Balloon mortgage - Balloon mortgage loans are short-term fixed-rate loans with fixed monthly payments for a set number of years followed by one large final balloon payment for all of the remainder of the principal. Typically, the balloon payment may be due at the end of five, seven, or ten years. Borrowers with balloon loans may have the right to refinance the loan when the balloon payment is due, but the right to refinance is not guaranteed.

Bankruptcy - A proceeding in a federal court to relieve certain debts of a person or a business unable to pay its debts. The person's assets are then turned over to a trustee and used to payoff outstanding bills.

Base loan amount - The foundation loan amount upon which loan payments are based. If any other charges accrue, those costs will be added to the base loan amount.

Bi-monthly Mortgage - A mortgage on which the borrower pays half of the monthly payment on the first day of the month and the remaining half on the 15th of that same month.

Bi-weekly Mortgage - A mortgage on which the borrower pays half the monthly payment every two weeks.

Borrower - 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.

Broker - A person who is licensed to handle property transactions and acts as a go-between for buyers and sellers. Brokers also assist on negotiating contracts.

Broker Processing Fee - The fee charged to you to have your file packaged and handed over to a selected lender. Typically is about $575 - $1000

Buydown Mortgage - A mortgage loan with a below-market rate for a period of time, usually one to three years. A borrower may want this option because they expect their earnings to go up but want a lower payment right now.

Buyer's Marketer - Market conditions that favor buyers. With more sellers than buyers in the market, sellers may be forced to make substantial price concessions.