An account in which money is held so that it can be applied to the monthly mortgage payments, as each payment comes due, during the period that an interest rate buy-down plan is in effect.
Check with your lending institution to find out what days it considers as business days under the Truth in Lending and Electronic Fund Transfer Acts. Usually excludes weekends and holidays.
Regulations established by local governments that control design, construction and materials used in construction. Building codes are usually based on standardized health and safety guidelines.
A category of income or expense data that you can use in a budget.
Sometimes called a "swing loan", a bridge loan is generally a loan that is secured by a borrower's current residence to obtain the funds needed to purchase a new home if the current residence will not be sold prior to the purchase of a new home.
Breach of Contract
A violation of the terms of any legal obligation or agreement.
In good faith without fraud.
A single mortgage that is secured by more than one parcel of real estate.
Blanket Insurance Policy
A single policy that covers more than one piece of property (or more than one person).
A sum of cash paid to a seller by a buyer prior to the closing to show that the buyer is serious about buying the house. The binder deposit is deducted from the purchase price at closing and is not an additional cost. Sometimes referred to as earnest money.
Any mistake in your monthly statement as defined by the Fair Credit Billing Act.
Bill of Sale
A written instrument that transfers title to personal property.
Bi-weekly Payment Mortgage
A mortgage that requires payment to reduce the debt every two weeks instead of monthly. The 26 (sometimes 27) biweekly payments are each equal to one-half of the monthly payment that would be required with a standard 30 year fixed-rate mortgage. The result is a faster loan balance reduction with substantial savings in interest.
A survey of economic conditions, conducted in the Federal Reserve’s 12 regional banks, in preparation for Federal Open Market Committee meetings. Frequency: twice per quarter. Source: Federal Reserve.
Before Tax Income
Income before deducting taxes.
The final payment that is made at the maturity date of a balloon mortgage and pays the loan in full.
A short-term fixed-rate loan which involves smaller payments for a certain period of time and one large payment for the entire balance due at the end of the loan term.
A financial statement in a table form that shows assets, liabilities and net worth.
A contract to buy property that becomes effective if a prior contract fails to be agreed upon.
The replacement of excavated dirt into a hole, crevice or against a structure such as a foundation.