|
|
 |
 |
 |
 |
 |
Mortgage glossary: Letter B |
|
|
 |
|
 |
| |
Balloon Mortgage A type of mortgage where the remaining balance must be paid in full at the end of a preset term. A five-year balloon mortgage might be amortized over a 30-year period, but the remaining balance is due, in full, at the end of five years.
Basis Point A basis point is a 1/100 percent change in rate. A move of 50 basis points would cause a 30-year fixed mortgage rate to change by 1/8 percent.
Bridge Loan A short-term loan primarily used to pull equity out of one property for a down payment on another. This loan is paid off when the original property sells. Since they are short-term loans, sometimes lasting just a few weeks, usually only retail banks offer them. Usually the borrower doesn't make any monthly payments and only pays off the loan when the property sells.
Bundling Bundling is the act of putting together several real estate or mortgage services in one package. Instead of paying for an appraisal here or an inspection there, some or all of the buyer's services are packaged together. Usually a bundle offers discounts on all services, although when they're bundled it's hard to parse all the services to see whether you're getting a good deal.
Buydown Paying more money to get a lower interest rate is called a permanent buydown, and it is used in conjunction with discount points. The more points, the lower the rate. A temporary buydown is a fixed rate mortgage that starts at a reduced rate for the first period, and then gradually increases to its final note rate. A temporary buy-down for two years is called a 2-1 buydown. For three years it's called a 3-2-1 buydown.
|
|
| |
|
|
 |
|
 |
| |
|
Tags
aus, bonus checks, chapter 13, chapter 7, debt ratio, debt ratios, dpap, fannie mae, freddie mac, gap, hazard insurance, home loan, house payment, insurance policy, irs, loan application, loan approve, loan inspector, loan officer, loan processor, loan programs, loan terms, mortgage, mortgage application, mortgage bad credit, mortgage bankruptcy, mortgage insurance, mortgage loan, mortgage loans, mortgage payment, mortgage payments, paycheck, pmi, real estate, real estate agent, regular house loan, second mortgage, social security number, student loans, W-2Show all tags
|
: