Back-end ratio
Borrower
Bankruptcy, chapter 13
Bridge loan
Bankruptcy, chapter 7
Balance
Back-end fee
Balloon mortgage
Base rate
Buy-down
The person who takes out a loan, complete with a contract, a loan note, and a commitment to the lender to repay the loan with a defined interest rate and payment period. In the context of a mortgage,one who defaults on the note may face foreclosure of the subject property.
Lenders make this payment to mortgage brokers involved in the transaction.
This is the interest rate that a borrower can qualify for with a mortgage lender. This rate doesn't require a mortgage lender to pay a yield spread premium nor does it require the borrower to pay any discount points to secure that interest rate. This rate is based on factors such as the borrower's loan amount, credit score and LTV ratio.
With this type of mortgage, the total amount is not paid off over the specified term of the mortgage. When the payments end, there is still a large amount due on the loan in a lump sum. A term for this type mortgage is five years. The mortgage can be an interest-only mortgage. Often, buyers expect that they will refinance this type mortgage before the lump sum is due.
Short-term, typically lasting for several months, enabling a borrower to finance the purchase of a new property. it is frequently used when a borrower purchases a new house before selling off the current house. Once the borrower sells the current property, the proceeds from its sale are used to pay this off.
This compares the borrower's monthly expenses, or debt, to his or her monthly gross income. It is used to assess approval of a borrower's loan application. Lenders generally look for a value below 36 percent.
One of the federal judicial processes used by an eligible borrower whose total debt burden is too large to stay current with payment obligations and who would otherwise default. It involves a repayment plan typically spread out over a three to five years of regular payments, after which any remaining debt is discharged. This offers the best chance for borrowers who want to avoid foreclosure. It remains on borrower's credit history for up to seven years and affects the borrower's ability to take out credit.
The seller or homebuilder might do this to the mortgage for the borrower by paying a fee to the mortgage lender to get a lower rate for a specified period. The lower interest rate typically lasts from one to five years, after which mortgage payments increase. A seller who pays the fee will usually increase the purchase price to offset the cost of doing this.
One of the federal judicial processes used by an eligible borrower whose total debt burden is too large to stay current with payment obligations and who would otherwise default. IT typically involves liquidation of some of the borrower's assets to distribute to creditors, with a result of discharge of most if not all debt. This type bankruptcy remains on a borrower's credit history for up to 10 years and affects the borrower's ability to take out credit.
the portion of a loan that remains unpaid.
