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Back Title - Known by various names, when titles previously have been examined up to a certain date and the current title is examined from that subsequent examination with the terminal date of the previous examination. Having your back title can qualify you for a reissue rate (see below).

Balloon Mortgage - A mortgage with a note that calls for the minimum payment of principal and the payment of interest at regular intervals, usually for 7 to 10 years, and the payment is usually amortized over 30 years. This type of note requires a substantial final payment known as the balloon payment, which represents all the remaining principal.

Balloon Payment - The final substantial payment on a loan, where the required payments have been amortized over 30 years to keep the monthly payments low, but the term for payoff of the principal is only 7 years.

Bankruptcy - A proceeding in U.S. District Court wherein assets of an insolvent debtor are protected and distributed in an equitable manner.

Basis Point - The movement of interest rates or yields expressed in hundredths of a percent.

Beneficiary - (1) A lender secured by a deed of trust; (2) one for whose benefit a trust is created; (3) one who is named in a decedent's will to inherit real or personal property.

Bill of Sale - An instrument conveying title to personal property

Binder - Sometimes called "preliminary certificate" or "title commitment." (1) A preliminary report as to the condition of a title and a commitment to issue a title insurance policy in a certain manner when certain conditions are met. (2) A deposit in escrow of a small part of the purchase price of real estate as evidence of good faith and to find an agreement to purchase. (3) Written evidence of temporary hazard and/or windstorm and flood insurance coverage issued by an insurance agent, which must be replaced by a permanent policy.

Blanket Loan - A loan which is secured by at least two pieces of real estate.

Borrower (Mortgagor) - One who receives funds in the form of a mortgage or deed of trust with the intention of repaying the funds in full according to it�s terms and conditions.

Bridge Loan (also called Swing Loan) - A loan extended to enable the borrower to purchase new real estate, when the proceeds of the sale of another property they own will be used to repay the loan, but the old property sale is delayed and the funds cannot be obtained prior to the closing of the borrower's new purchase.

Building Line or Setback - Distances from the ends and/or sides of the lot beyond which construction may not extend. The building line may be established by a filed plat of subdivision, by restrictive covenants in deeds or leases, by building codes, or by zoning ordinances.

Buy-down - When the lender and/or the homebuilder subsidize the mortgage by lowering the interest rate during the first few years of the loan. While the payments initially are low, they will increase when the subsidy expires.