Back-end Ratio - A calculation that compares a borrower's total debt (PITI and other monthly debt payments) to gross monthly income.
Backup Offer - A secondary offer to buy propert, used in case the initial offer falls through.
Balloon Mortgage - A loan in which monthly payments are not large enough to repay the balance by the end of the term. As a result, the final payment due is the lump sum of the remaining principal.
Balloon Payment - A lump sum principal payment due at the end of some mortgages or other long term loans.
Bankruptcy - A debtor that, upon voluntary petition or one invoked by the debtor's creditors, is judged legally insolvent.
Base Loan Amount - The amount upon which the loan payments are based.
Base Line - A survey line used to establish township lines for government surveys.
Basis Point - One one-hundredth of one percentage point.
Bearing Wall - Any wall supporting a floor or the roof of a building.
Bedrock - The solid rock that beneath loose material, such as soil, sand, or gravel.
Beneficiary - The lender or bank who makes a loan, also called a mortgagee.
Beneficiary Statement - The statement of a lender that shows the remaining balance and other information about a loan.
Bill of Sale - An instrument that transfers ownership of personal property.
Binder - Sometimes known as an offer to purchase or an earnest money request. A binder is the acknowledgment of a deposit along with a brief written agreement to enter into a contract for the sale of real estate.
Blanket Mortgage - A mortgage that covers a group or class of things or properties instead of one or more things mentioned individually.
Blind Ad - An ad that does not identify the party placing the ad.
Block Busting - The illegal practice of inducing homeowners to sell their properties by telling the inhabitants that people of a different race or religion, moving into the area, will cause property values to decline.
Bona Fide Purchaser - A purchaser in good faith, for a valuable consideration without notice of any defect in title.
Bond - An agreement that insures one party against loss by acts of another party.
Borrower - Someone who receives funds that must be repaid, usually with interest.
Boundary - A theoretical line that marks the limit of an area of land.
Breach of Contract - Failure to do something that is required in a contract.
Bridge Financing (Bridge Loan) - A short-term loan for borrowers who need more time to find long-term financing.
Broker, Mortgage - A mortgage broker is an individual or firm that matches borrowers to lenders and appropriate loan programs.
Broker, Real Estate - A real estate broker is licensed to handle property transactions and operate an individual brokerage firm.
Building Code - Uniform code established and enforced by local government for the structural safety of buildings.
Building Inspector - One who enforces the building code and ensures that work is performed correctly.
Building Permit - A permit issued by a local government agency that allows building construction or renovation.
Bundle of Rights - The various rights an owner has in a property.
Buydown - A payment made to reduce a borrower's monthly loan payment.
Buyer’s Market - A market that has more sellers than buyers.
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