Balloon Mortgage
A mortgage with a balloon payment.

Balloon Payment
The final payment on a loan, when that payment is greater than the preceding installment payments and pays the loan in full.

Basis Point
One one-hundredth of a percentage point. For example, if mortgage rates fall from 7.50% to 7.47%, then they've declined 3 basis points. A full percentage point is 100 basis points.

Bridge Loan
A loan, normally short term, used by an owner to purchase real estate pending the sale of another property. Normally, the loan is repaid from the owner's equity if and when the previous property sells.

Broker
A state-licensed agent who, for a fee, acts for property owners in real estate transactions, within the scope of state law.

Builder Warranty
A guarantee on the quality of construction offered by the developer or building contractor.

Building Codes
Regulations established by local governments describing the minimum structural requirements for buildings; includes foundation, roofing, plumbing, electrical, and other specifications for safety and sanitation.

Building Line
A line fixed at a certain distance from the front and/or sides of a lot, beyond which the building may not project.

Buy Down
The action to pay additional discount points to a lender in exchange for a reduced rate of interest on a loan. The reduced rate may apply for all or a portion of the loan term. A loan that has been bought down by the seller of the property for the benefit of the buyer.