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Mortgage Loan Glossary - 'B'

Use the alphabet letters below to navigate to the words in this glossary.

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

- B -

Balloon Mortgage

A loan with regular monthly payments over a stated term that requires a final lump sum payment (balloon payment) at the end of a specified term, or maturity date, such as ten years.
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Balloon Payment

The final lump sum payment (typically larger than the regular monthly payment) that is due at the termination of a balloon mortgage and pays the loan in full.
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Borrower

An applicant who has been approved to receive a loan and is then contractually obligated to repay it and any additional fees according to the loan terms. See also Mortgagor.
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Bridge Loan

A loan that "bridges" the gap between the purchase of a new home and the sale of the borrower's current home. Once the sale of the old home is finished, the bridge loan is paid in full. Bridge loans are also called interim financing, swing loans or turnarounds.
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Buy-down

The process of paying discount points for a lower mortgage rate. It can also be an initial lump-sum payment made to temporarily reduce a borrower's monthly payments during the first few years of a mortgage.
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Buyer

The party purchasing property from the seller.
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