Balloon Mortgage - A short-term, fixed-rate loan with low payments for a set number of years and one large final balloon payment of the remainder of the principal.

Balance Sheet - A document showing the financial situation--assets, liabilities, and net worth--of a company at a specific point in time.

Bankruptcy – Proclamation by a court of an individual’s (or organization’s) state of insolvency, or inability to pay debts. Petition may be brought by an individual or creditors, with a goal of orderly and equitable settlement of obligations.

Bearer - The legal owner of a piece of property.

Bill of Sale - A document by which one transfers ownership of goods to another.

Bi-weekly Mortgage – A payment plan under which the borrower pays one half of a monthly payment every two weeks.

Blanket Mortgage - A mortgage covering at least two or more pieces of real estate, both of which together serve as collateral for the loan.

Bona Fide - In good faith.

Bond - A document representing a right to certain payments on underlying collateral.

Borrower (Mortgagor) - An individual who applies for and receives a loan in the form of a mortgage with the intention of repaying the loan in full.

Buy-down – A situation in which the seller contributes money, allowing the lender to give the buyer a lower rate and payment, usually in exchange for an increase in sales price.