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 Loan Terms

Loan Definitions
Loan Terms (A)
Loan Terms (B)
Loan Terms (C)
Loan Terms (D)
Loan Terms (E)
Loan Terms (F)
Loan Terms (G)
Loan Terms (H)
Loan Terms (I)
Loan Terms (J & K)
Loan Terms (L)
Loan Terms (M)
Loan Terms (N)
Loan Terms (O)
Loan Terms (P & Q)
Loan Terms (R)
Loan Terms (S)
Loan Terms (T)
Loan Terms (U & V)
Loan Terms (W)
Loan Terms (X,Y,Z)


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The Mortgage Process


Loan Terms and Definitions (B)

Backup Offer: A backup offer is one that is placed second in order after a primary offer when buying property. A backup offer is useful in the sale of real estate just in case the primary offer does not go through.

Balloon Payment: A balloon payment is generally found on loans of a short duration in which the entire balance of the loan is to be repaid at once. The mortgage is usually amortized over a period of 25 to 30 years to lower the monthly payment somewhat, but the balance of the loan is due in 5, 10, or 15 years.

Bankruptcy: Preceedings under federal statutes to relieve a debtor from high instances of debt. The bankruptcy court has jurisdiction to distribute the debtors property in accordance with certain priorities and exemptions.

Beneficiary: A person who benefits from a trust, proceeds in a property, or to which an insurance policy or annuity is paid.

Blanket Mortgage: A certain type of mortgage that is secured by more than one property of a borrower. The blanket mortgage can cover certain properties or all of a mortgagor's property.

Bridge Loan: A loan used to pull equity out of one property, that is being sold, as a down payment on another that is usually being built. This loan is usually short term and is paid off when the original property closes escrow.

Broker: An individual, or company, who represents either the buyer or seller, or both, in a transaction and generally charges a commission for the work that is done.

Buy Down: A buy down is a payment to the lender or an incentive offered by a developer to cause a reduction in the interest rate being charged to the borrower. The buy down is normally used in conjunction with discount points.

Buyer's Market: A time in the real estate market that promotes conditions favoring those who want to buy property. This effect takes place when there are more homes on the market than there are buyers for them.

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