B Mortgage Terms | Oconee County Real Estate
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Balance Sheet
A financial statement that shows assets, liabilities
and net worth as of a specific date.
Balloon Payment
A lump sum payment for the unpaid balance of the loan.
Basis Point
One hundredth of a Point. A Point is one percent of
the Principal amount of a mortgage. A Basis Point is
one hundredth of one percent of the Principal amount
of the mortgage.
Beneficiary
The person designated to receive the income from a trust,
estate or deed of trust.
Bi-Weekly Mortgage
A mortgage to which you make payments every two weeks.
Since there are 52 weeks in a year, this works out to
26 payments a year. The payment is usually calculated
by dividing the monthly mortgage payment by two. It
works out to roughly the equivalent of prepaying one
extra monthly payment each year. This saves a significant
amount of Interest over the term of the mortgage, as
well as shortening the time to pay it off. Some banks
offer this type of mortgage but you can get similar
results by making an extra mortgage payment each year
on a monthly mortgage.
Broker
A person who, for a commission or a fee, brings parties
together and assists in negotiating contracts between
them.
Budget
A detailed plan of income and expenses expected over
a certain period of time. A budget can provide guidelines
for managing future investments and expenses.
Buydown
A way to reduce the Interest Rate that a bank is charging
you and qualify for a more expensive home. This Interest
Rate reduction only applies for the first few years.
The bank is willing to do this for a lump sum fee, usually
at the beginning of the mortgage. This may be a very
smart way for you to reduce the Interest that you will
have to pay over the life of the mortgage. Builders
also Buy Down mortgages, usually so that they can entice
new homebuyers with the attraction of below market rates.
They simply add the cost of the Buy Down onto the price
of the new home. See also
Interest Rate Buydowns.
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