Balloon Loan: Requires level payments just as a 15-year or 30-year fixed rate loan. But well before the date it becomes due, the full remaining balance of the loan comes due. Though they can be economical at the outset, beware of balloon loans – you may not be able to refinance the loan.

Balloon Payment: A lump sum principal payment due at the end of some mortgages or other long-term loans.

Beneficiary: As used in a trust deed, the lender is designated as the Beneficiary, i.e. obtains the benefit of the security.

Binder: Sometimes known as an offer to purchase or an earnest money request. A binder is the acknowledgement of a deposit along with a brief written agreement to enter into a contract for the sale of real estate.

Biweekly payment mortgage: A mortgage requiring payments every two weeks instead of the standard monthly payment. The result is a substantial savings in interest.

Bridge loan: If you close on a home before completing the sale of your existing home (not an ideal circumstance by anyone’s estimation), you may need to obtain a bridge loan.

Broker: A person who, for a commission or fee, brings parties together and assists in negotiating contracts between them.

Buydown: A Veteran’s Administration loan plan available only in some new housing developments. A builder agrees to pay part of the mortgage for the first few yeas. Sellers also may create buydowns by paying lenders a predetermined amount of money so lenders will reduce their interest rates.

Buyer’s agent: A person licensed to negotiate and transact the sale of real estate on behalf of the buyer. The buyer’s broker or agent owes allegiance only to the buyer and does not have an agent relationship with the seller.

Courtesy of Sonata Realty