A financial statement that shows assets, liabilities, and
net worth as of a specific date.
A mortgage that has level monthly payments that will amortize
it over a stated term but that provides for a lump sum payment
to be due at the end of an earlier specified term.
The final lump sum payment that is made at the maturity date
of a balloon mortgage.
A person, firm, or corporation that, through a court proceeding,
is relieved from the payment of all debts after the surrender
of all assets to a court-appointed trustee.
A proceeding in a federal court in which a debtor who owes
more than his or her assets can relieve the debts by transferring
his or her assets to a trustee.
Income before taxes are deducted.
The person designated to receive the income from a trust,
estate, or a deed of trust.
To transfer personal property through a will.
An improvement that increases property value as distinguished
from repairs or replacements that simply maintain value.
A written document that transfers title to personal property.
A preliminary agreement, secured by the payment of an earnest
money deposit, under which a buyer offers to purchase real
A mortgage that requires payments to reduce the debt every
two weeks (instead of the standard monthly payment schedule).
The 26 (or possibly 27) biweekly payments are each equal to
one-half of the monthly payment that would be required if
the loan were a standard 30-year fixed-rate mortgage, and
they are usually drafted from the borrowers bank account.
The result for the borrower is a substantial savings in interest.
A single policy that covers more than one piece of property
(or more than one person).
The mortgage that is secured by a cooperative project, as
opposed to the share loans on individual units within the
In good faith, without fraud.
An interest-bearing certificate of debt with a maturity date.
An obligation of a government or business corporation. A real
estate bond is a written obligation usually secured by a mortgage
or a deed of trust.
A violation of any legal obligation.
A form of second trust that is collateralized by the borrower's
present home (which is usually for sale) in a manner that
allows the proceeds to be used for closing on a new house
before the present home is sold. Also known as "swing
A person who, for a commission or a fee, brings parties together
and assists in negotiating contracts between them.
A detailed plan of income and expenses expected over a certain
period of time. A budget can provide guidelines for managing
future investments and expenses.
A category of income or expense data that you can use in a
budget. You can also define your own budget categories and
add them to some or all of the budgets you create. "Rent"
is an example of an expense category. "Salary" is
a typical income category.
Local regulations that control design, construction, and materials
used in construction. Building codes are based on safety and
An account in which funds are held so that they can be applied
as part of the monthly mortgage payment as each payment comes
due during the period that an interest rate buydown plan is
A temporary buydown is a mortgage on which an initial lump
sum payment is made by any party to reduce a borrowers
monthly payments during the first few years of a mortgage.
A permanent buydown reduces the interest rate over the entire
life of a mortgage.