| Balance Sheet |
| A financial statement that shows assets, liabilities, and net worth as of a specific date. |
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| 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. |
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| Balloon Payment |
| The final lump sum payment that is made at the maturity date of a balloon mortgage. |
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| 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. |
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| 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. |
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| Basis Point |
| A basis point is 1/100th of a percentage point. For example, a fee calculated as 50 basis points of a loan amount of $100,000 would be 0.50% or $500. |
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| Before-Tax Income |
| Income before taxes are deducted. |
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| Beneficiary |
| The person designated to receive the income from a trust, estate, or a deed of trust. |
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| Binder |
| A preliminary agreement, secured by the payment of an earnest money deposit, under which a buyer offers to purchase real estate. |
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| 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 |
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| Blanket Mortgage |
| The mortgage that is secured by a cooperative project, as opposed to the share loans on individual units within the project. |
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| 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. |
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| Breach |
| A violation of any legal obligation. |
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| 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." |
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| Broker |
| A person who, for a commission or a fee, brings parties together and assists in negotiating contracts between them. |
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| 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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