| BACK-END DEBT RATIO |
This refers to the
borrower's debt ratio and is calculated using a borrower’s total of
monthly payments due on credit obligations divided by the borrower’s
gross monthly income. It’s expressed as a percentage. See also DEBT
RATIO.
|
| BACK-TO-BACK ESCROW |
Escrow set up to
take care of the simultaneous purchase of one property and the sale of
another property by the same party.
|
| BALANCE SHEET |
Financial report or
statement in tabular form showing personal or corporate assets,
liabilities, and equities as of a specified date.
|
| BALLOON MORTGAGE |
Mortgage that
includes level monthly payments that will fully amortize it over a
stated term, but provides for a balloon payment due at the end of an
earlier specified term.
|
| BALLOON PAYMENT |
Remaining balance of
a mortgage that must be paid in a lump sum either at the end of the
mortgage term or at the end of a specified earlier period. The
amount may represent slightly more than a monthly payment or may be
substantial. It occurs because the fixed installment did not fully
amortize the mortgage, either accidentally or intentionally.
So, it is a large payment due at the end of a loan contract. Equal to
the remaining principal balance plus any interest and charges due.
|
| BANKRUPTCY (BK)
|
|
Federal court proceedings to relieve the debts of an
individual or business unable to pay its creditors. See also CHAPTER 7
BK and CHAPTER 13 BK.
|
| BASIS POINT |
1/100th of 1%.
For example 5 1/2 basis points equal 5.5/100=0.055% or 0.00055.
|
| BEDROOM COMMUNITY |
Suburban section from
which a large number of residents commute to work in a n adjoining or
nearby metropolitan area.
|
| BENEFICIARY |
One in whose favor a
trust operates, or in whose behalf the income from a trust estate or
trust deed is drawn. Lender on the security of a Note. Also,
one who receives funds from a life insurance policy.
|
| BENEFICIARY'S
DEMAND |
Written instructions
by a beneficiary under a deed of trust or mortgage stating and demanding
the amount necessary for payoff of a lien in full.
|
| BEST'S KEY RATING
GUIDE |
Publication issued
by the A.M. Best Company, which establishes ratings for hazard insurance
carriers by evaluating their assets and liabilities.
|
| BILL OF SALE |
Written document
that transfers title to personal property.
|
| BINDER INSURANCE |
Written evidence of
temporary hazard or title coverage that runs for a limited time and must
be replaced by a permanent policy.
|
| BLANKET MORTGAGE |
Lien on more than
one parcel or unit of land, frequently incurred by subdividers or
developers who have purchased a single tract of land for the purpose of
dividing it into smaller parcels for sale or development. Also known as
blanket trust deed.
|
| BLUEPRINTS |
Also identified as
architectural plans, these are provided by a licensed architect, a
custom builder or can be provided by a factory-built home supplier. They
provide a complete overview of how the project will be constructed,
including all necessary architectural and structural issues.
|
| BORROWER |
Mortgagor who
receives funds in the form of a loan with the obligation of repaying the
loan in full with interest, if applicable.
|
| BORROWER SAVINGS |
|
The monthly savings a customer will experience by
consolidating/paying off debt with a debt consolidation loan. Monthly
savings equals current monthly payments less new monthly payments.
|
| BREACH |
Violation of any
legal obligation.
|
| BREAK-EVEN POINT |
In residential or
commercial property, the figure at which occupancy income is equal to
all required expenses and debt service.
|
| BRIDGE FINANCING |
Loan spanning the
gap between the termination of one (generally short-term) loan and the
start of another (generally permanent long-term) loan. Also known as gap
financing.
|
| BRIDGE (OR SWING)
LOAN |
|
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.
|
| BROKER |
Individual employed
on a fee or commission basis as agent to bring parties together and
assist in negotiating contracts between them.
|
| BUILDERS RISK
INSURANCE |
Fire and extended
coverage insurance for a building under construction. Coverage increases
automatically as the building progresses and terminates at completion.
|
| Building Code |
Regulations that
control design, construction, and materials used in construction.
|
| BUILDING PERMIT |
Written permission
by a local government for the construction of a new building or for
making improvements.
|
| BUILT-INS |
Cabinets, ranges,
and ovens, or similar features that are part of the structure.
|
| BUSINESS FOR SELF (BFS)
|
|
Customers who own their own business. Another word for
self-employed.
|
| BUSINESS LICENSE |
A license that
authorizes a business to operate and is typically required and issued by
the city in which the business is located.
|
| BUSINESS
INTERRUPTION INSURANCE |
Compensation to a
business owner or operator for income lost when the business is closed
due to a fire or other insured hazard.
|
| BUYDOWN ACCOUNT |
| 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. |
