All of "B" Flashcards
Balance Sheet
A statement of the assets, liabilities and capital. (Balance of income)
Balloon Mortgage
A loan that requires payments for a specified time where the borrower pays off the full balance in a lump sum. (If under HOEPA, minimum is 5 years)
Balloon Payment
A larger than usual one time payment at the end of the loan. (Where you can owe a big amount at the end of the loan)
Bait and Switch
The action (generally illegal) of advertising goods which are an apparent bargain, with the intention of substituting inferior or more expensive goods.
Basis Point
Used to calculate the interest rate in real estate transaction. (Describes % change in the value)(1 basis point is equal to 1/100th of 1% or 0.01%)
Bankruptcy
When a debtor obtains financial relief. (cannot afford to pay off any payments)
Blanket Mortgage
A single mortgage that covers multiple properties, with the group of assets serving as collateral for the loan. (Real estate developers and larger investors often purchase more than one property at a time, so a blanket mortgage allows them to simplify those transactions with one loan)
Bona Fide
Made in good faith without fraud. (Genuine, real intentions)
Bona-Fide Nonprofit Organization
Any organization that is exempt from taxation under Section 501(c)(3) of the Internal Revenue Code of 1986, or any subsequent corresponding internal revenue code of the United States, as amended from time to time
Borrower(Mortgagor)
Someone who mortgages property
Borrowers Signature Authorization
A form signed by the applicant to authorize the info from the third party for the mortgage loan.
Bridge Loan
A short-term loan that uses the borrowers equity to make a downpayment on a new home. (Used to bridge the gap between buying a home and selling your previous one)
Building Code
A law or regulation setting standards for construction, maintenance,occupancy or appearance of buildings/units
Buy-Down
Money paid by the buyer of a house to reduce the mortgage interest payments. (A way to obtain a lower interest rate by paying discount points at closing)
Buy-Down Account for Temporary Buy-Downs
When a portion is released each month to reduce the borrowers payments. (Interest rate is reduced)