Glossary of Terms - B

A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

Balloon Loan
Mortgage in which the remaining principal balance becomes fully due and payable at a predetermined time. Most of the time, balloon loans have level payments until the note becomes due and payable.

Balloon Payment
The final payment of a mortgage which is larger than the regular payment; it usually extinguishes the debt.

Broker
A person that represents another for a fee in real estate transactions. Real Estate brokers help consumers locate suitable real estate and are paid a fee for their services.

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 established by a filed plat or subdivision, by restrictive covenants in deeds or separately recorded by the developer (see "Declaration of Restrictions" in this Glossary), by building codes, or by zoning ordinances.

Buydown
An interest rate buydown is the temporary reduction of the note rate and resulting monthly payments a borrower pays to the lender. The shortfall between the rate on the note and initial payment made by the borrower is usually paid by a third party such as a seller or builder.

Buyer's Broker

Real estate agent who accepts a Buyer as a client, is legally obligated to abide by a set of fiduciary duties and is required to put the buyer's interests above all others.

 

 

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