The Glossary Mortgage Terminology

Del Financial's Glossary consists of the more commonly used definitions, meanings, and descriptions used within the mortgage and real estate industry. As always, if you have any questions, please call us at (800) 469-5861.

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B-Paper
a credit rating the FICO score is from 620-659. Factors allow up two 30 day late mortgage payments and two to three 30 day late installment loan payments in the last 12 months. No delinquencies over 60 days are allowed. Should be two to four years since a bankruptcy.
Back End Ratio (debt-to-income ratio)
a ratio that compares the total of all monthly debt payments (mortgage, real estate taxes and insurance, car loans, and other consumer loans) to gross monthly income.
Back to Back Escrow
arrangements that an owner makes to oversee the sale of one property and the purchase of another at the same time.
Balance Sheet
a financial statement that shows the assets, liabilities and net worth of an individual or company.
Balloon Loan or Mortgage
a mortgage that typically offers low rates (or interest only options) for an initial period of time (usually 5, 7, or 10 years); after that time period elapses, the balance is due in full.
Balloon Payment
the final lump sum payment due at the end of a balloon mortgage.
Biweekly Payment Mortgage
a mortgage paid twice a month instead of once a month, reducing the amount of interest to be paid on the loan.
Borrower
a person who has been approved to receive a loan and is then obligated to repay it and any additional fees according to the loan terms.
Bridge Loan
a short-term loan paid back relatively fast. Normally used until a long-term loan can be processed.
Broker
a licensed professional or firm that serves as a mediator between a buyer and seller. Mortgage brokers are individuals in the business of arranging funding or negotiating contracts for a client. A real estate broker is someone who helps find or sell a house.
Building Code
based on agreed upon safety standards within a specific area, a building code is a regulation that determines the design, construction, and material requirements used in building.
Buy Down
An amount paid to the lender as a fee to lower the interest rate and payment.
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