B – balloon mortgage, bankruptcy, basis point, beneficiary…more
BALLOON (PAYMENT) MORTGAGE – usually a short-term fixed rate loan which involves small payments for a certain period of time and one large payment for the remaining amount of the principal at a time specified in the contract.
BANKRUPTCY – a person, firm or corporation that, though a court procedure, is relieved from the payment of all debts after the surrender of all assets to a court appointed trustee. Find out more information in our bad credit mortgage section.
BASIS POINT – one one-hundredth of one percent. Used primarily to describe changes in yield or price on debt instruments, including mortgages and mortgage-backed securities.
BENEFICIARY – a person who benefits from a life insurance policy, will, contract or deed of trust. In the latter case, the lender is the beneficiary.
BENEFICIARY STATEMENT – the lender’s statement under a deed of trust, detailing the remaining principal balance, monthly payment, and interest rate on the loan.
BILL OF SALE – a written document signed by a seller that transfers title of personal property.
BIWEEKLY MORTGAGE – a type of fixed rate mortgage with payments for half the usual monthly amount scheduled every two weeks. Because you make the equivalent of 13 months of payments every year, the loan term is shortened from 30 years to 18 or 19 years, and total interest cost are substantially lower.
BORROWER – one who receives funds in the form of a loan with the obligation of repaying the loan in full with interest.
BREACH – failure to perform under a contract or the violation of a legal obligation.
BRIDGE LOAN – a form of second mortgage or deed of trust collateralized by the borrower’s present home (usually for sale) in a way which allows the proceeds of the loan, to be used to close the loan on the new home they are buying, before the present home is sold. Also sometimes referred to as a “swing loan.”