Mortgage Glossary – B
A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
Back-end ratio or back ratio
The sum of the house payment and all other monthly debt — credit cards, car payments, student loans and the like — divided by before-tax income. Traditionally, lenders were loath to extend borrowers’ back-end ratios past 36 percent, but they often do now.
Balloon mortgage
A loan that has regular monthly payments which amortize over a stated term but call for a final lump sum (balloon payment) at the end of a specified term, or maturity date, such as 10 years.
Balloon payment
A loan installment that is larger than the other, periodic payments and pays off the remaining principal.
Bankruptcy
A legal proceeding in a federal court to relieve certain debts of a person or a business that is unable to pay its debts. Chapter 7 bankruptcy gets rid of all debts. Chapter 13 allows a borrower with and income to pay bills off over a set period of time.
Bearer
The legal owner of a piece of property.
Bequest
A gift of personal property by will.
Bill of sale
A document that spells out the transfer of property.
Biweekly Mortgage
A mortgage with payments due every two weeks, totaling 26 payments a year.
Blanket Mortgage
A mortgage that covers more than one parcel of real estate.
Bona Fide
In good faith.
Borrower (Mortgagor)
An individual who applies for and receives funds in the form of a loan and is obligated to repay the loan in full under the terms of the loan.
Broker
An individual who brings buyers and sellers together and assists in negotiating contracts for a client.
Buy-Down Mortgage
A mortgage loan with a less than market rate for a set period of time.
Buyer’s Market
Market conditions that favor buyers. With too few buyers and too many properties for sale, the sellers may be forced to make substantial price discounts.
