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Back-end ratio, or debt ratio -- The amount you pay in monthly debt (car payments, credit cards, student loans, etc.) divided by your gross monthly income.

Balloon payment mortgage, term mortgage -- A short-term fixed-rate loan which involves small payments for a certain time period and then one large payment (the balloon payment, for the remainder of the loan) at a predetermined date.

Betterment -- An improvement (such as renovations and additions) that increases a property's value, different from routine home maintenance and repairs.

Bill of sale -- A written document that attests the transfer of the ownership (title) of personal property.

Biweekly payment mortgage -- A mortgage in which you make payments every two weeks instead of once a month. The result is that instead of making 12 monthly payments during the year, you make 13. The total amount you pay equals the amount of 13 payments, because you pay a total of 26 half-payments (one every other week) rather than 12 whole payments (one every four weeks or so, depending on the month). The extra payment helps you reduce the principal, substantially reducing the time it takes to pay off a 30-year mortgage.

Blanket mortgage -- A mortgage covering two or more pieces of real estate.

Blended payments -- A repayment method by which the same amount is paid each month, but the composition of the interest and principal changes with each payment. With each payment, the amount allocated to the principal increases as the amount allocated to interest decreases. Most mortgages use blended payments because it provides a consistent monthly payment amount for the borrower.

Bona fide - Authentic; made or carried out in good faith; real; sincere; genuine.

Borrower (mortgager) -- One that mortgages property; a person who applies for and receives a mortgage loan.

Breach -- To break or violate an agreement.

Broker -- A mortgage broker is an individual whose business is to help arrange funds or negotiate contracts for a client but who doesn't loan money himself. A real estate broker is a real estate agent who is licensed to list property. A Realtor is a broker or agent who is a member of the National Association of Realtors (NAR).

Building codes -- Local regulations regarding the design and construction of buildings.

Buy down -- A fixed-rate mortgage where the interest rate is "bought down" for a temporary period, usually one to three years. After that time, the borrower's payment is calculated at the note rate. In order to temporarily buy down the initial rate, a lump sum is paid to the lender and held in an account used to supplement the borrower's monthly payment. These funds usually come from the seller as an incentive to induce someone to buy their property.

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