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| • | Balance Sheet - A financial statement that shows assets, liabilities, and net worth as of a specific date. |
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| • | 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 specific time. |
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| • | Balloon Mortgage 5-Year - The payment is calculated over a stated term and the balance must be repaid or refinanced at the end of the 5th year. |
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| • | Balloon Mortgage 7-Year - The payment is calculated over a stated term and the balance must be repaid or refinanced at the end of the 7th year. |
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| • | Bank Draft - A payment method where your loan payment is automatically deducted from your checking or savings account, so you don't have to mail in your payment each month. |
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| • | 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. |
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| • | Bankruptcy - A proceeding in a federal court in which a borrower who owes more than his or her assets can relieve the debts by transferring his or her assets to a trustee. Different chapters or types of bankruptcy exist. If a person files bankruptcy, a record of the filing appears on the borrower's credit report for up to 10 years. |
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| • | Before-Tax Income - Income before taxes are deducted. |
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| • | Beneficiary - The person designated to receive the income from a trust, estate, or a deed of trust. |
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| • | Bill of Sale - A written document that transfers title to personal property. |
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| • | Billing Error - Any mistake in your monthly statement as defined by the Fair Credit Billing Act. |
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| • | Binder or "Offer to Purchase" - A preliminary agreement, secured by the payment of earnest money, between a buyer and seller as an offer to purchase real estate. A binder secures the right to purchase real estate upon agreed terms for a limited period of time. If the buyer changes his mind or is unable to purchase, the earnest money is forfeited unless the binder expressly provides that it is to be refunded. |
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| • | Blanket Insurance Policy - A single policy that covers more than one piece of property (or more than one person). |
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| • | 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. |
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| • | Borrower - One who receives funds in the form of a loan with the obligation of repaying the loan in full with interest |
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| • | Bridge Loan - A bridge loan is a short-term loan that covers the time between your closing date of a home you are buying and the closing date of the home you are selling. You usually need a contract to sell your current house. |
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| • | Broker - An individual in the business of assisting in arranging funding or negotiating contracts for a client but who does not loan the money himself. |
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| • | Building Code - Local regulations that control design, construction, and materials used in construction. Building codes are based on safety and health standards. |
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| • | Building Line or Setback - Distances from the ends and/or sides of the lot beyond which construction may not extend. The building line may be set by a filed plat of subdivision, by restrictive covenants in deeds or leases, by building codes, or by zoning ordinances. |
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| • | Business Days - Always contact your institution to find out what days it counts as business days under the Truth in Lending and Electronic Fund Transfer Acts. |
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| • | Buy Down - Money advanced by an individual (seller, builder, etc.) to reduce monthly payments for a home mortgage either during the entire term or for an initial period of years. |
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