Mortgage Terms

A, B, C, D-E, F-G, H-K, L-M, N-Q, R-S, T-Z

 

Balloon Payment Mortgage
usually a short-term mortgage with regular monthly payments that are insufficient to pay off the loan at the end of the term. A lump sum payment (balloon payment) is then required at the maturity date.

Beneficiary
the lender named on the mortgage note.

Bi-weekly Mortgage
a type of mortgage in which payments equal to one-half of the regular monthly payment are scheduled every two weeks, rather than monthly. This arrangment results in the equivalent of 13 months of payments in a year, substantially less paid in interest, and a much quicker payoff on the loan.

Blanket Mortgage
a mortgage covering multiple properties.

Bridge Financing
an interim loan, made when a borrower needs additional time before obtaining permanent financing. A bridge loan is often required between the purchase of a new home, and the sale of the borrower's current home.

Broker
see Mortgage Broker.

Buydown
a temporary reduction in an interest rate made by paying a lump sum or discount points up front.