B
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. The principal and interest
on the loan are amortized over a longer period than the actual term of the mortgage.
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.
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.
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. The principal and interest
on the loan are amortized over a longer period than the actual term of the mortgage.
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.
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.
| Real Estate and Loan Glossary of Terms |
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| Capital Real Estate and Loans Nannette Truong Kazan, Broker-Real Estate Specialist |
| Cell: 714 478-4940 |
| Fax: 949 266-8911 |
| Office: 949 679-3400 |
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