Basic Terms Used for Real Estate & Mortgages
Real estate & loans may involve other terms. In the event you don't understand some of these terms, ask for help from your real estate agent, lender or attorney.
Beneficiary
A person who acquires or is going to acquire benefits from indisputable events.
Bi-weekly Mortgage
A mortgage which requires 1/2 the normal monthly payment every two weeks. Over the course of the year, 26 half payments are made which is equivalent to 13 full mortgage payments. As a result of this extra payment the loan amortizes much faster than a loan with normal monthly payments.
Blanket Mortgage
A contract comprising of multiple amounts of property.
Borrower
A person who receives a loan and is responsible to make mortgage payments.
Bridge Loan
A loan used for someone who is having trouble selling his/her current home and needs money to buy a new home. Once the current home is sold the loan is then paid off.
Buy Down
A lower interest rate is offered through a point system set by the lender (buying the rate lower). The rate may last through the life of the loan or for only a year or so. The buy down system is a method for someone to qualify who is not suitable as a potential borrower. With a buy down the monthly payments are lowered.
Buyers Broker
A buyer seeks someone, usually an agent, to find and locate property that is for sale. The broker, a delegate on the behalf of the buyer, tries to deal with the sellers brokers to achieve the best possible deal.
Buyers Market
When buyers are able to bargain with sellers for a lower prices over property this may be a cause known as the buyers market (more sellers then buyers). The market is in favor of the buyers since more property for sale is in abundance. This type of buyers market may be seen during an economic drop or widespread developments.
Bylaws
How an establishment/organization handles business (set of regulations), e.g. a condo community constructs bylaws that define the number of people that may live in one household.
