B

Question 1

BACK-END RATIO

Answer 1

Comparison of a person’s total monthly obligations to his or her gross monthly income.
a.k.a.: Total debt ratio

Question 2

BAD TITLE

Answer 2

A condition where complete real estate ownership is impaired by unsettled claims and liens.
a.k.a.: Cloud on title

Question 3

BALLOON MORTGAGE

Answer 3

A mortgage with periodic payments including a final payment that is considerably larger than preceding payments.

Question 4

BALLOON PAYMENT

Answer 4

The final lump sum paid on the maturity date of a balloon mortgage.

Question 5

BASIS POINT

Answer 5

One 100th of 1% of the loan amount (0.0001 x loan amount = 1 basis point).

Question 6

BI-WEEKLY PAYMENT MORTGAGE

Answer 6

A plan to reduce debt by making payments every two weeks instead of every month. This is equivalent to making one additional monthly payment each year.

Question 7

BONA FIDE

Answer 7

In good faith and without fraud.

Question 8

BORROWER CREDIT

Answer 8

Credits at closing that are subtracted from the final closing costs. These might include fees or points paid by the seller, a yield spread premium, or fees paid by the borrower prior to closing, such as the appraisal fee. See also Yield Spread Premium (YSP).

Question 9

BRIDGE LOAN

Answer 9

A short-term loan collateralized by the borrower’s present home and used to close on a new house before the present home is sold.
a.k.a.: Swing loan