Backup offer: A
secondary bid for a property that the seller will accept if the first offer
Balloon payment: A
loan with monthly payments too low to pay off the balance in the specified
term. The balance must be paid in full when the loan comes due -- typically
within three to five years.
Bi-Weekly Mortgage: A
mortgage that requires payments every two weeks and helps repay the loan
over a shorter term. See
our mortgage guide.
Broker A person who
has a real estate broker's license, who may not only make real estate
transactions for others in exchange for a fee (or other consideration), but
also may operate a real estate business and employ sales associates and
Buyer - Broker: A
real estate broker who exclusively represents the buyer's interests in a
transaction and whose commission is paid by the buyer rather than the
Buy down A method of
lowering the interest rates on a mortgage, either temporarily or for the
entire term of the loan. Often points are paid up front to make up the
difference between the rate actually charged on the mortgage and the rate at
which the buyer pays. Practically anyone -- sellers, buyers, home builders,
relatives, etc. -- can buy down rates.
Buyer pool The
entire market of prospective home buyers in a specific area or looking for a
type of home.
Buyer's Remorse: An
emotion felt by first-time homebuyers (anything you buy- coat, car
etc) after signing a sales contract or closing the purchase of a house.
Example: "Why did I buy that? I can't believe...."