more than his or her assets can relieve the debts by transferring
his or her assets to a trustee.
before-tax
income
Income before taxes are deducted.
beneficiary
The person designated to receive the income from a trust,
estate, or a deed of trust.
bequeath
To transfer personal property through a will.
betterment
An improvement that increases property value as distinguished
from repairs or replacements that simply maintain value.
bill
of sale
A written document that transfers title to personal property.
binder
A preliminary agreement, secured by the payment of an earnest
money deposit, under which a buyer offers to purchase real
estate.
biweekly
payment mortgage
A mortgage that requires payments to reduce the debt every
two weeks (instead of the standard monthly payment schedule).
The 26 (or possibly 27) biweekly payments are each equal
to one-half of the monthly payment that would be required
if the loan were a standard 30-year fixed-rate mortgage,
and they are usually drafted from the borrower’s bank account.
The result for the borrower is a substantial savings in
interest.
blanket
insurance policy
A single policy that covers more than one piece of property
(or more than one person).
blanket
mortgage
The mortgage that is secured by a cooperative project, as
opposed to the share loans on individual units within the
project.
bona
fide
In good faith, without fraud.
bond
An interest-bearing certificate of debt with a maturity
date. An obligation of a government or business corporation.
A real estate bond is a written obligation usually secured
by a mortgage or a deed of trust.
breach
A violation of any legal obligation.
bridge
loan
A form of second trust that is collateralized by the borrower's
present home (which is usually for sale) in a manner that
allows the proceeds to be used for closing on a new house
before the present home is sold. Also known as "swing loan."
broker
A person who, for a commission or a fee, brings parties
together and assists in negotiating contracts between them.
See mortgage
broker.
budget
A detailed plan of income and expenses expected over a certain
period of time. A budget can provide guidelines for managing
future investments and expenses.
budget
category
A category of income or expense data that you can use in
a budget. You can also define your own budget categories
and add them to some or all of the budgets you create. "Rent"
is an example of an expense category. "Salary" is a typical
income category.
building
code
Local regulations that control design, construction, and
materials used in construction. Building codes are based
on safety and health standards.
buydown
account
An account in which funds are held so that they can be applied
as part of the monthly mortgage payment as each payment
comes due during the period that an interest rate buydown
plan is in effect.
buydown
mortgage
A temporary buydown is a mortgage on which an initial lump
sum payment is made by any party to reduce a borrower’s
monthly payments during the first few years of a mortgage.
A permanent buydown reduces the interest rate over the entire
life of a mortgage.
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