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Balloon loan
A mortgage in which the monthly payment is not large enough to repay the loan by the end of the term. The final payment is a large lump sum of the remaining balance.
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Balloon payment
The final lump sum payment due at the maturity date of a balloon mortgage.
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Basis point
One one-hundredth of a percentage point, or .01%. For example, if the bank rate decreased from 5.45% to 5.35%, it went down 10 basis points.
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Bidding war
Multiple offers to purchase a piece of property
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Bill of sale
A written document that transfers ownership of personal property.
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Bridge loan
A type of mortgage loan that is collateralized by the borrower's present home and that allows the homeowner to use the funds to make a down payment and pay closing costs on a new home before the present home is sold.
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Buy-down mortgage
A mortgage loan in which the lender receives a premium as an incentive to reduce the interest rate during the early years of the mortgage.
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