Glossary

BALLOON MORTGAGE: This is a type of mortgage loan in which the monthly payments are not large enough to repay the loan by the end of the term (mostly used in short term loans). So at the end of the term, the remaining balance comes due in a single large payment.

BALLOON PAYMENT: When the last and final large payment at the end of a balloon mortgage term is paid in full.

BANKRUPTCY: When a person or business is unable to pay their debts and seeks protection of the state against creditors. Bankruptcies remain on credit records for up to ten years and can prevent a person from being able to get a loan due to poor credit.

BEAM: A structural supporting member in construction.

BILL OF SALE: A physical receipt indicating the sale of personal property.

BIWEEKLY MORTGAGE: A mortgage where you make "half payments" every two weeks, rather than one payment per month. The end result is by making the equivalent of 13 monthly payments per year, rather than 12, significantly reducing the time it takes to pay off a thirty year mortgage.

BLIGHTED AREA: When any region of a city or town that has fallen into disrepair or otherwise has become undesirable.

BONA FIDE: This is a genuine offer, made without intent to defraud or deceive.

BRIDGE FINANCING: This interim loan made to facilitate the purchase of a new home before the buyer's current residence sells and its equity is available to fund the new purchase. This is also called a “Swing Loan”.

BRIDGING: The use of structural members between beams to strengthen the structure.

BROKER: An individual or a company licensed by the state who facilitates the purchase of property by bringing together a buyer and a seller.

BTU: This is a unit of measurement used to describe heating or cooling capacity the acronym for British Thermal Unit.

BUFFER ZONE: When a segment of land between two disparate municipal zones which acts as a shield to keep one zone from encroaching upon the other. This is most often used to separate residential districts from commercial areas.

BUILDING CODE: These are regulations that ensure the safety and material compliance of new construction within a municipality. Building codes are localized to ensure they are adequate to meet the risk of common hazards in structures.

BUILDING LINE OR SETBACK: This is the statutory distance between buildings and the property line, imposed by municipalities, home associations, or other written or personal agreements.

BUILT-INS: These are specific items of personal property which are installed in a real estate improvement such that they become part of the building often considered attachments. Built-in microwave ovens, dishwashers and shelving are common examples.

BUNGALOW: A type of home-style dating from the early twentieth century. Usually, this is a one-story home which is often characterized by a low-pitched roof.

BUY DOWN: The extra money paid in a lump sum to reduce the interest rate of a fixed rate mortgage for a period of time. The money may be paid by the borrower, in order to have a lower payment at the beginning of the mortgage. Or the extra money may be paid by the seller, or lender, as incentive to buy the property or take on the mortgage. Some builders use this as an incentive to sell properties in a down market.