Balloon Mortgage
A Balloon Mortgage is usually a short-term loan, and requiring small, periodic installments of principal and interest until completion of the loan term, at which time the balance is due in one lump sum. The periodic payments do not completely amortize the loan, so the final payment is normally considerably larger than the preceding payments. |
|
Balloon Payment
The final payment of a Balloon Mortgage loan, which represents the remaining balance due (and which must be paid in one lump sum at the end of the loan term) is called the Balloon Payment. |
|
Binder, (Insurance)
An Insurance Binder is simply an agreement of temporary insurance protection, constituting written evidence of temporary hazard or title coverage, that remains in effect for a limited time, until it can be replaced by a permanent policy. |
|
Borrower
The "Borrower" in any formal loan agreement, is the party that is granted financial assistance (normally lent at interest) with the expressed or implied legal obligation of repaying the entire sum in full. |
|
Broker
A Broker, broadly defined, is a person who acts as a liaison between two parties during negotiations of some kind. A Mortgage Broker assists (for a fee) borrowers in the search for appropriate lenders and loan programs. A Real Estate broker is a person (or corporation, or partnership) licensed by a state to represent buyers and sellers during real estate transactions (usually for a commission). Real Estate Brokers also supervise subordinate, licensed Real Estate Agents, who in reality provide services on behalf of their broker (In reality, the Real Estate Broker is legally the principal agent in any Real Estate transaction). |
|
Building Line (or "Setback")
The distance from the any of the boundaries (property line) of a piece of property into which improvement (home or other structure) construction may not extend is called the "building line", or "setback". The building line may be determined by a subdivision's filed plat (which is a Plan or map of the land area in question, showing the boundaries of individual properties), by restrictive covenants in deeds or leases, by municipal building codes, zoning ordinances, or other local regulations. |
|
Buydown
A "Buydown", refers to a payment (usually made during the first few years of a mortgage loan term) to the lender from either the seller or the buyer (or a third party, or some combination of these) in order to temporarily procure a lower interest rate. |
|
