|
(Disclaimer: Always seek advice
regarding questions for: Legal, Tax, Accounting, Lending, Surveying, Inspecting,
etc. from those other areas of expertise. They may best answer
questions regarding these matters! Additionally, please allow that "typos"
/ errors / changes may occur at this site and / or other sites, herein referred
/ linked to... Information is presented only for your convenience. Any
corrections or suggestions are gladly received! Thanks for visiting our
site! Quigley Team, Realty World - John Horton &
Assoc.)
Balloon 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. Example: A balloon mortgage for $25,000
has interest only payments for 5 years at 12% ($250 per month), with the full
principal of $25,000 due and payable after 5 years.
Bankruptcy: The financial inability to
pay one's debts when due. The debtor surrenders his assets to the bankruptcy
court. An individual typically files for Chapter 7 (all debts wiped out) or
Chapter 13 (establishes a payment plan to pay off debts). A bankruptcy stays
on a credit report for at least 10
years. If it is possible to avoid bankruptcy,
that is generally a better solution.
(Top)
Beneficiary: The person who receives or is to receive the benefits
resulting from certain acts. Example 1: The lender is named as the
beneficiary on a mortgage loan. Example 2: John has Life insurance for
$100,000 with Sally as beneficiary. If John dies, Sally will receive the
$100,000 benefit.
Binder: Definition # 1: A title insurance binder is the written
commitment of a title insurance company to insure the property’s title per the
conditions and exclusions shown on the binder. Definition # 2:
Preliminary agreement, normally secured with earnest money, between a buyer and
a seller as an offer to purchase real estate.
Bi-weekly Mortgage: A mortgage which requires 1/2 the normal monthly
payment every two weeks. Over the course of the year, 26 half payments are made
which is equivalent to 13 full mortgage payments. As a result of this extra
payment the loan amortizes much faster than a loan with normal monthly payments.
(Top)
Blanket Mortgage: A mortgage covering more than one piece of property.
Example: A developer subdivides a land tract into lots and obtains a blanket
mortgage on the whole tract.
Bond: Definition #1: A debt instrument in the capital markets.
The U.S. government, corporations and municipalities use bonds to raise money.
Bonds can also be backed by mortgages. The best known bond is the 30-year
Treasury bond issued by the U.S. government. Definition #2: A sum of
money given to a court to guarantee against a loss. For example if there is a
lien on a property, the owner may remove the lien by posting a bond.
Borrower (Mortgagor): One who applies for a loan secured by real
estate and is responsible for repaying the loan (mortgage).
(Top)
Bridge Loan: An interim loan typically used when the buyer is unable
to sell his/her house but needs money to close the transaction on the house
he/she is buying. The bridge loan is made on the buyer's current residence to
finance the buyer's new residence. The loan is paid off when the buyers current
residence is sold.
Broker: See Real Estate Broker or Mortgage
Broker.
(Top)
Buy Down: A lower interest rate may be given
by paying additional points to the lender to "buy down the rate." The lower rate
may apply for the full duration of the loan or for just the first few years. A
buy
down may be used to qualify a borrower who would otherwise not qualify.
This is because a buy
down results in lower payments, which are easier to qualify for.
Example: A very popular buy
down is the 2-1 buy down. If the interest rate
on the note is 9%, the buy
down results in the rate being 7% (9%-2%) for the first year, 8% (9%-1%)
for the second year, and 9% thereafter.
Buyer’s Broker: An agent hired by a buyer to locate a property for
purchase. The broker represents the buyer and negotiates with the seller’s
broker for the best possible deal for the buyer.
Buyers Market: Market conditions that favor buyers i.e. there are more
sellers than buyers in the market. As a result buyers have ample choice of
properties and may negotiate lower prices. Buyers markets may be caused by an
economic slump or overbuilding.
(Top)
Bylaws: A set of regulations by which an organization conducts its
business. Example: A condominium association prepares bylaws that state
the minimum number of owners to conduct a meeting to decide policies.
Link to>>
C Terms
|
AUSTIN "STATS"