Mortgage Glossary – B
Back-end ratio or back ratio
The sum of the house payment and all other monthly debt — credit cards, car payments, student loans and the like — divided by before-tax income. Traditionally, lenders were loath to extend borrowers’ back-end ratios past 36 percent, but they often do now.
A loan that has regular monthly payments which amortize over a stated term but call for a final lump sum (balloon payment) at the end of a specified term, or maturity date, such as 10 years.
A loan installment that is larger than the other, periodic payments and pays off the remaining principal.
A legal proceeding in a federal court to relieve certain debts of a person or a business that is unable to pay its debts. Chapter 7 bankruptcy gets rid of all debts. Chapter 13 allows a borrower with and income to pay bills off over a set period of time.
The legal owner of a piece of property.
A gift of personal property by will.
Bill of sale
A document that spells out the transfer of property.
A mortgage with payments due every two weeks, totaling 26 payments a year.
A mortgage that covers more than one parcel of real estate.
In good faith.
An individual who applies for and receives funds in the form of a loan and is obligated to repay the loan in full under the terms of the loan.
An individual who brings buyers and sellers together and assists in negotiating contracts for a client.
A mortgage loan with a less than market rate for a set period of time.
Market conditions that favor buyers. With too few buyers and too many properties for sale, the sellers may be forced to make substantial price discounts.